Tuesday, November 6, 2012
15 Years of Fee Transparency
How much are you paying on your 401(k)? A poll conducted by AARP concluded that 71% believed that they paid no fees for their 401(k). In reality, all 401(k) plans have some fee structure set up. Because the amount of fees paid will impact your nest egg over time, every individual investor should be aware of the fees he or she is paying. An article recently published by MSN Money called "Is your 401k ripping you off?" further explains the affects of fees in employer plans.
It is important to understand the many different levels and types of fees as well. There may be portfolio management fees, transaction fees, commissions, mutual fund expenses, loads, or other types of expenses "built into" accounts. Regardless of the account type, MAKE SURE you know what fees you are paying and seek to reduce those costs.