Fred Reish Quoted by CNBC

Los Angeles partner Fred Reish was quoted in a CNBC article titled “Why high 401(k) fees are likely to stick around.”

A judge has dismissed a case against Putnam Investments that alleged that the company was loading its employee retirement plan with its own funds instead of external ones, and costing participants millions of dollars. A similar suit against Wells Fargo was also dismissed. In both cases the judge rejected the plaintiffs’ assertions that the companies’ fees were too high because lower-cost alternatives were available at Vanguard.

Fred noted that both cases indicate that as long as plans are able to differentiate, they’ll be able to justify higher fees.

The rulings confirm that the costs "of actively managed mutual funds and index funds are different, and that the differences can be justifiable,” Fred said.

Read “Why high 401(k) fees are likely to stick around.”