Tuesday, October 10, 2006

Landmark Agreement - No Investor Left Behind!


Per today's new release "Attorney General Elliot Spitzer announced a landmark agreement that will set new national standards for transparency in the marketing of retirement products and provide compensation to each of more than 50,000 teachers in upstate New York".

"Under today’s settlement, ING has agreed to set a new industry standard for retirement product disclosure by providing a simple cover-page summary of all the costs of each plan it offers. This disclosure will include a chart demonstrating the impact that these costs have on long-term investments. On this disclosure page, ING will also explain that mutual fund managers often pay ING to have their funds appear on the menu of options offered to investors." The "landmark" 1 page disclosure appears below.

Important Facts About [Name of Product]
This retirement product is not free. ING and the funds offered in the product charge various fees and expenses. Many fund companies pay ING in return for being offered as investment options, as well as for the recordkeeping and related services ING provides. Funds are selected based on the revenue they pay to ING and on ING’s ssessment of their quality and cost. Both ING and the mutual fund companies seek to make a profit from the product. Any fees that you pay as part of your retirement plan will have an impact on your savings over time. An investor in this product pays ING and the fund companies an average of __% of his or her account balance every year. The table below shows the impact of the average fee on the account of an investor who saves $__ at the beginning of each year over a twenty-year period, assuming that the investment portfolio (before fees) increases by 7% per year
.
YearEOY Bal. Without FeesEOY Bal. With Average Fees
1
5
10
15
20

Total impact of average fees = $

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