Friday, May 15, 2015

Dear departing News & Record reporter Amanda Lehmert

Good luck in your future endeavors.

As a parting gift, I would like to make the following recommendations for your Berkshire Hathaway 401k rollover to a discount brokerage, low cost, no-annual-fee account of your choice, which, since this is a gift, would involve no compensation between us.

If you have $100,000 in Warren Buffett's 401k plan, mirroring the U.S. Federal Government's Thrift Savings Plan (TSP) with similar funds would probably save you at least $800 per year in fees scalped by the financial industry.

Dramatically lowering your costs should substantially increase your returns over time, effectively providing a "raise" for you and Joe Killian via less hard earned money covertly leaking its way to Wall Street via convoluted, overpriced fees and transaction disclosures.

The lower the expenses, the higher returns should be, the more money should accumulate.

The TSP's five funds, which can easily be replicated in a standard discount brokerage account for at least 80% less than you're currently paying at BH Media;

1.  The C Fund, an index fund based on Standard & Poor's (S&P) 500.

2.  The S Fund, an index fund based on the Dow Jones U.S. Completion TSM Index, comprised of stocks of small to medium-sized U.S. companies not included in the S&P 500.

3.  The I Fund, with stocks of 21 developed countries matching the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) index.

4.  The F Fund, a debt related bond index fund with government, corporate, and mortgage-backed bonds matching Barclays Capital U.S. Aggregate Bond Index.

5.  The G Fund, an intra-governmental securities Stable Value fund.

Vangaurd Group founder John Bogle said: “A person saving for retirement who chooses low-cost investments could have a standard of living throughout retirement more than 65% higher than that of a comparable investor in high-cost investments” in testimony before the Senate Finance Committee in 2014.

Bogle assumed expenses accounted for about one percentage point of the cost difference between actively managed funds and index funds.

As long as active investment managers are measured by index based benchmarks, low cost index funds will probably outperform relatively higher cost active managers with less risk over time.

Remember, this is the same information you were privy to and didn't report in 2013, when you met with me and City of Greensboro staff including finance director Rick Lusk about lowering their retirement plan costs, which you didn't/weren't allowed to report.

It's also the same information News & Record publisher Jeff Gauger declined to report after I met with him twice on the same subject, and who agreed with essentially everything I said about investment costs and returns.

It's also the same information your husband Joe Killian heard in a Greensboro City Council work session which the News & Record and the Rhino Times didn't report, costing Greensboro's employees more than $1,500,000 since 2013, when you were first informed.

So congratulations on the new gig.

I wish you and Joe a prosperous future, even though you both, along with Jeff Gauger etc... didn't bother telling thousands of readers how to end up with more money in their pockets in one of the most poverty stricken localities in the country, in complicity with City staff and Greensboro's City Council.

Emailed to dennis.creamer, keeley.duckworth, allen.johnson, jeff.gauger,, carolyn.booth, margaret.moffett, dick.barron, danielle.battaglia, steven.doyle, marquita.brown, rob.brown, kenwyn.caranna, janice.carmac, jonnelle.davis, dawn.kane, jennifer.fernandez, cathy.frail, joe.gamm, morgan.josey, kymberli.hagelberg, ed.hardin, teresa.prout, taft.wireback, sarah.williamson, robyn.taylor,  dgclark, john.newsom, nancy.mclaughlin, robert.lopez, diane.lamb, susan.ladd, joe.killian, mike.kernels, cindy.loman, amanda.lehmert