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403(b) Theft: How Employees and Employers Get Bilked
403bwise
[Opinion] Sept. 24, 2009
Excerpt: Quite simply, participants in expensive plans are losing A LOT of money. How much? How about $875,000 in some cases? Consider? If a participant invested $10,000 per year (inflation adjusted) for 40 years, earned a 9 percent return (before fees), he or she would accumulate approximately $2.4 million. If fees were along the lines of the plan I just described (2.08 percent + additional advisor fee of 1 percent), this investor would pay more than $875,000 in fees.
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