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March 05, 2005


Maybe I'm missing something obvious here, but one doesn't need high administrative fees to get a bonanza. There's always the route of selling a HUGE amount of something fairly cheap.

Social security is an enormous amount of money. Right now, I would presume that Wall Street is seeing little to none of it, given that it's going into US treasuries. 0.3% of several hundred billion dollars is still a nice chunk of change, and I'm sure that Wall Street firms won't be doing that management at cost out of the goodness of their hearts.

Given that no-load, index-tracking mutual funds are heavily marketed by Wall Street investment companies, apparently they've found plenty of ways to make a tidy profit off of them.

.3% is the total estimated administrative cost, not the portion that would go to Wall Street. And the larger point is that if Bush wanted to enrich Wall Street, as his detractors allege, he would be promoting accounts offering a wider array of actively managed funds with higher fees.

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