Are you paying 12.17% in hidden 401k fees? Do you know your 401k fees? A recent AARP survey found that most Americans do not know how much they are paying in 401k fees. Bloomberg has done a good job of bringing to light some of the concerns with regard to these fees. One plan was actually paying 12.17% in fees, making it difficult to even make a profit. You could even end up with less in your plan that you contributed.
Americans have more than 3 trillion dollars in 401ks, maybe less now. As we are becoming more and more dependent on our personal savings for retirement, we need to watch fees because in the words of John Bogle, founder of Vanguard, “The shortest route to the top quartile in performance is to be in the bottom quartile of expenses.” The reverse holds true as well. The higher your fees, the lower your return.
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