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401(k) Easy Blog—Mandate & Mission

Posted on by 401kEasy

The 401(k) Easy Blog is not neutral and not without bias.  

Our goal is to alert and educate 401(k) savers to the severe damage 401(k) fees are causing to their retirement security financial advisors and their partner 401(k) administrators are constantly “skimming” fees from workers’ 401(k) accounts, and according to non-profit AARP, most people saving for retirement in a 401(k) are totally unaware this skimming is going on. We hope this blog, and our videos, will begin to educate 401(k) savers, and top 401(k) fee skimming in its tracks.

Millions of Americans save for retirement in a 401(k). They don’t think about it much because their 401(k) is saving money in the background. But something pretty horrible is happening in the background—-it’s called “401(k) pick-pocketing”. What’s 401(k) pick-pocketing? — It’s taking hidden fees from workers’ retirement savings. Who are pick-pockets? — Financial advisors, administrators and vendors selling 401(k) plans to unsuspecting companies, especially small US businesses. Non-profit AARP has done an expose about hidden 401(k) fees. You can download the free AARP report here.

How much damage is caused by 401(k) fees? According to AARP, a small 1% fee costs the average worker upwards of $150,000 over 30 year of 401(k) savings. The average 401(k) hit with hidden 401(k) fees is worth about $360,000 after 30 years. If the exact same 401(k) had no 401(k) fees deducted and pocketed by financial advisors and administrators, its value of would jump to half a million dollars at retirement! — That 401(k) fee AARP warns about can easily cause a 30% loss, and severe permanent damage to a worker’s retirement security

Our position on 401(k) fees is simple: they should be illegal. If a small business wants to offer a 401(k) to its employees, we think that’s great. But the employer, not the employee-participants, should be paying 100% of the cost of the company’s 401(k). No 401(k) fees should be deducted from employees’ retirement savings, EVER!

Topics That Will be Covered in the 401(k) Easy Blog Will Include:

  • Low Fees 401(k) Plans – What Exactly Are They?
  • Low Fees 401(k) Plans – Skimming the Cream from Your Retirement Savings
  • Low Fees 401(k) Plans – How Do They Differ from Typical 401(k) Fees
  • Low Fees 401(k) Plans – How Are They Harvested and Deducted?
  • Low Fees 401(k) Plans – Where Does the Fee Money Go?
  • Low Fees 401(k) Plans – Are the Fees Hidden from View?
  • Low Fees 401(k) Plans – A Fee of .05% Doesn’t Sound Like A Big Deal, So What’s the Fuss?
  • Low Fees 401(k) Plans – Does Your Employer Know Their Impact You and Your Coworkers?
  • Low Fees 401(k) Plans – How Have Some Employers Benefited from 401(k) Fees in the Past?
  • Low Fees 401(k) Plans – Are They the Same as Investment Management Fees?
  • Low Fees 401(k) Plans – Class Action Lawsuits Abound.
  • Low Fees 401(k) Plans – How Does a 1% Annual Fee Result in a $155,000 Loss to the Average Worker?
  • Low Fees 401(k) Plans- Can the 401(k) Industry Survive Without Asset-Based Fees?
  • Low Fees 401(k) Plans- Venture Capital Firms See Gold in Them Thar Hills.
  • Low Fees 401(k) Plans- What Would a Small Business Pay for a 401(k) That Had No 40k Fees?
  • Low Fees 401(k) Plans – The Future Looks Grim for 401(k) Fee-Based Plans.
  • Low Fees 401(k) Plans – The Politics of 401(k) Fees. Who Supports Them and Who Opposes Them?
  • Low Fees 401(k) Plans – Examples of Financial Industry Support for 401(k) Fees.
  • Low Fees 401(k) Plans – So You’re Just Found Out You Are Paying 401(k) Fees. What Can You Do About It?
  • Low Fees 401(k) Plans – Examples of Non-Profit Organizations That Oppose 40k Fees.
  • Low Fees 401(k) Plans – What is an “All In” 401(k) Fee?
  • Low Fees 401(k) Plans – Will 401(k) Fees Follow Smoking into the Dustbin of History?