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

1 post / 0 new

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

Currently Chatting

Earth's credit card has been maxed out!

If Earth's resources were a credit card, we have already maxed out our entire allocation for this year. The think thank Global Footprint Network announced that August 19th was “Earth Overshoot Day,” meaning that all the resources we use after that day exceed what our plant can produce in a single year.

Powered by Pressflow, an open source content management system