"...If Jane is lucky enough to have some retirement savings, she is very possibly getting taken for a ride there, too. Epstein notes that if you have a 401(k) plan and your employer has hired an asset management firm to manage your funds, the costs are very high compared to index funds or low-cost managed funds. Often 2 percent is skimmed right there.
Just like Say Yes to Education
and High Point and Greensboro's Community Foundations
is doing with money meant for Guilford County student scholarships
which the News and Record won't report, as Warren Buffett is one of those skimming
“If Jane had put $10,000 into an index fund instead of an actively managed fund,” he notes, “then after 30 years, she would have 44 percent higher wealth, and after 40 years, she would have 65 percent higher wealth. After 35 years or so, Jane loses half of the wealth that could have been hers without the high fees paid through actively managed funds.”
An employee is often given the illusion of choice between different funds, but in reality they may all have high fees and do no better — or even worse — than the overall stock market. Even if Jane has the choice of an index fund, notes Epstein, she may still get swindled. If the employer has set things up with an asset manager, fees on index funds can still be higher than if you did it yourself.
“There’s very little requirement that these asset managers provide real, clear, upfront information about the fees, about the returns relative to alternatives, and so on.” He explains that managers and advisors typically don’t even have fiduciary responsibility to Jane and her fellow employees. In other words, they aren’t obligated to do what’s in her best interest and they may well have conflicts of interest, luring people into investments that produce the biggest fees for themselves.
The asset management company, the broker, or the manager is richer; Jane is poorer..."
http://www.nakedcapitalism.com/2016/07/how-much-do-shady-financial-practices-cost-you-exactly.html
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"What John Oliver learned [which Greensboro's City Council and City Staff Didn't] while setting up a 401(k) plan for his employees"
"John Oliver, who has famously exposed the questionable practices of various industries on his HBO show “Last Week Tonight” ...recently took a look at the onerous fees that some retirement plans charge.
When presented with the opportunity to do right by City of Greensboro's employees,
Tony Wilkins, Marikay Abuzuaiter, Nancy Vaughan, Mike Barber, Yvonne Johnson,
Jamal Fox, Sharon Hightower, Rick Lusk, Mary Vigue, Connie Hammond, Jim Westmoreland
and Zack Matheny, who was a stockbroker and knew better,
supported cronies connected to the financial industry
instead of more than 2,800 employees who are still getting skimmed off of by ICMA-RC,
the administrator for the City's 457 retirement plan.
“As a favor to your future self, it is worth watching this for 20 minutes because you could easily make small mistakes that could seriously cost you down the line,” he says toward the beginning of the June 12 episode.
Those current and former City employees mentioned above are thieves
They stole from those who they are supposed to look out for
He goes on to say that most actively managed funds don’t beat the market, and that anyone can call himself an investment adviser whether he has official credentials or not. And he explains what it means when an adivser is bound by a fiduciary standard: “It’s currently legal for advisers to put their own interests ahead of yours unless they’re a fiduciary.”...
The News and Record refused to look into Greensboro's retirement plan
and North Carolina State's retirement plans
for the benefit of Warren Buffett, who owns the paper and Wells Fargo
of which Berkshire Hathaway owns more than 10%
...he dedicates much of the show to what he learned after asking his production company to set up a 401(k) plan for his employees. Namely, that there are a lot of fees.
Susan Ladd betrayed City of Greensboro employees
and our community by inaction, while she tries over and over to save some trees
instead of thousands of residents millions over time
“Compound interest works both ways,” he says. The company managing the show’s 401(k), John Hancock, gave him and his staff a presentation. After looking at the plan’s paperwork, “Last Week Tonight” realized there were the following fees: A combined 1.69% fee, plus a $24 per person per year fee, plus a fee for a broker who was acting as an intermediary. The broker received 1% of assets the first year and 0.5% every year after that. Oliver points out that if his 35 employees saved $6,000 a year for 30 years, it would cost them $1 million in fees overall. In addition, the broker said he was not a fiduciary, and when he sent the show a table showing how much the plan could grow, he was off by more than $10 million because of bad arithmetic, according to Oliver.
ICMA-RC is not considered a fiduciary for Greensboro's employees,
letting City Management including Jim Westmoreland, Mary Vigue, members of ICMA,
mislead and overcharge City participants with the active help of ICMA member Jamal Fox
and the rest of City Council.
...A spokeswoman for John Hancock told MarketWatch via email that the show’s 401(k) plan was placed with it after “an open and rigorous competitive review,” and it was competing against other prominent companies for the account. She said John Hancock disagrees with the way its business practices were characterized.
ICMA-RC doesn't act in the best interests of the City of Greensboro's employees,
but the best interests of ICMA-RC with the help of Council and Staff
“We feel that the analysis and presentation of fees and services by the show is flawed and misleading,” she said, adding, “We believe in the value of the services we provide and feel they add to the success of the plan in helping participants for retirement.”
By not making an endorsement for the NC Treasurer Democratic primary,
Greensboro's News and Record, along with most of the other state papers
fucked hundreds of thousands of municipal employees out of more than $500,000,000 per year
and most don't know.
In the end, Oliver offered five tips for people saving for retirement. You can see these starting around the 18-minute mark of the video, where they are much more humorously presented than they are here:
1. Start saving now
2. Invest in low-cost index funds
The City of Greensboro lied in response to a public records request,
has been caught red handed, and our local press won't report it
for the benefit of local City executives and entrenched City Council incumbents
to the detriment of City employees and they are going to get away with it
because it may harm the financial industry's profit margins.
3. Ask if your adviser is a fiduciary
4. Gradually shift investments from stocks to bonds as you get older
5. Keep your fees under 1%
http://www.marketwatch.com/story/what-john-oliver-learned-while-setting-up-a-401k-plan-for-his-employees-2016-06-13
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The News and Record didn't report how Clayton Homes rips off poor people.
Jeff Gauger didn't report how Wells Fargo makes money from North Carolina's retirement plans.
The News and Record didn't report how mimicking the federal government's Thrift Savings Plan
could save Greensboro's employees more than $500,000 per year,
to preserve Warren Buffett's profitability at the expense of their readers.
Jeff Gauger and friends steal hundreds of millions from their readers
via lies of omission so Warren Buffett can make more money.
Joe Killian and Jeff Gauger betrayed North Carolina's employees
for Warren Buffett
Allen Johnson and Doug Clark betrayed North Carolina's employees
for Warren Buffett
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How to save $20,967,663 for the City of Durham's employees invested in ICMA-RC's 457 retirement plan
http://greensboroperformingarts.blogspot.com/2016/05/how-to-save-20967663-for-city-of.html
Greensboro's News and Record is directly responsible
for North Carolina and the City of Greensboro's employees
paying more for pension and retirement investments than necessary,
as they have known for years and did nothing
Now Mary Vigue is in charge of a legal Ponzi scheme called Say Yes to Education and Say Yes Guilford whose business model skims profits for administrators and vendors meant for college scholarships for Guilford County students with monies donated by local foundations, managed for a profit by the Community Foundation of High Point, and the Community Foundation of Greensboro, who's Walker Sanders lied to get additional taxpayer funding for Greensboro's STPAC with the help of Matt Brown, City Council and City staff, including Rick Lusk.
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The News and Record didn't report how mimicking the federal government's Thrift Savings Plan could save Greensboro's employees more than $500,000 per year, to preserve Warren Buffett's profitability at the expense of their readers.
http://greensboroperformingarts.blogspot.com/2016/04/recent-jeff-gauger-and-news-and-record.html
The City of Greensboro shafted their own employees; "401(k) Fees, Already Low, Are Heading Lower"
http://greensboroperformingarts.blogspot.com/2016/05/the-city-of-greensboro-shafted-their.html
This is what winning reads like for those who oppose the status quo; City of Greensboro ICMA-RC 457 retirement plan edition
http://greensboroperformingarts.blogspot.com/2015/10/this-is-what-winning-reads-like-for.html
Say Yes to Education Red Flag; Mary Vigue; She is about to be in charge of more than $25 million for a 'non-profit' after shafting City of Greensboro employees out of investment fee cuts
http://greensboroperformingarts.blogspot.com/2015/10/say-yes-to-education-red-flag-mary.html
Associated Press misleads for Wall Street; "Correction: Primary-Council Of State story"; Don't expect the News and Record to tell anyone in print
The News and Record and other Warren Buffett owned news outlets
are going to try to take down Ron Elmers for Wall Street profit
instead of more money in North Carolina employee pockets
http://greensboroperformingarts.blogspot.com/2016/03/associated-press-misleads-for-wall.html
http://www.nakedcapitalism.com/2015/12/pensions-investment-editorial-savages-trustees-for-failing-to-perform-fiduciary-duty-over-private-equity-fees.html
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When presented with the opportunity to do right by City of Greensboro's employees, Tony Wilkins, Marikay Abuzuaiter, Nancy Vaughan, Mike Barber, Yvonne Johnson, Jamal Fox and Sharon Hightower supported cronies connected to the financial industry, Jim Westmoreland, Mary Vigue, Rick Lusk and Connie Hammond rather than more than 2,800 employees who are still getting skimmed off of by ICMA-RC, the administrator for the City's 457 retirement plan.
Same thing only different.
When presented with the opportunity to report to the public how the financial industry rips off local investors and retirement plan participants, the News and Record's Joe Killian, Susan Ladd, Stephen Doyle, Jeff Gauger, Margaret Moffet among others including the Rhino Times John Hammer and the Triad Business Journal's Mark Sutter didn't lift a finger for their readers against the parasitic interests who prey upon their readers.
These folks let the banking and investment system steal from you.
And they know it.
And they didn't bother to tell you, as it would upset their benefactors.
Now Mary Vigue is in charge of a legal Ponzi scheme called Say Yes to Education and Say Yes Guilford whose business model skims profits for administrators and vendors meant for college scholarships for Guilford County students with monies donated by local foundations, managed for a profit by the Community Foundation of High Point, and the Community Foundation of Greensboro, who's Walker Sanders lied to get additional taxpayer funding for Greensboro's STPAC with the help of Matt Brown, City Council and City staff, including Rick Lusk.
Rick knew better and went along to keep his job as far as I can tell.
He must throw up a little every time he has to go along with the facade.
"The city has not responded to a 29-question inquiry
concerning George Hartzman’s proposal for the city’s 457 retirement plan,
which remains unanswered even after anonymous city employees
sent a letter to the city
and Councilman Tony Wilkins’ inquiries on July 1.
Hartzman contends the plan
could save Greensboro’s employees more than $500,000 per year,
and the city won’t confirm or deny the validity of his arithmetic."
How Wall Street grabs $17 billion from investors’ portfolios every year
"...In its permissiveness toward non-fiduciary financial advisers, the current regulatory environment reflects its imbalance. Funded by the very corporations it’s charged with overseeing, the Financial Industry Regulatory Authority supervises the 90% or so of financial advisers that sell what’s best for them instead of investors...
ICMA-RC is not considered a fiduciary
for Greensboro's employees,
letting City Management including Jim Westmoreland,
Mary Vigue, members of ICMA,
mislead and overcharge City participants
with the active help of ICMA member Jamal Fox
and the rest of City Council.
...[The Financial Industry should] once and for all prohibit the practice of revenue sharing, in which mutual fund companies pay 401(k) [and 457] plan administrators or sponsors [ICMA-RC] to put their funds on retirement plan menus. Stark conflicts of interest like revenue sharing are not acceptable, especially when they prey on a particularly vulnerable group like retirement savers....
ICMA-RC doesn't act in the best interests
of the City of Greensboro's employees,
but the best interests of ICMA-RC
with the help of Jim Westmoreland,
Mary Vigue, Connie Hammond, Rick Lusk, Larry Davis
and Jamal Fox.
Bobby Monks is the former Chairman of Institutional Shareholder Services. His book with Justin Jaffe and Bree LaCasse, “Uninvested: How Wall Street Hijacks Your Money — and How to Fight Back,” was published by Penguin Random House in August."
http://www.marketwatch.com/story/how-wall-street-grabs-17-billion-from-investors-portfolios-every-year-2015-09-14?dist=beforebell
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A couple financial experts on the City of Greensboro's ICMA-RC 457 plan
The fine print on "VT", an acronym for Vantage Trust, from Greensboro's ICMA-RC plan;
"Section 401 or 457 plans invest in these “underlying” funds through the funds of the VantageTrust (“VT Funds”). Reference to such underlying mutual fund ticker symbols or other non-performance data by VT Funds is for reference only and NOT reflective of the returns of the corresponding VT Funds [due to VT layered on fees].
Because of revenue sharing agreements
The revenue amounts listed for VT Vantagepoint Funds and the VT PLUS Fund include all compensation paid by the fund to ICMA-RC and/or its affiliates.
City of Greensboro executive management
knows they are letting ICMA-RC shaft their own employees
and didn't/won't do anything about it.
The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC.
Which is a conflict of interest
fully supported via inaction by Jim Westmoreland,
Mary Vigue, Connie Hammond, Rick Lusk, Larry Davis
and Jamal Fox.
ICMA-RC or its affiliates receive payments [kickbacks to ICMA-RC via VT] from third-party mutual funds that underlie certain VantageTrust Funds that may be available for investment through your plan. These payments are for services rendered by ICMA-RC or its affiliates to plans and participants, and are in the form of 12b-1 fees, service fees, compensation for sub-accounting and other services provided by ICMA-RC or its affiliates."
Otherwise known as revenue sharing agreements
which pick the pockets of Greensboro's employees
with the help of Jim Westmoreland, Mary Vigue, Connie Hammond,
Rick Lusk, Larry Davis, Jamal Fox and the rest of City Council
who not only don't mind ICMA-RC skimming from City employees,
but have actively worked to assure the status quo remains the same.
ICMA-RC, located in the same Washington D.C. building as ICMA, was created by the International City/County Management Association (ICMA) in 1972. "its 10-member board includes four current or retired government officials and the executive director of the ICMA (as of 9/22/2010), who also is a retired government official. The ICMA-RC pays the ICMA a licensing fee...", like Nationwide pays the National Association of Counties for the same thing only different.
According to ICMA-RC's 2012 IRS form 990, Robert O'neal, ICMA's Executive Director, serves as a paid director of ICMA-RC.
San Antonio’s Assistant City Manager and ICMA member Frances Gonzalez serves on ICMA-RC's board. San Antonio has $254,377,728 of City employee funds with ICMA-RC.
Like Greensboro's Mary Vigue.
Decatur, Georgia’s City Manager and ICMA member Peggy Merriss serves on ICMA-RC's board as Decatur offers an overpriced ICMA-RC 457 retirement plan.
Like Greensboro's Jim Westmoreland.
"Civil Response in writing please" ICMA members Jim Westmoreland and Mary Vigue trying to play Greensboro mayoral candidate Devin King for a fool, and losing
http://greensboroperformingarts.blogspot.com/2015/09/civil-response-in-writing-please-icma.html
An email from Greensboro City Council mayoral candidate Devin King to the City's Jim Westmoreland, David Parrish, Chris Wilson, Wesley Reid and Mary Vigue
http://greensboroperformingarts.blogspot.com/2015/09/an-email-from-greensboro-city-council.html
Some recent recent economic posts and other locally business related links, as we descend into financial instability and recession/depression
http://greensboroperformingarts.blogspot.com/2015/08/some-recent-recent-economic-posts-and.html
A July 1, 2015 open letter to Greensboro City Councilman Tony Wilkins from some anonymous City employees invested in ICMA-RC's 457 Retirement Plan, who fear retaliation, without a response from the City
http://greensboroperformingarts.blogspot.com/2015/07/an-open-letter-to-greensboro-city.html
Zack Matheny misled City of Greensboro employees and Greensboro taxpayers on the plan at a recent City Council Meeting.
http://greensboroperformingarts.blogspot.com/2015/04/maybe-zack-matheny-was-lying.html
Both City of Greensboro Manager Jim Westmorland, Assistant Manager Mary Vigue and Human Resources Director Connie Hammond violated the City's Code of Ethics and misled the public and their own employees concerning the retirement plan.
http://greensboroperformingarts.blogspot.com/2014/11/george-hartzman-believes-city-of.html
Hartzman was told by Joe Killian in front of Susan Ladd there was to be a story on the 457 plan, and their wasn't, as Warren Buffett profits from overcharging retirement plan participants
http://greensboroperformingarts.blogspot.com/2015/05/subject-re-i-was-told-by-joe-killian-in.html
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How Greensboro's City Council shafted the City's employees with Zack Matheny's help
http://greensboroperformingarts.blogspot.com/2015/04/how-greensboros-city-council-shafted.html
George Hartzman's ICMA-RC 457 retirement plan presentation, data source and Jodi Riddleberger News and Record article
http://greensboroperformingarts.blogspot.com/2015/02/george-hartzmans-icma-rc-457-retirement.html
From a currently employed ICMA-RC employee on not getting enough extra revenue producing "Managed Accounts"
http://greensboroperformingarts.blogspot.com/2015/01/from-currently-employed-icma-rc.html
Emails between City of Greensboro, Charlotte and some Winston Salem employees and their 457 Retirement Plan Provider
http://greensboroperformingarts.blogspot.com/2015/01/emails-between-city-of-greensboro.html
Please help save $35,122,520 for City of Greensboro employees
http://greensboroperformingarts.blogspot.com/2015/01/please-help-save-35122520-for-city-of.html
City of Greensboro Manager Jim Westmoreland Lying to Tony Wilkins and City Council
http://greensboroperformingarts.blogspot.com/2014/12/city-of-greensboro-manager-jim.html
George Hartzman, presented to Guilford County's School Board, 10/23/2014
http://greensboroperformingarts.blogspot.com/2014/10/george-hartzman-presented-to-guilford.html
This is what winning reads like for those who oppose the status quo; City of Greensboro ICMA-RC 457 retirement plan edition
http://greensboroperformingarts.blogspot.com/2015/10/this-is-what-winning-reads-like-for.html
George Hartzman's ICMA-RC 457 retirement plan presentation, data source and Jodi Riddleberger News and Record article
http://greensboroperformingarts.blogspot.com/2015/02/george-hartzmans-icma-rc-457-retirement.html
Hartzman's Retirement Plan Whistle; City of Greensboro Edition, located on the City's Server
http://greensboroperformingarts.blogspot.com/2015/06/hartzmans-retirement-plan-whistle-city.html
"TriMet's 401(k)-type plan on the screen behind him and said that, outside the
federal government's Thrift Savings Plan, this was "the best I've ever seen."
http://hartzman.blogspot.com/2015/01/trimets-401k-type-plan-on-screenbehind.html
"Administrative fees and the tyranny of compounding costs."
http://hartzman.blogspot.com/2015/01/administrative-fees-and-tyranny-of.html
"Active Funds vs Index Funds 2014: Managed Mutual Funds Underperform
Passive Funds, Continuing Losing Streak"
http://hartzman.blogspot.com/2015/01/active-funds-vs-index-funds-2014.html
From Buck Consultant's ICMA-RC 457 Plan Administration RFP for Contra
Costa County
http://hartzman.blogspot.com/2015/01/from-buck-consultants-icma-rc-457-
plan.html
ICMA-RC Response to the City of Anaheim California's 457 RFP
http://hartzman.blogspot.com/2015/01/from-icma-rc-response-to-city-of.html
Deloitte Defined Contribution / 401(k) Fee Study
http://hartzman.blogspot.com/2015/02/deloitte-defined-contribution-401kfee.html
How Greensboro, North Carolina Executive Management and ICMA-RC lobbyists reacted to Hartzman's Retirement Plan Whistle
http://hartzman.blogspot.com/2014/12/how-jim-westmoreland-mary-vigueand.html
George Hartzman Biographical Information
http://hartzman.blogspot.com/2013/07/george-hartzman-bio-stuff.html
Rolling Stone's Matt Taibbi on George Hartzman's Whistleblower Filing
http://hartzman.blogspot.com/2013/01/matt-taibbi-on-george-hartzmans.html
SEC Whistleblower Evidence
http://hartzman.blogspot.com/2013/02/sec-and-finra-whistleblowerevidence.html
