How much fees are baked inside your 401(k) plan? If you own the company, you really should know. If you are an employee participant, it is your money being used to pay these fees i most cases.
And, in spite of recent rule changes forcing better disclosure of fees, it turns out most folks still don’t know how much they pay in fees inside their 401(k).
A recent study by the company “ShareBuilder 401k” found that, on average, most folks thought 3% was a reasonable price to pay! That isn’t reasonable, it is highway robbery!
The survey also found –
- Employees are taking a stand. Eighty-two percent of businesses reported that at least some employees took action as a result of their 401k fee disclosure notice. The survey also revealed 41 percent of business owners received requests from their employees for a better understanding of their plan expenses.
- Small business owners want lower fees: 35 percent of small business owners said they negotiated or plan to negotiate better pricing with their current plan provider, while 34 percent gathered, or plan to gather, benchmarking data to compare their current plan with alternate plans. Sixty-five percent of small business owners compared the fees in their plan to other comparable plans on the market.
Whether you own the business or work for one with a 401(k) plan, the world of fees has become very competitive and paying 3% is not only unnecessary, it is downright foolish.
If you want help discovering the true cost of your 401(k) plan, give us a call or contact us at http://www.mjeverson.com and let us show you exactly how much you’re paying in your company retirement plan.