“CREF-Gate” of How CREF Stock Traders Lose Our Money and Hide the Loss


In 1992 Leon Winer did some research investigating the management of retirement accounts by CREF. He found that CREF was charging higher fees than several brokerage firms (Vanguard and Fidelity) making similar investments and trying to hide the poor results.

Now, 20 years later Consumer Reports reveals that the same practice is continuing. In their article “Grow Your Savings” they point out that CREF has a .30 greater expense ratio than Vanguard (.17). Causing contributors “to lose out on tens or even hundreds of thousands iof dollars in returns over their working lives without even knowing.”

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