Imagine a product or service so bad that the employees of the company that makes it refuse to “eat their own cooking.” Even worse, the employees join together and sue their employer for making them use it.
What product/service are we talking about?
- A 401(k) plan
Who are the employees we are talking about?
- Employees of American Century, a company that creates and manages dozens of mutual funds
If you find this hard to believe, here is the LINK.
Unfortunately for the asset management industry, this is not the first time mutual fund company employees have sued their own employer over the 401(k) plan. In the last few years, employees of Fidelity, Ameriprise, Mass Mutual, Transamerica, Putnam, and others have done the same.
For the asset management industry these are clearly the signs of a serious existential crisis.
For all of you “retail investors” out there this is yet another example of the need to understand the fees you are paying for investment advice, products, and services.
After all, if the employees of a mutual fund company are so adamant against their own cooking, then why should you eat it?