The average person pays about $250 a year in 401(k) fees, according to Investment Company Institute, which would cost a dual-income household $20,000 over 40 years. A survey by the Transamerica Center for Retirement Studies found that 71% of employees were not aware that 401(k)s even had fees. There are a few suggestions workers can use to avoid hidden 401(k) fees. Some of the 401(k) fees come from managing the fund, but the costs on index funds are a fraction of 401(k) costs. IRAs can be an alternative investment vehicle, unless the 401(k) offers matching contributions. Insurance-based products like variable annuities may charge 401(k) participants 2% annually. Borrowing from 401(k)s can result in service fees. Employers can look into a plan’s fee and try to get better options.
SEC Disclosure Effectiveness Testing Act also requires the agency to review and test its existing disclosures for retail investors.
The firm sees less issuer excitement about plans that cost more than $50 per month.
They discussed how advisors can improve their charity and socially responsible investing services.
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