PBS Drops Another Bombshell: #WallStreet Is Gobbling Up Two-Thirds of Your 401(k)

[BlueStreak]

6. Are you saying that the load the Morningstar (and others) report is not accurate?

This article claims the "average" is 1.6%.

I just did a Morningstar search for mid-cap growth funds that have a 5 star rating. As top performers, one would assume they are the most likely to justify high expenses. The average expense rating was 1.36% and one-third of them had expenses of 1% or less. Only one of them (RYCKX) had expenses of 2% or more.

And that is a category that has among the most aggressive management. When you look at index funds -- and everybody who is invested in stocks should have some of their money in a broad index fund -- the fees are much, much lower. See this article:
http://www.smartmoney.com/invest/markets/best-and-worst-sp-500-index-funds-by-cost-23549/

Once again, Rydex is the most expensive -- sounds like a ripoff outfit, and the exception that does fit the PBS thesis. 2.25% for an SP500 index fund is criminal. Those people should be in jail. But the normal fee load for an S&P index fund is more line 2/10 of a percent.

Let the buyer beware. People who don't understand management fees should not buy these products.

Anyway, the PBS report is mostly hogwash.