• CharlesDarwin@lemmy.world
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    11 months ago

    Also, there are all those management fees to be made…I’m surprised the 401K is even legal at this point. Imagine setting up a structure where huge amounts of guaranteed profits are given to an industry:

    All told, the Center for American Progress estimates that a typical worker – earning the median income and paying the average 401(k) fees over their lifetime – will be assessed a total of $138,336 in fees. And the cost is much more severe for high-income workers, who, assuming a starting salary of $75,000 at age 25, are projected to pay an estimated $340,147 over their lifetimes, thanks to the fee structure of the average 401(k) plan.

    • lolcatnip@reddthat.com
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      11 months ago

      Why would that surprise you? It’s the kind of policy Republicans absolutely love, and which most elected Democrats are perfectly willing to tolerate.

    • Blue_Morpho@lemmy.world
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      11 months ago

      That’s on them for falling for the " money managers know what they are doing" scam.

      I fell for it for 10 years. Now it’s direct stock ownsership and etf’s. The founder of Vanguard started his fund because he knew the scam.

      Everyone thinks they have a young Warren Buffett running their investments when really it’s used car salesmen getting kickbacks for investing your money in bad funds. Obama made that illegal but if course Trump made it legal again.

      • lolcatnip@reddthat.com
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        11 months ago

        Sounds like victim blaming to me. Scams should not be legal or tolerated, and most especially, nobody should be allowed to profit from running a scam.

        • Blue_Morpho@lemmy.world
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          11 months ago

          Is Vegas a scam? You know the odds. Funds publish their returns and their charges. The commissions on bad investments should be illegal and once were.

          • lolcatnip@reddthat.com
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            11 months ago

            Do Vegas casinos party money to promote the idea that gambling there is an investment?

            Your analogy sucks. Everyone knows gambling is for entertainment.

    • Socsa@sh.itjust.works
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      11 months ago

      This is no different from a pension though. Those were typically managed funds as well.