Teachers Pay High Fees for Retirement Funds
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Re: Teachers Pay High Fees for Retirement Funds
#2Unions in CA are also why teachers can't get disability insurance. Have to go out for surgery? You get nothing.
Re: Teachers Pay High Fees for Retirement Funds
#3I don't see any reason an employer or union wouldn't offer Vanguard/Fidelity/Schwab for 401k/HSA with access to the I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments.
Edit: At least for an HSA, one can transfer the funds out into a Fidelity HSA account immediately. With a 401k, you have to wait until you leave your employer, but with an HSA, just request a transfer of funds to your Fidelity HSA, which is free and you can invest in anything you like.
Re: Teachers Pay High Fees for Retirement Funds
#4I don't see any reason an employer or union wouldn't offer Vanguard/Fidelity/Schwab for 401k/HSA with access to the I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments. Edit: At least for an HSA, one can transfer the funds out into a Fidelity HSA account immediately. With a 401k, you have to wait until you leave your empl…
I don’t understand why 401k even exists. The money should go into an IRA controlled by the owner. The employer should have no say in this. The same should go for health insurance....
Re: Teachers Pay High Fees for Retirement Funds
#5I don't see any reason an employer or union wouldn't offer Vanguard/Fidelity/Schwab for 401k/HSA with access to the I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments. Edit: At least for an HSA, one can transfer the funds out into a Fidelity HSA account immediately. With a 401k, you have to wait until you leave your empl…
I don’t understand why 401k even exists. The money should go into an IRA controlled by the owner. The employer should have no say in this. The same should go for health insurance....
It exists to give large employers who can afford to pay for administering those benefits an advantage over smaller employers. Same for health insurance.
Re: Teachers Pay High Fees for Retirement Funds
#6Unions are not perfect. But they are the only protection individual laborers have left against the unstoppable power of modern corporations. Don't ever fall for the endless slandering laid against them by capitalists.
Re: Teachers Pay High Fees for Retirement Funds
#7I don't see any reason an employer or union wouldn't offer Vanguard/Fidelity/Schwab for 401k/HSA with access to the I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments. Edit: At least for an HSA, one can transfer the funds out into a Fidelity HSA account immediately. With a 401k, you have to wait until you leave your empl…
One important difference is that teachers tend to use 403b vs 401k. One difference the WSJ calls out is that the rules around 403b aren't as strict, and the employer (ie: the school) isn't required to act in the best interest of the teacher when offering the plan.
Re: Teachers Pay High Fees for Retirement Funds
#8Earlier quoted context omitted.
I don’t understand why 401k even exists. The money should go into an IRA controlled by the owner. The employer should have no say in this. The same should go for health insurance....
It exists to give large employers who can afford to pay for administering those benefits an advantage over smaller employers. Same for health insurance.
It's not so much an "advantage over smaller employers" as it is a "subsidy for large employers" or a "way to spend less money to offer the same benefits so profits are higher".
Re: Teachers Pay High Fees for Retirement Funds
#9Earlier quoted context omitted.
I don’t understand why 401k even exists. The money should go into an IRA controlled by the owner. The employer should have no say in this. The same should go for health insurance....
It exists to give large employers who can afford to pay for administering those benefits an advantage over smaller employers. Same for health insurance.
In addition probably also a subsidy for the financial industry.
Re: Teachers Pay High Fees for Retirement Funds
#10Unions are not perfect. But they are the only protection individual laborers have left against the unstoppable power of modern corporations. Don't ever fall for the endless slandering laid against them by capitalists.
Employees have the ability to switch jobs, whereas unions make it hard to join a different shop at the same seniority level as before. I would rather be able to switch jobs easily than have to follow union rules.