Richard Rider

Richard Rider
San Diego, California, USA
August 24
San Diego Tax Fighters
Biography of Richard Rider (Updated July, 2011) San Diego, CA 92131 E-mail: * AGE: 66 * EDUCATION: B.A. Economics, University of North Carolina, 1968 * MILITARY SERVICE: Commander, Supply Corps, U. S. Naval Reserve, retired after 26 years (four years active, the rest in the reserve). ** OCCUPATION: Retired stockbroker and financial planner. Lifetime member of the International Association of Financial Planners. Former business owner. * AFFILIATION: • Chairman, San Diego Tax Fighters • National Taxpayers Union • Howard Jarvis Taxpayers Association • San Diego County Taxpayers Association * POLITICAL ACTIVITIES: • Successfully sued the county of San Diego (Rider vs. County of San Diego) to force a rollback of an illegal 1/2-cent jails sales tax, a precedent that saved California taxpayers over fourteen billion dollars, including $3.5 billion for San Diego taxpayers. • Actively supported a variety of tax-cutting ballot initiatives including Proposition 13. Has written ballot arguments against numerous county and state tax increase initiatives. • County co-chair of both California term limit initiatives (Prop 140 and Prop 164). • Libertarian Party candidate for governor in 1994. • Candidate for the 3rd District County Supervisor in 1992 (third place among six candidates with about 20% of the vote). • 1993 – appointed to (and then elected chair of) the San Diego County Social Services Advisory Board. • 1996 – appointed as a Commissioner on the California Constitution Revision Commission by state Assembly Speaker Kurt Pringle. • Has been involved in legal actions against City of San Diego to force a public vote on issuing bonds for Qualcomm stadium expansion, convention center, baseball ballpark and other projects. • 2005 – Unsuccessful candidate for Mayor of San Diego, though his reform ideas have since taken hold. • 2007 – Columnist for NORTH COUNTY TIMES and SAN DIEGO DAILY TRANSCRIPT • 2009 - The Howard Jarvis Taxpayers Association's "California Tax Fighter of the Year" * FAMILY: Married. Wife, Diane, is a retired public high school teacher. Two sons, ages 32 and 27.

APRIL 30, 2012 6:57PM

How 401-k plans can approach zero administrative cost

Rate: 0 Flag


One common labor union objection to defined contribution pension plans (401-k plans) is that the administration costs are "1%-3%" annually.  They assert that it's much less expensive to let CalPERS or other "experts" manage a huge pooled account.  

And indeed that high 1-3% individual account annual cost would be a major impediment.  IF it were true.  

It's not.  Not if one makes even a rudimentary effort to control costs down to 0.2%.  And in some cases, the cost can approach 0.1% a year.   

No, not 1% a year.  That's ONE-TENTH of ONE PERCENT annually --TOTAL cost.  And it can be even less.

Furthermore, the employer -- public or private -- can make and set such cost limitations for the employees.  There are sensible restrictions the employer can suggest to avoid the gambler's tendency to figuratively bet on the lottery with their pensions.

Let me add that the advice contained below is readily available for ANY investor -- IRA's, 401-k plans or just brokerage account investing of personal investments.  Everyone should at least be aware of this option.

The "trick" is to not buy and sell individual stocks, but to use several different mutual funds, which gives you a tiny equity position in thousands of companies.  And the lowest cost mutual funds are INDEX mutual funds -- a fund that essentially reflects an index such as the S&P 500.   And among these funds, the "ETF" (Electronically Traded Funds) index funds -- traded as stocks -- are the cheapest of all.

Here's a recent, excellent FORBES magazine article, "All-Star ETFs."  It lists the best (defined as lowest cost) ETF index funds.  It's well worth a read.

Of the 15 best funds the article cites in five different types of fund investment, 11 are Vanguard funds.  Vanguard, a huge money manager, has always been among the lowest cost mutual fund providers.  

To make the Vanguard choice an optimum solution, one should consider setting up the plan within a Vanguard brokerage account.  Remarkably, Vanguard allows FREE account trading of Vanguard ETF's (unless you get goofy and try to time the market by trading the same ETF over 25 times a year -- good luck with that!).

Let me add that defined contribution plans are a breeze to run from an employer standpoint -- certainly compared to the mess that constitutes defined benefit plans.  And there's no surprise unfunded liability!  

Bottom line?  Diversified security investing in tax qualified retirement plans, or in one's own personal account -- is available for a tiny cost per year, if desired.

There.  Another bogus labor union objection roasted and skewered.  It's Miller time! 


Author tags:

etf, vanguard, pensions, 401-k

Your tags:


Enter the amount, and click "Tip" to submit!
Recipient's email address:
Personal message (optional):

Your email address:


Type your comment below:
Comments are now closed.

Richard Rider's Favorites

  1. No relations made yet.