Skip to comments.Learning about fees charged to your 401(k) could take serious sleuthing
Posted on 04/14/2014 5:39:25 AM PDT by TurboZamboni
Where to find the fees charged by your 401(k) retirement funds?
"Sorry to say there isn't an easy answer to where to find all expenses on retirement accounts, which is definitely part of the problem," says Jennifer Erickson, co-author of a new study of 401(k) fees by the Center for American Progress.
Your quarterly statement may not show all the fees and "can be even more confusing," Erickson says.
Most fees more than 80 percent of them are covered by a plan's "expense ratio." The expense ratio includes recurring fees you're charged when you invest in a fund. The ratio is disclosed in a document form 404(a)(5) sent annually to participants in 401(k) plans.
The expense ratio appears as a percentage of assets. It's also shown as an annual dollar amount for every $1,000 you invest. But the $1,000 figure can be misleadingly low. It doesn't illustrate how fees pile up year after year as you put more money into the plan.
(Excerpt) Read more at dfm.twincities.com ...
Wall Street investment firms continue to skim off the retirement savings of the middle class. The bilking of the consumer by business represents a dilemma for the conservative. Without government regulation, large and small businesspeople have proven time and time again through history they will take advantage of customers.
Polluted rivers, tainted food, Ponzi schemes, dangerous product defects, hazardous workplaces, one sided contracts, and outright theft resulted in citizens crying for regulation. Once government regulators get involved, they stifle innovation and add unnecessary cost. Ultimately government uses its regulatory power to dispense favors resulting in collusion between the regulators and the regulated.
Business cannot be trusted to self regulate. Government cannot be trusted to regulate efficiently or even handedly. What is the answer?
As I understand it, anything over 1% is no good. I was advised by my insurance agent to ask for a fee disclosure sheet.
Same as always: knowledge and effort. If you take the time to get educated and put in the effort to read through the statements, you shoud be able to figure out what it going on. It also helps to work for a company that doesn't sell you down the river to scammers masquarading as retirement plan managers. Sorry no free lunch today..
I can avoid those who charge high fees.
I can’t avoid government.
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