401K: who manages your company plan?

Our plan is with The Standard. No complaints. They assume all fiduciary responsibility as well

AOK, thank you.

Fidelty

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I can't even figure out what they're charging.

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the funds you are invested in have expense ratios. That is what you pay on an annual basis. Ex. You have $100,000 invested into a fund with an expense ratio of .79%.

You are paying $100,000 x .0079 = $790 ANNUALLY

The fund will just take this .79% out of your account and pay for plan expenses. Ex. Administration, marketing and advisor compensation

The department of labor is trying get a level fee implemented for retirement plans. They see it as a conflict of interest for advisors. They can advise participants into higher fee funds to generate more revenue for themselves, also the participants in the funds with high expense ratios are floating the plan for people in lower cost funds. A level asset fee gets rid of this issue. I hope that makes sense and helps you understand how plan fees work.

Vanguard

Fidelity with over 300 options.

This is not entirely true. They are trying to implement a fiduciary standard for everyone in retirement plans, including IRA's. For there to be a fiduciary standard the plan must be fee based and not brokerage class as you mentioned, so as there not to be a conflict of interest when the investments of the plan need to be changed for the individual or the whole. Fyi, you also have expense ratios on the institutional class funds inside a fee based plan.

The issue is, when it comes to the small investor for example in a simple Ira who is putting $25/mo into the plan.. Or someone who is wanting to open a Roth IRA at a brokerage firm for the first time. So since you've now implemented a fee based structure then the firms themselves will have to implement a minimum they will be willing to work with to open an account for what is profitable for them, say $25-50k for example. Again your killing the small investor and middle investor bc you're turning them away and not able to provide advice.

For the record I seriously doubt this legislation gets passed anytime soon.

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This is not entirely true. They are trying to implement a fiduciary standard for everyone in retirement plans, including IRA's. For there to be a fiduciary standard the plan must be fee based and not brokerage class as you mentioned, so as there not to be a conflict of interest when the investments of the plan need to be changed for the individual or the whole. Fyi, you also have expense ratios on the institutional class funds inside a fee based plan.

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Well done.

Vangaurd

You made that your premise that brokers selected brokerage shares for higher expense ratios.

For the record, fee based only helps the advisor, we get paid more lol. I'm not saying I'm against it by any means as I do think it will eliminate the conflict of interest. But to say that people will have a better retirement because of a fee based only structure is wrong.