Would you pay hundreds of thousands of dollars if you could get the same (or better) product for pennies on the dollar? Probably not. Unfortunately, that’s exactly what people are doing with their 401k plans. The management fees these plans charge sound very innocuous. How much does 1 percent really add up to? The answer is more than you think.
Future Advisor was kind enough to prepare this infographic for us today, which look at some of the very best, and the very worst 401k plans, and what that percentage really adds up to.
Where possible, utilize low fee index funds, and you can save hundreds of thousands of dollars. You can also see how your 401k plan stacks up here.
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{ 2 comments… read them below or add one }
Very nice info graphic great way to illustrate the impact of plan fees on the savings efforts of plan participants.
Wow. This story is an eye opener. Thanks for posting it. I manage the SIMPLE retirement plan for my employees at a small business I own. Only fee is the funds expense ratios of around .15%. Sure beats that 1% ratio.