This article is why.
GE (Greedy Executives) forced employees to invest in 401(k) plans which IT administered: picking up management fees while underperforming.
And “fiduciary duty” means the companies have to monitor underperforming funds and winnow the poor ones, rather than choose the fund based on which funds salespeople provide the hottest $1,000/hr callgirls to the executives making the decision /snark>
Lawsuit alleging General Electric ripped off its workers shows the pitfalls of 401(k) plans
This article is why.
GE (Greedy Executives) forced employees to invest in 401(k) plans which IT administered: picking up management fees while underperforming.
And "fiduciary duty" means the companies have to monitor underperforming funds and winnow the poor ones, rather than choose the fund based on which funds salespeople provide the hottest $1,000/hr callgirls to the executives making the decision /snark>
Lawsuit alleging General Electric ripped off its workers shows the pitfalls of 401(k) plans
Its possible they did this, but it is small, small potatoes to GE’s total revenue. Usually you are talking like .35% vs .70% of revenue and its usually passive vs actively managed funds. The debate rages on. Lawyers are the only ones that win in those lawsuits, though.