How would you like to have an extra $155,000 to spend during your retirement years?
Yoav Zurel, CEO of cost assessment website FeeX.com, says you could have at least a portion of that if you worked on minimizing your 401(k) fees. A 2012 study by public policy organization Demos found a median-income, two-earner household will lose nearly a third of their investment return to fees over their lifetimes. "One-hundred and fifty-five thousand dollars are basically evaporating from your retirement savings," Zurel says.
While the government has taken steps to improve fee disclosure for 401(k) plans, many finance professionals say the current rules don't go far enough. Plus, IRAs don't come with all the same financial protections afforded to 401(k)s.