Trillions in Retirement Dollars Flow into Opaque Trusts

(bloomberg.com)

73 points | by koolhead17 2 hours ago

6 comments

  • metadat 2 hours ago
  • cowsandmilk 1 hour ago
    This article feels overblown.

    Here’s a trust that has 250 billion, but reports prices and does many other things the article says isn’t required: https://workplace.vanguard.com/investments/product-details/f...

    Not opaque and it has lower fees than the retail S&P 500 funds.

    • bombcar 1 hour ago
      Using Vanguard anything as a counter-example isn't terribly persuasive; they're unique in the market.
      • cowsandmilk 1 hour ago
        Given the Bloomberg article explicitly calls out Vanguard, I don’t think using it as a counter-example is inappropriate.
  • darth_avocado 31 minutes ago
    There’s a really good video of how retirement accounts have become wall street’s favorite piggy bank to borrow from. TLDR; the money rewards bad behavior because governments are too scared to let people’s retirement accounts collapse.

    https://youtu.be/aRLxcx79OvE

  • jpadkins 38 minutes ago
    whenever I see headlines like this, I always think: great opportunity for someone to create transparent trusts then?

    am I super biased or fully drank the Kool aid if I believe entrepreneurs are the solution to many of society's ills?

    • forgetfreeman 34 minutes ago
      If entrepreneurship is the solution to society's ills why don't entrepreneurs solve societal problems? (note this criticism is equally effective when pointed at non-profits)
  • 0xbadcafebee 41 minutes ago
    > The worry is that vital investor protections are being sacrificed in pursuit of lower costs and lesser oversight. Those concerns are likely to grow as CITs look set to become the go-to vehicle to add more private market exposure to retirement plans. The Trump administration is laying the groundwork for 401(k) investors to get easier access to assets that don't trade regularly, like real estate and private equity.

    > In addition, Congress is proposing a path to let CITs gobble up even more of America’s retirement savings. A current move by US lawmakers to allow the pots of public school and nonprofit employees into the trusts has been described by one member of Congress as “the single largest deregulatory action we have seen in years.”

    This is corruption in action. Corrupt leaders are quietly attempting to make a profit off of citizens' retirement plans, with no plan to protect those citizens once the market inevitably implodes.

  • legalmoneytalk 2 hours ago
    [flagged]