How Medical Professionals of RWJBarnabas are being cheated
June 17th, 2020
PART 1 (TARGET DATE FUND INVESTMENT OPTIONS)
My analysis of the RWJBarnabas Health Retirement Savings Plan
I am committed to serving those to help others. One small way I can give back to our medical community is providing an objective look at the retirement plans that are healthcare heroes are offered.
Retirement plans (401k & 403b) now serve as the primary source of retirement savings in America. The RESPONSIBILITY of saving for retirement AND selecting the proper investments is on the employees. This is a fact in America today as pensions have become obsolete.
2 VARIABLES in Investing in YOUR Retirement Plan
1. The amount that you save per year (you should try to max out your 401k or 403b/year = $19,500)
2. SELECTING THE PROPER INVESTMENTS
My dear healthcare heroes at RWJBarnabas, your Retirement Plan STINKS (imo)☹
How is a non-financial professional supposed to be able to analyze the investment options that are offered to them in their retirement plan? They ASSUME that someone is looking out for their BEST INTERESTs. Additionally I am willing to bet that out healthcare angels are now even aware that their investment options are not the BEST investment options available.
Without getting into the weeds the RWJBarnabas Health Retirement Savings Plan is NOT IN THE BEST INTEREST OF EMPLOYEES because the selection of investments offered to participants are HIGH COST INVESTMENTS. You are literally writing a check to Wall Street & THE BIG BANKSTERS each and every year for nothing!!! This in my opinion is what I refer to LEGAL THEFT!
FYI all this info is publicly available via the following link
The way this plan works is they give participants 2 options
1. DO IT FOR ME
2. DO IT YOURSELF
DO IT FOR ME section is comprised of Target Date funds. An excellent investment option (ASSUMING THAT THE RIGHT VEHICLE IS CHOSEN).
This is a diversified portfolio all done for you.. Pick the date of your estimated retirement and the funds allocation to stocks & bonds is chosen for you. Easy…Set IT & Forget IT!!! WRONG.
It should be this way, BUT whomever selected your investment options DID NOT HAVE YOUR BEST INTEREST IN MIND (Fiduciary)!!!
All of the Target Date Funds are American Funds with EXPENSE RATIO ranging from .31% – .41% .
Compare this to Hackensack Meridian Health Retirement Plan that uses VANGUARD TARGET DATE FUNDS. Vanguard’s EXPENSE RATIO = 0.09%
WHAT DOES THIS MEAN???
.36% (American Funds) (what you are currently paying) MINUS .09% (Vanguard) (what you SHOULD be paying) = .27% LEGAL THEFT
For every $100,000 in this investment you throw away $270 PER YEAR.
On top of you paying for unnecessary investment expenses EVERY YEAR you are being robbed of the opportunity to have that stolen money work for you via compound interest!
COMPARE RWJBarnabas vs. Hackensack Meridian Health Retirement Plan – TARGET DATE INVESTMENT OPTIONS
Hackensack Meridian Health Retirement Plan – whomever set this plan up on behalf of employees did an excellent job!!! They selected the correct investment options in the BEST INTEREST of their participants…well done.
RWJBarnabas Health Retirement Savings Plan is NOT IN THE BEST INTEREST of the plan participants☹ Whomever created these options did not CHOOSE the BEST Target Date Funds = VANGUARD in terms of hidden fees.
WHAT CAN YOU DO (use my blog posts as a resource, it’s in YOUR BEST INTEREST)
DEMAND THAT YOUR RETIREMENT PLAN OFFER LOW COST TARGET DATE FUNDS (simply copy & paste Hackensack Meridian’s Target Date Fund list)
1. Call your HR department &/or Employee Benefits
2. Call Fidelity 1-800-513-5015
THE SQUEAKY WHEEL GETS THE GREASE!!!
Fight back to keep more of your hard earned money. Do not allow the BIG BANKSTERS to force poor investment options upon you!
I am happy to discuss my findings is you have any questions.
Tomorrow I will explore the 2nd part of the RWJBarnabas Health Retirement Savings Plan (DO IT FOR ME)