Paring 401(k) Expenses
NOW that some sunshine is being shed on 401(k) expenses, it’s time to see how you can improve returns by lowering the costs of the middlemen.
According to a study published by the progressive research group Demos, 401(k) fees can cost a higher-income, dual-earner household about $278,000 over a working lifetime. Even if you’ve done well with the funds within your 401(k), fees can consume nearly one-third of investment returns.“When plan sponsors and participants have more information about the costs involved with their retirement savings, they are empowered to make more informed choices such as selecting an investment fund provider with better net-of-fees returns or lower-cost retirement service providers,” Phyllis C. Borzi, an assistant labor secretary, said in an e-mailed statement.
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