Crazyman's Economics

In researching "Crazyman's Economics", I discovered the "dirty secret" of Wall Street that they rely on the fees and hidden costs as Loeper so thoroughly describes in "Stop the 401(k) Rip-off!." To Wall Street's brokerage houses, it doesn't matter if your 401(k) makes money or loses money, the fact is that as long as you have your money circulating, Wall St. makes money.

Loeper is correct that you need to take a greater look at your 401(k). Where I disagree with his book is that no matter how much you work to take the fees out, the problem is that the entire system is a giant con game. I would recommend that people take money out of their 401(k) and then they won't have to worry about hidden fees.

But Loeper's book is necessary reading to get a discussion started in this country about the role of Wall Street and the need for accountability for those who hold trillions of dollars of our money.

What is the best way to "stop" the "rip-off?" One way is to find an alternative to the 401 itself. Perhaps "Stop the 401K rip-off" by David Loeper is garnering some deserved sales recently. Possibly because the financial markets are in a cyclical slump, and many Baby Boomer 401K holders are getting out their calculators. This book should lead some (not all) to question whether they should have the 401K plan at all to begin with. We know the tax benefits, but there are limitations of investment options, age restrictions, and hidden expenses (fees) that erode a worker's earnings over decades and limit allocation options.

The 401K is one piece among many investments in the retirement puzzle. This puzzle is shrinking, and retirement will be an illusion for tens of millions that will rely on the balance of the 401. Of course, the old adage of "diversification" is needed but some people are using other vehicles in their attempts attain critical mass or sufficient funds for living expenses in the latter years. And, what percentage of the 401K will be used for medical care? Pharmaceutical (medicine) costs? More than many think.

Yes, there is employer matching for some, but 401K plans are dishonest and limited. Some feel even more secure investing into the S & P 500 Index funds that are non-tax deferred.

The 401K plan has been intentionally engineered to steal from and cheat the worker. Congress has allowed this to happen. The lack of knowledge and ignorance has been engineered as well. The more ignorant workers with 401Ks are, the easier it is to profit via hidden fees.

Loeper tells us how to "stop the 401K rip-off." The gravy train of hidden expense theft is the foundation of the plan. The only way to stop the institutional and legally thievery is to stay in your plan and know *everything* about your plan, or to dump it and use alternatives. This is a good point with specifics.

2 key assets to this book. Exposing it and then advising on how to take actions. Loeper explains the "whats" of the 401 and also the "hows" of trying to reduce fees, fee disclosure, and offers points on getting in and out of these plans in the most optimum way. This book is necessary, but why should it be? Because of the systematic plan to separate as much of an American worker's money from him or her as possible.

"Stop the 401K rip-off" by David Loeper ought to be handed out by HR departments across the country when employees enroll in their 401K plans.

Dave Loeper exposes the dark, hidden and arguably unscrupulous (yet legal) ways 401k participants have been (and continue to be) robbed. More significantly he gives you the knowledge to fix this injustice. Read this book and act on it or prepare to cry about it during your retirement or lack thereof.
From my experience as a retirement plan consultant, investment advisor and independent fiduciary; it is a sad commentary that almost every employer I meet isn't even aware of the basic retirement plan issues (let alone the remedies) highlighted in this book.
After reading this book you will know more than your employer about your broken 401k plan, more importantly, you will have the blueprints to help them fix it.

My name is Matthew Hutcheson. I'm an independent pension fiduciary, and have studied retirement plan economics for over fifteen years. Every American worker with a 401(k) (or a 403(b)/457 for that matter) should put this book on the top of their reading list. The information contained in this book could be worth many thousands of extra retirement dollars to you down the road. Mr. Loeper should be congratulated on one of the most important and practical retirement books of the decade.

What an incredible book! So many people invest in retirement programs. So many companies offer these programs. Sadly, very few people or companies negotiate well or know where to start. I found this book very helpful and a special discovery to the process of reviewing a company's retirement plan.

I am surprised that the book got so many five star reviews. There is nothing mentioned in the book that a somewhat experienced investor will not know. I am all for bringing light to anything about investing though.

As David points out in his book, employees should know about the fees and conflicts of interest regarding the investment choices in their 401(k) plans. There continues to be a lack of education for participants with regard to the investment assets within qualified retirement plans. It's not easy for people to know about potential conflicts of interest pertaining to the investment options available through 401(k) plans.

Readers of this book can make more informed decisions about the investment options selected when they know how to evaluate, among other things, the disclosures mutual fund companies provide about their fees and conflicts of interest.

Another logical solution to the lack of information about 401(k)'s and other qualified plans is for people to augment their education by reading books such as David's or by obtaining specific investment advice provided by a qualified fiduciary advisor.

I recommend this book which should help people better understand the financial products they are invested in and the services they receive in order for them to reach their retirement objectives.

Bill Griffith, Jr., CFP / Author of Securing a Retirement Income for Life

The author seems genuinely concerned about people losing money to
unscrupulous money managers. The book is very informative.

Hidden fees are a drag on your wealth accumulation and retirement goals. To have a better and richer retirement, read this book. Share it with your boss and your H/R department. Don't accept over priced 401(k)'s -- fight back!

Having read this book and learning a lot about hidden expenses, I'm not sure I understand what Oberlander's point was in his/her review. Everything that Oberlander says in his review of the book is already in the book (and public record) and is what Loeper was incensed about and motivated him to write the book. Apparently Oberlander didn't read the book. The information Oberlander mentions is not only in the "public record" but is also in the appendix of the book! As someone that actually read the book, Loeper was able to reduce his participant's cost by over 80%. I'm not sure what the point was of the Oberlander review, unless of course he/she is one of the industry insiders trying to protect his excessive fees. I have heard a radio interview with Loeper the other day and I know the product vendors are not happy that Loeper is exposing their hidden fees.

As the comments noted, the book does an adequate job of disclosing the history of the firm's fees.

Mr. Loeper's company, Financeware, has a 401k plan with about 25 people in it. In 2006, *the plan* paid approximately $9,000 in fees and in 2005, the plan paid approximately $11,000 in fees. Additionally, salesmen were compensated via commission over the two years to tune of about $7,000. There is about $1.3 million in the plan. This is public information.

Retirement accounts are more important than ever before. With the slow demise of Social Security and Americans' complete inability to save for retirement, the rip off of our 401k retirement plans should be heeded like never before. If you care about your 401K, your IRA, and having a safe, secure retirement, read this book.

Americans are usually about as concerned with retirement planning as they are with the Lithuanian lottery. But that has to stop. Thanks to this book and books like Ric Edelman's most recent maybe people will wake up to the abuse of retirement accounts in this country.

The book is well written, succinct, direct, and holds no punches. The only place it falls a little short is in repetition. At times in later chapters the book repeats what was said earlier.

This is perhaps the best book related to retirement planning I've read. The funniest book related to retirement I've read is Martha Bolton's "Race You To The Fountain of Youth". Race You to the Fountain of Youth: I'm Not Dead Yet (But parts of me are going fast)

As one without a financial background, there seems to be a lack of practical, understandable, quality information on managing and making the most of your 401k. The insights in Loeper's book fill this void. This is especially true regarding the high fees charged by some 401k providers. Following his guidance should help businesses and individual investors determine the true cost of their 401k, minimize those expenses, make better choices, and get the most out of their retirement accounts.

This is not the type of book I'd normally read. Thankfully, a friend a loaned me their copy. Read this book, apply what you learn and enjoy your retirement!

This book blows the whistle on undisclosed 401(k) fees that are netted against the returns you receive on your hard-earned 401(k) balances. The author guides you on figuring out what fees you might be charged with unawares and provides guidance on what to do if those fees turn out to be excessive. The book puts the costs of excessive fees in the very real context of the very painful impact on your lifestyle (delaying retirement, crimping retirement spending, increasing how much you need to save pre-retirement.) Read this book to learn how to fix your Company's 401(k) plan even if you are just a participant and not the boss. You owe it to yourself and your family.

David Loeper shows 401k participants (both owners and employees) how to expose the hidden (and often excessive) fees in their 401k plans. Until congress decides to require full fee disclosure, participants will have to fight for it alone. If you don't KNOW that your plan fees are 1% or less, I suggest you follow David's advice and start the difficult task of uncovering your plan's hidden fees.

If you are contributing to a 401k plan for the purpose of having money to spend in retirement, you need to read this book. It brings to light things that are impacting the amount of money you will actually have. You will be surprised at what has been allowed to happen in these programs.

For many people the question isn't "Am I getting ripped off?," but rather "How bad?" While the subject matter won't keep you on the edge of your seat, 401(k) Ripoff is a must-read book that will leave you feeling misled, misinformed, and likely more than a little pissed off. The fact is, if you haven't given much thought to your 401(k) (or even if you have but lack the requisite know-how) you're probably losing thousands of dollars in exorbitant costs...and with just a little bit of information you can do something about it. There's very little "industry speak" so don't worry if finance isn't your background; this is written for people who don't ordinarily put their investments under a microscope. The real-world examples really bring it home, and the real-world recommendations are plausible and well-thought out.

You can read this book over a week's worth of lunch breaks, I recommend it.

An easy read with tremendous information. It's extremely hard to believe how much 401k plan providers are over-charging and not disclosing the fees to the participants. With millions of individual investors counting on 401k assets to support them in retirement, many will find the information in this book a very powerful weapon in hopefully changing their plan options and saving themselves thousands of dollars in the process. Read this book and then give it to your colleagues!

Most people I talk to would like to be millionaires by the time they retire. That means that investment in retirement accounts or general brokerage accounts should be increased by a couple thousand dollars a year and maintain a decent return. The percentage of return is the main factor in attaining that million-dollar status (especially when the interest starts to overtake the voluntary contributions as the main annual investment). What Loeper shows in fascinating detail in Stop the 401(k) Rip-off is that the companies (insurance companies) that sell the 401(k) plans to employers take a sizable chunk of the return--often before you even see your statement (which may have additional fees shown).

The total damage is scary and may force you to immediately reconsider your retirement planning. After fund expense ratios, administration fees, wrap fees, M&E charges, and countless other fees that make retirement account statements start to look like cell phone statements, the total return may be 4% off of what your money has really made. In other words, a 401(k) plan makes almost as much money for the insurance companies as the employer.

Loeper utilizes multiple charts and examples to make his point that the 401(k) program is a rip-off and we should stop using them. Everyone who invests heavily in these accounts should know what they're getting themselves into and read this book.

JSBM
Author, How to Take Advantage of the People Who Are Trying to Take Advantage of You: 50 Ways to Capitalize on the System

What an eye opener! I wish I knew how much my retirement accounts would be worth if I had known about the high expenses and hidden fees of my plan provider, and had taken action. Hopefully, the plan providers will take note and offer full disclosure on all expenses, and lower fees overall.

This book is great for all investors. The book is easy to read and understand. If you think you are getting ripped off...you need to read this book! It is an eye opener! Very well thought out and to the point!

I highly recommend this easy to read book to anyone participating in a 401(k) plan. I didn't realize I was paying any fees until I read this book. Not only does it show you how to find the hidden fees, it hits home by showing you the huge impact these excess fees can have on your life. The author then gives an easy, step-by-step approach you can take to fix the problem, which I intend to do right away!

This book pulls back the curtain on the 401k industry. It is amazing given the millions of people participating in 401k's that there are so many conflicts of interest. Reading this book really opened my eyes to these issues. Anyone who participates in a 401k needs to read this book.

I have 15 years of experience as a Financial Advisor with some of the biggest firms in the industry. As part of my core business I offered 401ks to my clients. I never considered the impact of the excessive and hidden fees on their long-term wellbeing and in fact, never considered that there might be alsternatives to what I was offering. This book has opened my eyes to another way of doing business while practicing what I used to preach, namely, doing what's right for my clients.