Quote:
Originally Posted by masraum
Interesting. Kind of amusing (to me). I work for a huge bank. When I first started working for the bank, they handled our 401k. At some point, they farmed that out to another company. That seemed weird to me.
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Yeah, that doesn't make sense. It seems like administering a retirement plan (401k/403b) would be a win-win. OK, there's the hassle of running a company. But you can't lose. You charge quarterly fees for your management services, whether the accounts gain or lose money. And you're constantly getting free micro-loans from all the money people are contributing to their retirement plans.
When you get your paycheck, direct deposit goes into your bank account on the day of the paycheck. But the money that gets deducted from your paycheck to get deposited into your retirement account takes 2-3 weeks to get there. Get enough of those going, and you've always got a constant stream of interest-free micro-loans to use/invest.