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Fidelity Tax on Vanguard Funds Highlights Flaws of Revenue Sharing in 401k Plans

Fidelity Tax on Vanguard Funds Highlights Flaws of Revenue Sharing in 401k Plans. The recent move to tax Vanguard funds used by Fidelity’s record keeping clients, while unusual, makes economic sense yet highlights the flaws of revenue sharing.

New plan sponsors that use Fidelity’s 401k recordkeeping services with less than $25 million must pay a surcharge of 5 BPs or 0.05%. Watch my vlog to understand why Fidelity is taking this unique move and why plan sponsors should consider using clean shares or those that do not have revenue sharing embedded in the expense ratio of investments.

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Financial Wellness Program

Financial Wellness Program Effectiveness Being Questioned

Financial Wellness Program Effectiveness Being Questioned Financial wellness programs are getting a lot of positive press.  There seems to be no shortage of favorable reports for employees who have access to financial wellness programs. However, it appears that proving the ...