Imagine walking into your favorite clothing store, where — curiously — not a single item has a price tag. You grab what you want, but when you reach the register, the cashier refuses to tell you the price.
Instead, he grabs your credit card and says, "Just trust me." This ridiculous example illustrates the essence of how the multitrillion-dollar 401(k) plan industry operated for decades.
For nearly 30 years, the 401(k) plan industry wasn't legally required to explain exactly how much it was charging investors. Only in 2012 did the government finally force providers to make detailed disclosures of how much they were extracting from your hard-earned savings. In what other industry, or universe, would this ever be tolerated by customers?