One of the great advantages of working for “the man” is retirement benefits, including the possibility of contributing to a 401(k) plan that offers you the chance to save for retirement with pre-tax dollars.
But are all 401(k) plans created equal? Certainly not. Right now, Fidelity Investments is being sued by some of its current and former employees due to the nature of its plan. According to the lawsuit, Fidelity’s plan funnels employees into investments that have high costs, and might not provide the best bang for the buck. (Fidelity plans to fight the suit, and counters that there are plenty of low-cost choices available with its plan.)
Seeing a lawsuit like this hit one of the biggest providers of workplace retirement plans in the country should make you wonder: How does your own plan stack up?
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