A million bucks over 30 years; that’s what Comedian John Oliver claims it will cost 401(k) participants in fees. The “Daily Show” alum and current host of “Last Week Tonight” turned his attention to 401(k)s recently, and the results weren’t pretty.
Oliver pointed to three issues he said are hurting consumers: Financial advisors without a fiduciary responsibility (until recently), high fees that compound over time, and underperforming actively managed funds.
“The entire retirement plan industry is a potential minefield,” he said in the segment. “You need to pay attention.”
As CNBC notes, those are issues Oliver’s team encountered personally.
“In setting up a 401(k) for show employees, he said, they realized their John Hancock-sponsored plan charged asset management fees of 1.69 percent, on top of a $24 per-person annual fee and other fund fees,” according to the network. “An unnamed intermediary broker (who told Oliver’s team he was not a fiduciary, i.e. required to work in their best interest) would receive 1 percent the first year and 0.50 percent thereafter.”
Oliver said the show is covering the fees for its employees, and is also leaving both John Hancock and the broker.
In a statement provided to CNBC.com, John Hancock spokeswoman Melissa Berczuk said the firm stands by the services it provides.
“We feel that the analysis and presentation of fees and services by the show is flawed and misleading,” she said.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
