Comments on: Am I Paying Too Much for My 401(k)? http://www.thesunsfinancialdiary.com/personal-finance/am-i-paying-too-much-for-my-401k/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: The Sunhttp://www.thesunsfinancialdiary.com/personal-finance/am-i-paying-too-much-for-my-401k/#comment-353 The Sun Tue, 21 Nov 2006 18:11:36 +0000 http://www.thesunsfinancialdiary.com/2006/11/12/am-i-paying-too-much-for-my-401k/#comment-353 Hi Donna:It's true that when it comes to 401(k) investments, most of the time we simply don't have the options to choose low-cost funds due to the structure of the plan. But it's a good idea of talking to the employers about our concerns on the costs of our retirement. If every employee tells the company to get low-fee funds instead of using funds from loads, the company may listen and give everybody some better options on how to invest their money. Hi Donna:

It’s true that when it comes to 401(k) investments, most of the time we simply don’t have the options to choose low-cost funds due to the structure of the plan. But it’s a good idea of talking to the employers about our concerns on the costs of our retirement. If every employee tells the company to get low-fee funds instead of using funds from loads, the company may listen and give everybody some better options on how to invest their money.

]]> By: Donnahttp://www.thesunsfinancialdiary.com/personal-finance/am-i-paying-too-much-for-my-401k/#comment-351 Donna Tue, 21 Nov 2006 10:47:48 +0000 http://www.thesunsfinancialdiary.com/2006/11/12/am-i-paying-too-much-for-my-401k/#comment-351 Hi. The fees can be very painful. I have Vanguard which is traditionally viewed as low fee and my ER's are from .18-.25 depending on my fund (very low). But we checked out my husband's choices, and his fund actually had a load -- an up front expense to buy into the fund. It was 4.75% and then the ER was something like 1.85%. Thus, to make money, he had to first make almost 6%. Nuts! We changed him to the lowest fee funds we could (and tried not to cry over the other funds' fees) and he spoke to his bosses. The company is now looking into the choices, etc. to try to give better, lower expense funds, as options and to avoid, altogether, these high front-loaded funds.Only ignorance stops us from making better choices. But employers really need to get on the ball about what they are asking their employees to invest in. Hi. The fees can be very painful. I have Vanguard which is traditionally viewed as low fee and my ER’s are from .18-.25 depending on my fund (very low). But we checked out my husband’s choices, and his fund actually had a load — an up front expense to buy into the fund. It was 4.75% and then the ER was something like 1.85%. Thus, to make money, he had to first make almost 6%. Nuts! We changed him to the lowest fee funds we could (and tried not to cry over the other funds’ fees) and he spoke to his bosses. The company is now looking into the choices, etc. to try to give better, lower expense funds, as options and to avoid, altogether, these high front-loaded funds.

Only ignorance stops us from making better choices. But employers really need to get on the ball about what they are asking their employees to invest in.

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