Supreme Court to hear 401(k) fee case

On Tuesday, the country's highest court will hear arguments in a case that revolves around the investment fees paid by 401(k) plan participants.

In the initial class-action lawsuit, Tibble v. Edison, participants in the 401(k) plan sponsored by California-based utility Edison International argued that they were being charged excessive fees.

What was the fee? 1%, 1.25%? higher? Who defines what is too high a fee? Not a word about the options and how or how not within the options of the Edison plan was an ability to obtain asset allocation amongst broad asset classes. FWIW this could paralyze what was a brilliant stroke by the Reaganites that gave us the 401k. It is not perfect, IMHO many plans ( including large Multi-National Corps ) have some good funds and some lousy ones and typically do not cover all asset classes. Can they up their game? Yes, Do you need a true "Fiduciary"? possibly, you could hire one now to help with your fund pic's within what you have, but if they are not the greatest to start with you do the best you can. Open up 401k plans to 15,000 funds within a platform like a Schawb or Vanguard? Sure I think that is do-able if you get an outside adviser ( "Fee-Only" ) to work on your behalf, but is it the employer's responsibility to pay for said adviser? No IMHO.

Have the Supreme's divine any or all of this? Hell no...

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.