Wal-Mart 401(k) pays retail – does your 401(k) also?
Dec 31st, 2009 | By Charles L. Stanley CFP® ChFC® AIF® | Category: News
“Merrill Lynch, with Wal-Mart’s blessing, was choosing mutual funds based on payments that the funds would make to Merrill Lynch,” says Braden attorney Derek Loeser of Keller Rohrback in Seattle, Wash. “This explains the anomaly of a $10 billion plan ending up with off-the-shelf retail funds that just so happen to share revenue.”
Forbes magazine reports on a collosal failure at Wal-Mart to put their employees first in the administration of their 401(k) plan. Who is the big winner? Merrill Lynch, who else? This is how Wall Street works. I hope this is a wake up call to many Americans who are being fleeced by the likes of Merrill Lynch in their retirement plans. I encourage you to take a good look at your plan, find out how much is being paid from your assets compared to what you could get it for – if employee benefit is on the top of the list rather than broker benefit.
For the whole Forbes story go to Wal-Mart 401(k) Pays Retail
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