US. Bosses, Beware! You’re Legally at Risk Over High 401(k) Plan Fees
Yes, CEOs have a fiduciary responsibility to their employees, and if they fail to fulfill it, the employees can sue. And win.
A good 401(k) plan can be an amazing tool for helping to build your retirement nest egg. Most companies offer at least some level of employer match, and the tax deferral is a great perk. But if your 401(k) options come larded with excessive fees, it’s a whole different story.
In this segment from the Motley Fool Answers January mailbag show, hosts Alison Southwick and Robert Brokamp — and special guest Sean Gates, a financial planner with Motley Fool Wealth Management, a sister company of The Motley Fool — take a question from a listener whose friend is being hit with an up-front 5.75% sales fee, over and above the annual fees and expenses for the funds in his employers’ plan. Their advice: You may need a lawyer, but it might be better to open the conversation a bit less adversarially.
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