401k Mismanagement

Did you know that Americans pay an estimated 30 to 60 billion dollars a year in 401(k) management fees? Whether you’re aware of it or not, you could be paying as much as 2% annually on the balance of your 401(k).

American consumers work hard and sacrifice big to save money for their golden years. For many, a healthy 401(k) contribution is the primary means for doing this. But we don’t get to ‘shop’ for the best 401(k) plan to suit our individual needs. Most of us are forced to make due with the program our company has contracted, which may include pointlessly high fees in addition to fraudulent management services.

Sometimes you’re getting a lot less than you’d expect for the high prices paid. In recent years, many of the biggest Wall Street brokerage firms have been guilty of 401(k) mismanagement, causing the destruction of countless American retirement funds. 

If you’ve lost money in your 401(k) retirement fund, don’t assume it’s just because of the market. You may be the victim of 401(k) mismanagement. Help is available. Powerful consumer protection laws are at your disposal, and you may have a very strong legal claim to get your money back.

How 401k Mismanagement Happens

For the most part, the days of corporate pension plans are over. Since the average retiree gets $14,700 a year from social security, most Americans are relying on their 401(k) savings to finance their retirement.

Most Americans know this, and many of them are doing all the right things to prepare, i.e., they’re working hard and saving their money in their 401(k) for a comfortable retirement. But big banks, Wall Street brokerage firms (and even your employer) may have a different plan that doesn’t include the best interests of you and your family.

Recently, many 401(k) plans across the nation have been grossly mismanaged, resulting in the decimation of retirement accounts. Investor fraud is frequent enough when an investor is dealing directly with an investment advisor. But 401(k) participants are even further removed from the investment process making fraud easier to achieve, and far less noticeable to the actual investor.

Most 401(k) fraud victims never even realize it. They assume their losses (ranging from tens of thousands to millions of dollars) are due to the ‘bad economy’ and ‘poor stock market performance’ but there could be something much more sinister to blame for your loss.

In fact, the 401(k) industry is packed with conflicts of interest, which most workers have no idea about. While there are many problem-free 401(k)’s, yours could have one of the following issues associated with it:

  • Many employers don’t shop around for the best 401(k) plan available but simply go with the bank they’re already doing business with. Some employers may be getting benefits and deals for allowing their bank to manage the 401(k), while employees are paying more in fees for a service that’s much cheaper elsewhere.
  • Sometimes employers are actually getting a share of the profits made from the 401(k) managers’ fees.
  • Sometimes 401(k) managers get kickbacks from the mutual funds they choose for 401(k) participants.
  • Many 401(k) plans are being completely mismanaged, and some contain fraudulent mutual funds, which are riskier than they appear to be.

When 401(k) mismanagement happens, the only person that pays for it is the American consumer, who rarely knows it ever happened in the first place. Do you suspect you’re the victim of 401(k) mismanagement?

Try and Get Your Money Back

If your financial losses were caused by 401(k) mismanagement, you deserve to receive compensation for the money you lost. Fraud victims can make a claim for damages and may qualify for full or partial compensation in addition to other types of reimbursement.

Fraud victims must realize that billion-dollar brokerage firms sometimes devise complicated ways to extract money from unsuspecting victims, violating numerous laws in the process. If your 401(k) was mismanaged, this is not your fault!

Pursuing a stock fraud claim will teach Wall Street brokerage firms it’s inexcusable to prey upon hard-working Americans and disregard their best interests and needs. Your claim may even prevent others from suffering as you have by forcing Wall Street brokerage firms to conduct business with honesty and integrity.

Contact Us

You may be eligible to receive compensation regardless of whether you sold or continue to hold the securities at issue. Contact us today to set up a free consultation. We will listen to your story, answer any questions you have and discuss your legal rights and options.