Comments on: Review Your 401K Plan Fees http://www.myretirementblog.com/review-your-401k-plan-fees.html Retire happy, healthy and wise. Sat, 22 Nov 2008 13:12:11 +0000 http://wordpress.org/?v=2.6.3 By: Jerry Lynch CFP http://www.myretirementblog.com/review-your-401k-plan-fees.html#comment-6130 Jerry Lynch CFP Thu, 05 Apr 2007 23:33:14 +0000 http://www.myretirementblog.com/review-your-401k-plan-fees.html#comment-6130 Nobody likes paying fees but the reality is you need to in order to get the service. Employers have a fiduciary responsibality to make sure their employees have the ability to make smart decisions in the plan. Having cheap funds does not insure that. Generally an advisor makes 1/2% in a 401(k) plan so if the plan has $250,000 in assets, they make about $1,250. That is not huge money and considering it takes about 10 hours a year to manage that plan. My point is simply this, if the fees pay a good advisor and your employees make better decisions, then the fees are justified and should result with your employees having more money. Nobody likes paying fees but the reality is you need to in order to get the service. Employers have a fiduciary responsibality to make sure their employees have the ability to make smart decisions in the plan. Having cheap funds does not insure that. Generally an advisor makes 1/2% in a 401(k) plan so if the plan has $250,000 in assets, they make about $1,250. That is not huge money and considering it takes about 10 hours a year to manage that plan.

My point is simply this, if the fees pay a good advisor and your employees make better decisions, then the fees are justified and should result with your employees having more money.

]]> By: Shadox http://www.myretirementblog.com/review-your-401k-plan-fees.html#comment-3235 Shadox Mon, 19 Mar 2007 02:07:57 +0000 http://www.myretirementblog.com/review-your-401k-plan-fees.html#comment-3235 I am on the management committee of my company's 401(k) plan. We are now thinking about moving to a new plan provider because the fees and the performacne of the funds offered by our existing vendor (ING) are both horrible. The number one thing you should do if your company offers a bad 401(k) plan is complain to your HR group. I am on the management committee of my company’s 401(k) plan. We are now thinking about moving to a new plan provider because the fees and the performacne of the funds offered by our existing vendor (ING) are both horrible.

The number one thing you should do if your company offers a bad 401(k) plan is complain to your HR group.

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