Fees related to a 401(k) can cost a median-income household about $155,000 over a lifetime, according to a recent study by InvestingNerd.
Consumers can see all the fees they are charged in their annual prospectus statement, but few understand the fees or know what is a good deal and what is not. Of those surveyed, nine out of 10 underestimated the fees they were charged from the 401(k).
The most known fee is the expense ration, which measure’s the fund’s annual operating expenses. Different accounts charge different fees, but there is a general three-layer fee structure. Besides expense ratio, there are other mutual fund-level fees and plan-level fees.
Fund-level fees come from the cost of purchasing a fund and trading costs that come with the fund. The costs average about 1 percent of assets.
Plan-level fees come from the providers and administrators of the plan. An average cost is about .72 percent of assets. Expense ratio fees generally take the largest amount with 1.105 percent of assets.
- Insights from the Behavioral Science Guy:...
- 7 things you can afford that you take for...
- Dave Ramsey says: Dave Ramsey: Pets and...
- Balancing act: How does your boss feel about...
- Laundry Love: Groups across the nation are...
- Some fear auto industry returning to bad habits
- Netflix unveils new way to share recommendations
- Freelancers and millennials help usher in the...
- Freelancers and millennials help usher... 12
- 'Deseret News National Edition': Common... 12
- Down payment for love: The costs and... 4
- 7 things you can afford that you take... 4
- Some fear auto industry returning to... 3
- US consumer spending dips 0.1 percent 2
- 13 ways Disney could use drones at its... 2
- Laundry Love: Groups across the nation... 2