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Wells Fargo, In 'Atypical' Outcome, Wins 401(k) Lawsuit
FYI: (Click On Article Title at Top Of Google Search) The win could provide fodder in other legal defenses, and supports the contention that comparing fund costs to Vanguard doesn't always provide an accurate barometer. Regards, Ted https://www.google.com/#q=Wells+Fargo,+in+'atypical'+outcome,+wins+401(k)+lawsuit
I didn't think this was atypical. Even when providers "lose" they do so by paying a fine without admitting wrong doing. Which means they win or they "win".
Companies and individuals should frankly take responsibility. Why are company executives going to Wells Fargo to manage their 401ks instead of Vanguard?
One argument I found ludicrous is that WF kept their own funds in 401k despite better performing lower cost funds. Past performance is no guarantee of future results. No wonder WF won. One does not have to be a lawyer to know hard to prove malicious intent.
If two companies are selling product of equal/better quality with lower cost, we want to buy the higher cost product and then sue. This is not about the higher cost product company being a crook. This is about our stupidity at large OR about damn care attitude of some in charge of making decisions for others, and then when people complain, go crying to government.
I once worked for a small company. When I joined it and qualified for investing in 401k after 3 months, I was looking at a plan with funds with minimum ERs of 1.0, and stacked with variably annuity backed funds, which were ALREADY tax deferred being offered in 401k. It took me 2 months of railing and gathering support and I successfully lobbied to get the 401k provider changed at the end of the year. I was mighty proud of it. And this was way back in 2001.
Stop suing. Take action. Don't make government spend money on lawyers.
Comments
Companies and individuals should frankly take responsibility. Why are company executives going to Wells Fargo to manage their 401ks instead of Vanguard?
One argument I found ludicrous is that WF kept their own funds in 401k despite better performing lower cost funds. Past performance is no guarantee of future results. No wonder WF won. One does not have to be a lawyer to know hard to prove malicious intent.
If two companies are selling product of equal/better quality with lower cost, we want to buy the higher cost product and then sue. This is not about the higher cost product company being a crook. This is about our stupidity at large OR about damn care attitude of some in charge of making decisions for others, and then when people complain, go crying to government.
I once worked for a small company. When I joined it and qualified for investing in 401k after 3 months, I was looking at a plan with funds with minimum ERs of 1.0, and stacked with variably annuity backed funds, which were ALREADY tax deferred being offered in 401k. It took me 2 months of railing and gathering support and I successfully lobbied to get the 401k provider changed at the end of the year. I was mighty proud of it. And this was way back in 2001.
Stop suing. Take action. Don't make government spend money on lawyers.