Equitable Beats Vanguard At This One Thing
September 27, 2022
I recently posted the following chart on Twitter and got a lot of likes and Retweets.
2.3% vs. 0.08%
It's really this simple. 2 teachers. Aged 22. Contribute $5,000 year. Invest until age 60. 7% annual return. One invests in Equitable's Target 2045 fund (2.3% fee). One invests in Vanguard Retirement 2045 fund (0.08% fee).
In the interest of fairness, I want to share a metric where Equitable beats Vanguard.
A Fine Comparison
SEC Press Release from July 18, 2022: Equitable Financial To Pay $50 Million Penalty To Settle SEC Charges That It Provided Misleading Account Statements to Investors: Accounts belonged to public school teachers and staff investing for retirement.
Why Are School Districts Still Offering Equitable?
Why in the world would a school district continue to allow Equitable to sell high-cost products to its employees? Why in the world would a school district not make available a low-cost company like Vanguard? See our vendor rating system for other worthy and unworthy vendors.
Stay wise and well (if your employer offers Equitable ask them how they can justify this).
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Related Podcast: AXA/Equitable Insider
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