Equitable Threatens Teacher

April 3, 2025

Just when you think you have seen it all, along comes an example of just how lowly some in the K-12 403(b) industry think of teachers.

The following was sent to an educator by an Equitable employee. Keep in mind that Equitable is a company that was fined $50 million by the SEC for misrepresenting fees. The educator's crime? They did a presentation for colleagues in which they compared someone in a low-cost target date fund (charging 0.08%; hello Fidelity and Vanguard) with someone in an Equitable Equi-vest Series 201 Target 2055 Allocation investment charging 2.3% (1.20 M& E charge + 1.10% fund charge; see fee information below).

They didn't say all Equitable funds charge this much. They didn't say all educators currently stuck, err, putting money in Equitable products are in this product. They simply said IF this was the situation this is how much less in retirement savings an educator would have compared to someone investing in a low-cost target date fund from Fidelity or Vanguard. They said what everyone who knows anything about personal finaces says you should do: Avoid high-fee and high-cost products. 

Three things to note as you read this.

1. The intimidating, threatening nature of the email.
2. The absurdity that someone attending the presentation, whose money is with Equitable, was so offended by the information presented that they whipped out their smart phone, videoed the presentation and then breathlessly shared it with Equitable. 
3. The pivot to so-called "no fee" Equitable products. Known as Structured Investment Options or SIOs, these products are pitched as no fee but they are certainly not no cost. See bottom of this story for link to podcast we did on this product. We believe this pivot is evidence that Equitable is the one who feels threatened. We believe they feel threatened that educators are wising up to the impact of fees. Instead of offering straightforward low-cost products like Fidelity and Vanguard, Equitable manufactures a product that obfuscates costs. 

The only edits to this email were the redaction of the names of the sender, the receiver, and the name of the district. Grammar and spelling errors have not been fixed. 

Hi (Name redacted),

Your name has come up quite a few times from our current clients and they are growing very frustrated with you spreading misinformation. It was brought to our attention that you recently spoke at a District (name redacted) after school event and misrepresented our company many times. Fortunately, one of our good clients was able to get a video of what was said, as she was very confused and angry, as she had just gotten updated information on the NEW NO FEE EQUITABLE 403B SIO option (see attached flyer)

We have heard specifically from 5 Equitable clients in the past week who have emails, videos, and personal conversations they are submitting, where you are claiming “Equitable fees are 2.3% or more”. This was captured at a recent after school event you spoke at and confused many of our participants. You can’t make assumptions on our clients and DO NOT Have any idea as to which options they have chosen to invest in.

The reality is, you spreading misinformation makes YOU look bad. The new No fee options/flyer has already been given to our current clients, both to their personal emails, and mailed to their residence. They are all aware that Equitable came out with an option that avoids and M and E fee, expense ratio, trade cost, ect (SIO Investment options, no explicit fees, see flyer). Please educate yourself on our options to prevent further misrepresentation. You were also trying to get people to switch from Equitable to TRS and making false statements about TRS as well. TRS has been notified directly.

We have forwarded the info that has been provided to us to our compliance department/ legal team and building a case, as you cannot represent a company you don’t work for. We shouldn’t have to do this, but you have taken things WAY to (SIC) far. Please refrain from talking about Equitable, misrepresenting our company and options, as MANY (district name redacted) teachers have complained that you are lying and our clients have the evidence. In the meantime you have created a headache of people calling and being upset with you, as we have provided them ALL with the new no fee options and the evidence that combats your claims. They all have had an option to switch to the new no fee options and many have switched. We will not stop combatting the lies and misinformation. Please stop misrepresenting our company and cease and desist the misinformation.

(Name redacted)
Administrative Assistant

Screen shots of total fees for Equi-vest Series 201 Target 2055 Allocation fund courtesy of 403bcompare.com 4.2.25.

Stay wise and well and don't fall for so-called "no fee” products.

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