Are Fees Too High?

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Why Not Consider Fees according to the Department of Labor?

Assume that you are an employee with 35 years until retirement and a current 401(k) account balance of $25,000. If returns on investments in your account over the next 35 years average 7 percent and fees and expenses reduce your average returns by 0.5 percent, your account balance will grow to $227,000 at retirement, even if there are no further contributions to your account. If fees and expenses are 1.5 percent, however, your account balance will grow to only $163,000. The 1 percent difference in fees and expenses would reduce your account balance at retirement by 28 percent. Click here:

A Look at how the Department of Labor directs our attention to 401(k) Plan Fees

Small Business 401k, Big Plan Fees

insurance companies are the most egregious offenders of high fees and hidden costs. Unfortunately, the small business 401k market is dominated by these insurance companies since they have extensive sales forces

The Heavy Toll Of Investment Fees

Paying fees that equal up 40% per year just to access the markets should cause every investor’s head to turn. Investors can do better. Granted, no mutual fund is free and professional advice isn’t free either, however substantial cost reductions can be achieved with a few changes.

The Retirement Savings Drain:
Hidden & Excessive Costs of 401(k)s

These fees can be substantial: over a lifetime, fees can cost a median-income two-earner family nearly $155,000 and consume nearly one-third of their investment returns. Worse, these fees are often excessive and financial services companies can get away with charging higher-than-necessary fees for a number of reasons, namely: the savers’ lack of information, the inefficiency of financial markets and individualized investing, and the substantial costs—both in money and time—associated with switching between investment brokers.

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