The biggest failure is that Washington’s lack of action needlessly costs every retirement saver thousands of dollars a year — Susan Seltzer, Founder, Not On My Nickel
Minneapolis, MN (PRWEB) July 11, 2013
Not On My Nickel (http://www.notonmynickel.com) announces a new online investment research and education service in direct response to Washington’s failed efforts to successfully reform the retirement industry. Inaction by Congress, the SEC and Department of Justice has prevented meaningful change for retirement savers.
The breakdown in the government’s highest offices, combined with the inability of the financial services industry to deliver the best-performing mutual funds at a reasonable cost inspired Susan Seltzer, Founder of Not On My Nickel, to establish a simple, easy-to-follow solution for individual investors who are overwhelmed by industry jargon, thousands of poorly performing mutual funds and contradictory fine print disclosures.
“After five years working with Congress and the SEC on behalf of retirement investors, (http://www.thederivativeproject.com) it was clear that a dramatic shift in the structure of 401(k) plans and delivery of retirement savings investments and education was the only way to address a systemically flawed structure. The biggest failure is that Washington’s lack of action needlessly costs every retirement saver thousands of dollars a year,” said Seltzer. “Not On My Nickel addresses the immediate crisis of the poor state of our country’s retirement system by offering straightforward, transparent research and tools to engage the retirement saver today, while providing immediate cost savings and improved performance.”
Seltzer points to publicly filed data by employers at the Department of Labor, compiled and published by BrightScope, using Darden Restaurants, as an example, as cited in The Street, “Brightscope.com Rates Best and Worst 401(k) Plans.” Based on BrightScope data, as of July 9, 2013, Darden’s (Olive Garden, The Capital Grille, Red Lobster) 190,000 workers are projected to each lose more than $218,900 in lost retirement savings. “Projected loses are due to a confusing array of poorly performing mutual funds and excessive and hidden 401(k) fees employees are not aware of,” cites Seltzer.
She says “This situation exists for many employers, also cited in the same The Street article, such as Whole Foods’ 73,000 employees who stand to each lose $227,300 due to excessive and hidden 401(k) fees, based on publicly filed data, presented by Brightscope, as of July 9, 2013.”
Seltzer adds, “These significant losses are then further magnified by the financial advice industry, who may add an annual assets-under-management fee, from 1%–2.5%, determined from Securities and Exchange Commission filings, to help the employee select some of these poorly performing mutual funds.”
Some financial service firms have gone as far as deducting automatically from an employee’s paycheck, their advice services, without the employee’s knowledge, as described in this February 2013 Reuters article, “A new 401(k) success formula: Low cost plus advice.”
“The real tragedy is that these employees do not even realize their real and potential losses from the hidden fees they are paying through their employers’ plans and the years of work they have ahead of them to meet their needs in retirement,” said Seltzer. “Similarly harmed are IRA investors who blindly trust their financial advisors’ conflicted advice, ending up with financial products designed to meet advisors’ sales goals and redundant high assets-under-management fees.”
Retirement investors can use Not On My Nickel on their own or in conjunction with their IRA, Simple IRA or employer's 401(k)/403(b) brokerage window.
The annual subscription costs less than a mutual fund’s front-end load. The company’s research and education is independent, unbiased and non-conflicted.
Subscribers have access to proven investment managers that have consistently outperformed relevant indices while charging fair fees; a simple three-step investing guide; and a monthly newsletter to improve their investment knowledge and monitor chosen portfolio managers.
About Not On My Nickel
Not On My Nickel is the first and only independent research and investment education service that engages retirement investors to take charge of their savings. It provides immediate access to the best-performing portfolio managers at the lowest fees, while offering ongoing education and resources, grounded in a spirit of teaching others how to take control of their financial future.
Not On My Nickel addresses three flaws in the current delivery of retirement investing services. First, it eliminates the high assets-under-management fees paid to financial advisors who deliver little to no additional value. Second, it eliminates the dependency on conflicted advice from stockbrokers/financial advisors offering proprietary or inappropriate products. Third, it provides an immediate alternative to the high-fee, poorly performing mutual funds in 401(k)/403(b) plans.
Subscribers access a fully researched select list of active and passive mutual funds. These funds meet six criteria, which are the result of over 30 years of direct, diversified financial services experience. For more information, please visit Not On My Nickel’s website.