http://money.cnn.com/2014/08/18/retirem ... -lawsuits/
If you are a current or former Fidelity employee, the good news is that you may gain access to Vanguard, and other competitor funds in your Fidelity 401k.
Fidelity settles lawsuits over its own 401(k) plan
Re: Fidelity settles lawsuits over its own 401(k) plan
$12M for 50k people is $240 per person.
Re: Fidelity settles lawsuits over its own 401(k) plan
Are you kidding?
This should be a message to anyone investing in Fidelity mutual funds.
IF I read this right, the company was sued by their own employees for offering [their own] higher-cost mutual funds.
Thanks for reading.
This should be a message to anyone investing in Fidelity mutual funds.
IF I read this right, the company was sued by their own employees for offering [their own] higher-cost mutual funds.
Thanks for reading.
~ Member of the Active Retired Force since 2014 ~
Re: Fidelity settles lawsuits over its own 401(k) plan
Also, Fidelity 401k participants will receive the "revenue sharing" payments from both the Fidelity mutual funds and the non-Fidelity mutual funds. These payments are in addition to the funds performance. These payments are usually hidden from the 401k participants and made to the plan sponsor or the Third Party Administrator.investor1 wrote:$12M for 50k people is $240 per person.
Depending on the size of the participants 401k, and the funds selected, these additional payments could dwarf the $240 cash settlement over time.
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Re: Fidelity settles lawsuits over its own 401(k) plan
Why should that have anything to do with it?cfs wrote:This should be a message to anyone investing in Fidelity mutual funds.
Re: Fidelity settles lawsuits over its own 401(k) plan
+1. Here is a quote from the article.placeholder wrote:Why should that have anything to do with it?cfs wrote:This should be a message to anyone investing in Fidelity mutual funds.
I would be more leery of a company that would lock its customer's accounts on 'suspicious activity' and give them grief about it, rather than one that shafts its own employees (heck, even Google and Apple do that)!Last year a group of current and former employeessued the retirement plan provider, alleging that the company's employee plan was dominated by higher-cost Fidelity mutual funds when lower-fee options were available -- both within Fidelity's own offerings and from other providers.
They noted that the more than 150 investment options available in the Fidelity plan were all offered by Fidelity or a company subsidiary, according to the suit. And, at the end of 2010, nearly 85% of the plan's assets were held in actively managed Fidelity mutual funds, which tend to charge higher fees than passively managed index funds.