401(k) fees could reduce average nest egg by 30%

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http://www.latimes.com/business/la-fi-401k-fees-20120530,0,6918904.story

"Here's the latest scary retirement statistic.

The average American couple could pay nearly $155,000 in fees for their 401(k) plans over their careers, reducing their eventual nest eggs by more than 30%, according to a new report.

Rather than the hypothetical $510,000 that a dual-earner couple could have at retirement with no fees, they would be left with only $355,000. The fees include explicit charges and indirect expenses, such as the cost that mutual funds incur to trade stocks.

Wealthier families could shell out nearly $278,000 in fees, according to the analysis by Demos, a nonpartisan research organization."

Love those fees-now you know why Wall Street pushed for the change from pensions to 401Ks.

lovecraft
Joined:
May. 8, 2012 12:06 pm