Now that retirement plans are required to disclose their fees, it’s up to participants and their financial advisors to wade through the information to find out what the costs of their plans really are.
Philip Rousseaux, founder and president of Everest Wealth Management Inc., points out that companies have had to be more transparent since fee disclosure regulations went into effect in July 2012, but that hasn’t really been the case.
Many companies dump a lot of documents on their participants and expect them to find out what fees they are paying, in general, if they have the stamina to dig through everything provided.
“For many ‘average Joes’ with 401(k) and 403(b) savings plans, disclosure hasn’t helped at all,” he said. “The paperwork supplied can be so dense and full of jargon they can’t make heads or tails of it.”