Why would a CPFA recommend high fee funds?

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fortfun
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Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 12:26 pm

A CPFA has selected funds with mostly high fees in my employer's 457 plan. Why would he do this and is there any recourse? My employer pays a company to select our fund choices. Empower retirement says my employer can pick any fund it wants.

Here are the options in my 457. All have high fees besides the 2 vanguard funds:
Image
Last edited by fortfun on Thu Nov 14, 2019 3:04 pm, edited 1 time in total.

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Re: Why would a CPFA recommend high fee funds?

Post by Dottie57 » Thu Nov 14, 2019 12:30 pm

He gonna make lots of dinero. Not looking out for investors.

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Re: Why would a CPFA recommend high fee funds?

Post by SpaceMonkey » Thu Nov 14, 2019 12:43 pm

Those are gross expenses. What are the net expense ratios? Sometimes different plans have different reimbursements/waivers that bring those down somewhat.

The listed expenses here for the target date funds are high relatively to many, but they aren't insane compared to the options that many people have in their employer-sponsored plans.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 1:42 pm

Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
He is supposed to be a "fiduciary" CFP
https://alphacmg.com/team-member/mark-ell

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 1:42 pm

SpaceMonkey wrote:
Thu Nov 14, 2019 12:43 pm
Those are gross expenses. What are the net expense ratios? Sometimes different plans have different reimbursements/waivers that bring those down somewhat.

The listed expenses here for the target date funds are high relatively to many, but they aren't insane compared to the options that many people have in their employer-sponsored plans.
Empower says that is also NET.

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Re: Why would a CPFA recommend high fee funds?

Post by CrossOverGuy » Thu Nov 14, 2019 1:50 pm

Complain to HR or someone higher up at your employer. Tell them to at least have the S&P 500 or Total Stock Market from Vanguard available to you, since they are using Vanguard for 2 options selected and that you can personally show a printout that Vanguard is about 0.03 for their Admiral Shares. If your employer won't do anything, have your assets directed perhaps to the 2 Vanguard (low and medium) funds, maybe some to the S&P 500 (which isn't horrible at .54 but still too high); that at least would be an equivalent of having a Total Stock covered. Have enough of your paycheck percentage up to the company match (if any) deducted, then have the rest of your personal total allocation plan for retirement funds sent to a Roth or Regular IRA at Vanguard, Fidelity or another low-cost fund family (like your bond allocation which can easily be had for a much smaller ER). If you don't want to pay the 0.54 for the S&P 500 through your 457, have that, the Total Market (or whatever you want) directly at Vanguard or Fidelity as well.
Last edited by CrossOverGuy on Thu Nov 14, 2019 1:58 pm, edited 4 times in total.

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Re: Why would a CPFA recommend high fee funds?

Post by Jack FFR1846 » Thu Nov 14, 2019 1:53 pm

"Follow the money"

That's why.

Your funds are fine. Why? Because you've got 2 funds worth investing in. To me, that's enough. At my work, with Fidelity, we have exactly 1 good fund. S&P 500 at 0.015% ER. That's all I need and 100% goes there for me. The rest can charge 8% for all I care. I don't need any of them.
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Re: Why would a CPFA recommend high fee funds?

Post by anon_investor » Thu Nov 14, 2019 1:55 pm

Wow that is terrible, not even a low cost S&P 500 index fund (even in the crappy 401ks at prior employers there was always that). If I were you I would just buy those two vanguard funds, and in your TIRA/Roth IRA buy a large cap fund to offset (to approximate the Total U.S. Stock Market).

Just google searched it but, the organization that issues the CPFA says (https://napacpfa.org/):
"Plan advisors who earn their CPFA demonstrate the expertise required to act as a plan fiduciary or help plan fiduciaries manage their roles and responsibilities."

Maybe that guy is NOT a fiduciary, he just advises the plan fiduciary? Meaning he is getting "mucho dinero" :moneybag :moneybag :moneybag !

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Re: Why would a CPFA recommend high fee funds?

Post by almostretired1965 » Thu Nov 14, 2019 2:01 pm

Wow, I'm shocked that a S&P500 Index fund can get away with a 0.5% expense ratio. I had an employer in the past that had a horrendous 401K (with Principal). If I remember correctly, the net expense ratio for every available choice was about a full percentage point higher than equivalent/identical funds you could find on your own. But it was a very small company. Fortunately it got acquired a year after I joined and the new company's plan was much better.

A

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Re: Why would a CPFA recommend high fee funds?

Post by willthrill81 » Thu Nov 14, 2019 2:05 pm

fortfun wrote:
Thu Nov 14, 2019 1:42 pm
Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
He is supposed to be a "fiduciary" CFP
https://alphacmg.com/team-member/mark-ell
Sadly, being a fiduciary often doesn't mean much. Also, it can be legally meaningless in some situations, where an advisor must be a fiduciary with certain accounts (e.g. 401k and IRA) but not with other accounts (e.g. taxable).

Further, being a fiduciary does not mean that the advisor does not have potentially strong conflicts of interest (e.g. moving assets under their AUM for the fee, recommending very low withdrawal rates for retirees for the same reason).
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Re: Why would a CPFA recommend high fee funds?

Post by JAZZISCOOL » Thu Nov 14, 2019 2:06 pm

fortfun wrote:
Thu Nov 14, 2019 12:26 pm
A CPFA has selected funds with mostly high fees in my employer's 457 plan. Why would he do this and is there any recourse? My employer pays a company to select our fund choices. Empower retirement says my employer can pick any fund it wants.

Here are the options in my 457. All have high fees besides the 2 vanguard funds:
Image
Of particular concern to me is the Greatwest Life SP500 Index Fund at an expense ratio of 54 basis points! This is inexcusable in this day and age IMO! :shock:

Not to mention the reams of 401k/403b lawsuits out there over high fees, etc. Not sure if there have been any with 457 plans yet.

I would definitely voice concern to HR, etc.

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Re: Why would a CPFA recommend high fee funds?

Post by HomeStretch » Thu Nov 14, 2019 2:29 pm

Your company should be very leery of offering predominantly high ER funds in its 401k plan. There have been lawsuits due to this in recent years.

Who is the company person responsible for the 401k plan (likely CFO or VP Finance)? While it can make sense to use a fiduciary advisor to make fund choice recommendations, ultimately the company has the final approval. Consider meeting with this company person to discuss the fund choices and to have a list with specific recommendations to add low-ER funds along the lines of a US total stock market fund or S&P 500, International total stock market fund, a US total bond or intermediate bond fund, and a variety of target date funds.

Be careful what you say about the CPFA and his/her fund recommendations. It often turns out the s/he is some executive’s family member or close friend.
Last edited by HomeStretch on Thu Nov 14, 2019 2:31 pm, edited 1 time in total.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 2:31 pm

Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
Dottie, also this guy isn't the 457 provider, he just recommends the funds that we must use, to the provider. I don't think he is getting a kick back but who knows.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 2:32 pm

HomeStretch wrote:
Thu Nov 14, 2019 2:29 pm
Your company should be very leery of offering predominantly high ER funds in its 401k plan. There have been lawsuits due to this in recent years.

Who is the company person responsible for the 401k plan (likely CFO or VP Finance)? While it can make sense to use a fiduciary advisor to make fund choice recommendations, ultimately the company has the final approval. Consider meeting with this company person to discuss the fund choices and to have a list with specific recommendations to add low-ER funds along the lines of a US total stock market fund or S&P 500, International total stock market fund, a US total bond or intermediate bond fund, and a variety of target date funds.

Be careful what you say about the CPFA and his/her fund recommendations. It often turns out the s/he is some executive’s family member or close friend.
Hi Homestretch. I did that. My HR person is making me talk to this guy. I speak with him Monday. I'm trying to get my ducks in a row before then.

My employer is a school district. So hopefully there isn't any funny business going on...
Last edited by fortfun on Thu Nov 14, 2019 2:33 pm, edited 1 time in total.

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Re: Why would a CPFA recommend high fee funds?

Post by Dottie57 » Thu Nov 14, 2019 2:32 pm

fortfun wrote:
Thu Nov 14, 2019 1:42 pm
Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
He is supposed to be a "fiduciary" CFP
https://alphacmg.com/team-member/mark-ell
Doesn’t look like it from the list of funds selected. Find out how he makes his money. Bet it is partially from the funds he selects.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 2:35 pm

JAZZISCOOL wrote:
Thu Nov 14, 2019 2:06 pm

I would definitely voice concern to HR, etc.
I did. HR is asking me to talk to this guy about what I recommend. I'm sure he will say my low fee funds are no good.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 2:36 pm

willthrill81 wrote:
Thu Nov 14, 2019 2:05 pm
fortfun wrote:
Thu Nov 14, 2019 1:42 pm
Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
He is supposed to be a "fiduciary" CFP
https://alphacmg.com/team-member/mark-ell
Sadly, being a fiduciary often doesn't mean much. Also, it can be legally meaningless in some situations, where an advisor must be a fiduciary with certain accounts (e.g. 401k and IRA) but not with other accounts (e.g. taxable).

Further, being a fiduciary does not mean that the advisor does not have potentially strong conflicts of interest (e.g. moving assets under their AUM for the fee, recommending very low withdrawal rates for retirees for the same reason).
Thing is, he isn't with Empower. He is a third party that selects our funds.

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Re: Why would a CPFA recommend high fee funds?

Post by Dottie57 » Thu Nov 14, 2019 2:37 pm

fortfun wrote:
Thu Nov 14, 2019 2:31 pm
Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
Dottie, also this guy isn't the 457 provider, he just recommends the funds that we must use, to the provider. I don't think he is getting a kick back but who knows.
I can’t imagine a fiduciary selecting these funds. I truly believe he gets money somewhere for selecting those funds. Or else he is incredibly stupid.

Until you know how he is paid.....
Last edited by Dottie57 on Thu Nov 14, 2019 2:38 pm, edited 1 time in total.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 2:37 pm

anon_investor wrote:
Thu Nov 14, 2019 1:55 pm
Wow that is terrible, not even a low cost S&P 500 index fund (even in the crappy 401ks at prior employers there was always that). If I were you I would just buy those two vanguard funds, and in your TIRA/Roth IRA buy a large cap fund to offset (to approximate the Total U.S. Stock Market).

Just google searched it but, the organization that issues the CPFA says (https://napacpfa.org/):
"Plan advisors who earn their CPFA demonstrate the expertise required to act as a plan fiduciary or help plan fiduciaries manage their roles and responsibilities."

Maybe that guy is NOT a fiduciary, he just advises the plan fiduciary? Meaning he is getting "mucho dinero" :moneybag :moneybag :moneybag !
Yes, but he isn't with empower. He is a third party that selects our funds. Strange?

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Re: Why would a CPFA recommend high fee funds?

Post by HomeStretch » Thu Nov 14, 2019 2:40 pm

Consider:
1. Have the company decision-maker in the meeting or on the call with you.
2. You might want to find a white paper or two from Vanguard if there is one about how high ERs/fees are bad
3. Have the names handy of the companies/universities that have recently lost lawsuits brought by employees over 401k plans and fees.
4. Ask how the CPFA is compensated
5. Have a comparison of the low ER fund you are comparing to the comparable fund the CPFA is recommending (ER, returns, etc.)

Good luck. You might try enlisting the CFO too (without alienating the HR person) if the HR person doesn’t seem too savvy about this.

It’s not strange to use the fiduciary. Companies do this for expert help and as a liability CYA.
Last edited by HomeStretch on Thu Nov 14, 2019 3:00 pm, edited 1 time in total.

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Re: Why would a CPFA recommend high fee funds?

Post by mhalley » Thu Nov 14, 2019 2:43 pm

This post contains a sample letter to campaign for a better 401k. You might need to edit the part about spartan funds.
viewtopic.php?t=7573

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Re: Why would a CPFA recommend high fee funds?

Post by mycal75 » Thu Nov 14, 2019 2:46 pm

Yes...contact HR first...then the third party provider...

Is there such a thing as the "ERISA Police"?

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Re: Why would a CPFA recommend high fee funds?

Post by JAZZISCOOL » Thu Nov 14, 2019 2:51 pm

fortfun wrote:
Thu Nov 14, 2019 2:35 pm
JAZZISCOOL wrote:
Thu Nov 14, 2019 2:06 pm

I would definitely voice concern to HR, etc.
I did. HR is asking me to talk to this guy about what I recommend. I'm sure he will say my low fee funds are no good.
You can discuss with them this great 2007 post by Taylor Larimore (Advisory Board member):

Taylor Larimore
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Five Nobel Laureates Recommend The Market Portfolio

Post by Taylor Larimore » Fri Jul 12, 2019 10:01 pm
Bogleheads:

When I am undecided what to do, I listen to genuine experts like these Nobel Laureates:

Eugene Fama: "Whether you decide to tilt toward value depends on whether you are willing to bear the associated risk...The market portfolio is always efficient...For most people, the market portfolio is the most sensible decision."

Harry Markowitz: "A foolish attempt to beat the market and get rich quickly will make one's broker rich and oneself much less so."

Paul Samuelson: "The most efficient way to diversify a stock portfolio is with a low-fee index fund. Statistically, a broadly based stock index fund will outperform most actively managed equity portfolios."

William Sharpe: "You may think your opinion is superior, but it pays to be humble, investing in the market rather than trying to beat it."

Robert Shiller: "A portfolio approximating the market may be the most important portfolio."
John Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk. -- In my view, owning the market and holding it forever is the ultimate strategy for winners.
The Three-Fund (Market) Portfolio

Best wishes
Taylor

How can a reasonable fiduciary argue with this???? :?

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Re: Why would a CPFA recommend high fee funds?

Post by MarkRoulo » Thu Nov 14, 2019 2:53 pm

fortfun wrote:
Thu Nov 14, 2019 2:35 pm
JAZZISCOOL wrote:
Thu Nov 14, 2019 2:06 pm

I would definitely voice concern to HR, etc.
I did. HR is asking me to talk to this guy about what I recommend. I'm sure he will say my low fee funds are no good.
You might want to focus on the S&P500 index fund. Vanguard offers one with a 0.04% expense ratio (vs the one in your plan at 0.54%).

I don't think there is much case to be made that the Vanguard S&P500 index fund is no good.

And your fund choices already include Vanguard, so ...

It would be nice to fix the other ones, too, but if you can just get a reasonable S&P500 index fund
you can (mostly) work around the other nonsense. If you can get the S&P500, maybe go for a Total
Bond Market index fund, too.

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Re: Why would a CPFA recommend high fee funds?

Post by Makefile » Thu Nov 14, 2019 3:01 pm

Maybe you could play dumb and ask if there is a way to add the Vanguard Large-Cap Index Fund to go along with mid and small, rather than making it immediately about the S&P 500 fund and why its expense ratio is so high.

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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 3:02 pm

MarkRoulo wrote:
Thu Nov 14, 2019 2:53 pm
fortfun wrote:
Thu Nov 14, 2019 2:35 pm
JAZZISCOOL wrote:
Thu Nov 14, 2019 2:06 pm

I would definitely voice concern to HR, etc.
I did. HR is asking me to talk to this guy about what I recommend. I'm sure he will say my low fee funds are no good.
You might want to focus on the S&P500 index fund. Vanguard offers one with a 0.04% expense ratio (vs the one in your plan at 0.54%).

I don't think there is much case to be made that the Vanguard S&P500 index fund is no good.

And your fund choices already include Vanguard, so ...

It would be nice to fix the other ones, too, but if you can just get a reasonable S&P500 index fund
you can (mostly) work around the other nonsense. If you can get the S&P500, maybe go for a Total
Bond Market index fund, too.
Yes, bonds are a special concern for me. I'd like to draw from my 457 after early retirement (at 51). I need a good TDF, or a way to make a good 3 fund portfolio. Right now, I'm 50% small and 50% mid cap, which is way too risky. I've got large cap in another account.

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Re: Why would a CPFA recommend high fee funds?

Post by Stinky » Thu Nov 14, 2019 3:17 pm

HomeStretch wrote:
Thu Nov 14, 2019 2:40 pm
Consider:
1. Have the company decision-maker in the meeting or on the call with you.
2. You might want to find a white paper or two from Vanguard if there is one about how high ERs/fees are bad
3. Have the names handy of the companies/universities that have recently lost lawsuits brought by employees over 401k plans and fees.
4. Ask how the CPFA is compensated
5. Have a comparison of the low ER fund you are comparing to the comparable fund the CPFA is recommending (ER, returns, etc.)

Good luck. You might try enlisting the CFO too (without alienating the HR person) if the HR person doesn’t seem too savvy about this.

It’s not strange to use the fiduciary. Companies do this for expert help and as a liability CYA.
This is excellent advice.

It’s so strange that HR would send YOU to meet with consultant. And it’s bizarre that HR wouldn’t come along.

OP, let us know how this turns out.
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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 4:06 pm

Stinky wrote:
Thu Nov 14, 2019 3:17 pm
HomeStretch wrote:
Thu Nov 14, 2019 2:40 pm
Consider:
1. Have the company decision-maker in the meeting or on the call with you.
2. You might want to find a white paper or two from Vanguard if there is one about how high ERs/fees are bad
3. Have the names handy of the companies/universities that have recently lost lawsuits brought by employees over 401k plans and fees.
4. Ask how the CPFA is compensated
5. Have a comparison of the low ER fund you are comparing to the comparable fund the CPFA is recommending (ER, returns, etc.)

Good luck. You might try enlisting the CFO too (without alienating the HR person) if the HR person doesn’t seem too savvy about this.

It’s not strange to use the fiduciary. Companies do this for expert help and as a liability CYA.
This is excellent advice.

It’s so strange that HR would send YOU to meet with consultant. And it’s bizarre that HR wouldn’t come along.

OP, let us know how this turns out.
I agree. I really can't understand why we actually pay someone to give us this terrible advice. I will have the above information at my disposal and let the group know how it turns out. Our state pension actually provides a 457 with excellent fund choices. Sadly, my district has opted for Empower retirement and for this "fiduciary" adviser to select the funds. Uggh.

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Re: Why would a CPFA recommend high fee funds?

Post by HomeStretch » Thu Nov 14, 2019 4:12 pm

If the HR person isn’t attending with you, be prepared (worst case) for the CPFA to not be “persuaded” despite your facts/eloquence to change his recommendations and for the HR person to decide to go with the “expert” recommendation. If you get that impression, perhaps you can draft a concise memo along the lines of the “advocating for a better 401k” suggested above with your fund requests, etc. and proactively send it to the HR person with a cc: to any others you know that can influence the fund choice decision.

Good luck. You and your co-workers deserve better.

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Re: Why would a CPFA recommend high fee funds?

Post by surfstar » Thu Nov 14, 2019 4:15 pm

Previous employer had a 457 with the lowest ER index funds at 0.95
Current employer is 0.45

Both local gov't. Quite common. The previous one had/has a good excuse - their general fund still pays 4% fixed. That is our "bond" holding.

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Re: Why would a CPFA recommend high fee funds?

Post by fposte » Thu Nov 14, 2019 4:16 pm

almostretired1965 wrote:
Thu Nov 14, 2019 2:01 pm
Wow, I'm shocked that a S&P500 Index fund can get away with a 0.5% expense ratio.
It's an insurance company. There's always vigorish with an insurance company. Empower is also a different arm of Great-West, so their high-ER funds are likely to be part of the package for any employers using Empower.

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Re: Why would a CPFA recommend high fee funds?

Post by BogleMelon » Thu Nov 14, 2019 4:33 pm

OP, if this makes you better, my 401K is worse. Mine has no Vanguard fund. The only index fund and the lowest in terms of ER, is an S&P 500 fund with ER of 0.60%. The rest is active crappy funds.
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Re: Why would a CPFA recommend high fee funds?

Post by fortfun » Thu Nov 14, 2019 4:46 pm

HomeStretch wrote:
Thu Nov 14, 2019 4:12 pm
If the HR person isn’t attending with you, be prepared (worst case) for the CPFA to not be “persuaded” despite your facts/eloquence to change his recommendations and for the HR person to decide to go with the “expert” recommendation. If you get that impression, perhaps you can draft a concise memo along the lines of the “advocating for a better 401k” suggested above with your fund requests, etc. and proactively send it to the HR person with a cc: to any others you know that can influence the fund choice decision.

Good luck. You and your co-workers deserve better.
Thanks Homestretch. I sent this letter to our benefits person and teacher's union president earlier this week. In the letter, I compare the current 457 plan, with our current 401k plan. Our current 401k is thru the state's pension system and is very good. Coincidentally, our state pension offers a 457 with the same funds. The district has opted not to use it for some crazy reason. Here is the letter (I excluded names to protect the innocent):

Image

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Re: Why would a CPFA recommend high fee funds?

Post by GoldenFinch » Thu Nov 14, 2019 4:49 pm

The reason these finance people get away with putting terrible fund choices in retirement plans is because so few people are educated about finance, fees, etc, and they can usually get away with it without anyone complaining. So complain a lot and hopefully you will be successful and your employer will have a good plan in place. Expect a lot of push back because there is money to be made on those high fee funds for somebody and they won’t want to give it up.

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Re: Why would a CPFA recommend high fee funds?

Post by Stormbringer » Thu Nov 14, 2019 4:53 pm

My wife has a similar situation, with a slew of horrible funds with fees as high as 1.37%. I suspect the funds are selected by the administrator because they pay some sort of a commission, but I'm not sure. The only plausible explanation I can come up with is that someone is lining their pockets, but I haven't been able to put my finger on it. I thought it would show up as 12b-1 fees, but the prospectus doesn't indicate any, so there must be some backdoor way of compensating the administrator.
"Compound interest is the most powerful force in the universe." - Albert Einstein

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Re: Why would a CPFA recommend high fee funds?

Post by Stinky » Thu Nov 14, 2019 4:54 pm

fortfun wrote:
Thu Nov 14, 2019 4:46 pm
HomeStretch wrote:
Thu Nov 14, 2019 4:12 pm
If the HR person isn’t attending with you, be prepared (worst case) for the CPFA to not be “persuaded” despite your facts/eloquence to change his recommendations and for the HR person to decide to go with the “expert” recommendation. If you get that impression, perhaps you can draft a concise memo along the lines of the “advocating for a better 401k” suggested above with your fund requests, etc. and proactively send it to the HR person with a cc: to any others you know that can influence the fund choice decision.

Good luck. You and your co-workers deserve better.
Thanks Homestretch. I sent this letter to our benefits person and teacher's union president earlier this week. In the letter, I compare the current 457 plan, with our current 401k plan. Our current 401k is thru the state's pension system and is very good. Coincidentally, our state pension offers a 457 with the same funds. The district has opted not to use it for some crazy reason. Here is the letter (I excluded names to protect the innocent):

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Nice letter. Well written.
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willthrill81
Posts: 13878
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Why would a CPFA recommend high fee funds?

Post by willthrill81 » Thu Nov 14, 2019 5:06 pm

fortfun wrote:
Thu Nov 14, 2019 2:36 pm
willthrill81 wrote:
Thu Nov 14, 2019 2:05 pm
fortfun wrote:
Thu Nov 14, 2019 1:42 pm
Dottie57 wrote:
Thu Nov 14, 2019 12:30 pm
He gonna make lots of dinero. Not looking out for investors.
He is supposed to be a "fiduciary" CFP
https://alphacmg.com/team-member/mark-ell
Sadly, being a fiduciary often doesn't mean much. Also, it can be legally meaningless in some situations, where an advisor must be a fiduciary with certain accounts (e.g. 401k and IRA) but not with other accounts (e.g. taxable).

Further, being a fiduciary does not mean that the advisor does not have potentially strong conflicts of interest (e.g. moving assets under their AUM for the fee, recommending very low withdrawal rates for retirees for the same reason).
Thing is, he isn't with Empower. He is a third party that selects our funds.
There's another strong possibility.

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RubyTuesday
Posts: 252
Joined: Fri Oct 19, 2012 11:24 am

Re: Why would a CPFA recommend high fee funds?

Post by RubyTuesday » Thu Nov 14, 2019 5:48 pm

I would be very concerned about the lack of inexpensive bond and TIPs funds, things that I needed in my pretax accounts to balance stocks in my taxable accounts. You literally don’t seem to have access to any safe (mostly treasury) or any inflation linked bond funds.

Is there potentially a good stable value fund not listed here? My DW has a good stable value fund in her govt 457.

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