Comments on: H&R Block’s Express IRA Lawsuit

By: Phil

Phil — Fri, 17 Mar 2006 07:05:03 +0000

One odd thing about the case is that H&R could have made _more_ money off of people if they had put them either in a Treasury bond fund and charged them a larger percentage or (the wicked option), but them in a high-fee actively managed stock fund. H&R made such small amounts of money off of these accounts (about $10 million a year) that it doesn’t seem they would even bother having them. The two examples they give in the article are of one-time contributions of $300, which no other reputable company I know of would even allow. It just seems like such a bad product for both parties that it would be a deliberate attempt to scam people.

By: Wayne

Wayne — Fri, 17 Mar 2006 02:20:05 +0000

Anybody who feels that a money market fund is appropriate for retirement saving is doomed to be greeting shoppers at Wal-Mart in their golden years.

By: supermom_in_ny

supermom_in_ny — Fri, 17 Mar 2006 01:55:38 +0000

They got me two years ago. I went to file my taxes and I got a very large amount of money. H&R Block had sent me two coupons. One was for the tax services and another was to open an express IRA account. I didn’t have any retirement savings at my employment, so I opened it. I didn’t really read the fine print (which I usually do).

I knew something was wrong when I opened my statement at the year mark and I had less money. Now how does that happen? I tried to find an explanation as to why I had less money, but I couldn’t find it. Ultimately, I don’t regret it because I lost my job shortly after that and that IRA is the only money I have saved. I refuse to touch it. It isn’t much, but it will be a little something to start a savings with.

I’m glad to read that they may suffer the consequences for misleading customers. I hope I at least get some interest out of it!