Is Your 401(k) Robbing You Blind?
Recently there’s been a brouhaha stirring over 401(k) retirement accounts. In a report entitled, The Retirement Savings Drain—The Hidden and Excessive Costs of 401(k)s—research firm Demos makes some startling claims about our beloved retirement accounts.
- Over a lifetime, fees can cost a median-income two-earner family nearly $155,000 and consume nearly one-third of their investment returns.
- A higher-income dual-earner household, one where each partner earns an income greater than three-quarters of Americans each year, can expect to pay an even steeper price: (as much as) $277,969.
- The median expense ratio of mutual funds in 401(k) plans was 1.27 percent in 2010.