The 401k Easy Blog is not neutral and not without bias.
Our goal is to alert and educate 401k savers to the severe damage 401k fees are causing to their retirement security financial advisors and their partner 401k administrators are constantly “skimming” fees from workers’ 401k accounts, and according to non-profit AARP, most people saving for retirement in a 401k are totally unaware this skimming is going on. We hope this blog, and our videos, will begin to educate 401k savers, and top 401k fee skimming in its tracks.
Millions of Americans save for retirement in a 401k. They don’t think about it much because their 401k is saving money in the background. But something pretty horrible is happening in the background—-it’s called “401k pick-pocketing”. What’s 401k pick-pocketing? — It’s taking hidden fees from workers’ retirement savings. Who are pick-pockets? — Financial advisors, administrators and vendors selling 401k plans to unsuspecting companies, especially small US businesses. Non-profit AARP has done an expose about hidden 401k fees. You can download the free AARP report here.
How much damage is caused by 401k fees? According to AARP, a small 1% fee costs the average worker upwards of $150,000 over 30 year of 401k savings. The average 401k hit with hidden 401k fees is worth about $360,000 after 30 years. If the exact same 401k had no 401k fees deducted and pocketed by financial advisors and administrators, its value of would jump to half a million dollars at retirement! — That 401k fee AARP warns about can easily cause a 30% loss, and severe permanent damage to a worker’s retirement security
Our position on 401k fees is simple: they should be illegal. If a small business wants to offer a 401k 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 401k. No 401k fees should be deducted from employees’ retirement savings, EVER!
Topics That Will be Covered in the 401k Easy Blog Will Include:
- Low Fees 401k Plans – What Exactly Are They?
- Low Fees 401k Plans – Skimming the Cream from Your Retirement Savings
- Low Fees 401k Plans – How Do They Differ from Typical 401k Fees
- Low Fees 401k Plans – How Are They Harvested and Deducted?
- Low Fees 401k Plans – Where Does the Fee Money Go?
- Low Fees 401k Plans – Are the Fees Hidden from View?
- Low Fees 401k Plans – A Fee of .05% Doesn’t Sound Like A Big Deal, So What’s the Fuss?
- Low Fees 401k Plans – Does Your Employer Know Their Impact You and Your Coworkers?
- Low Fees 401k Plans – How Have Some Employers Benefited from 401k Fees in the Past?
- Low Fees 401k Plans – Are They the Same as Investment Management Fees?
- Low Fees 401k Plans – Class Action Lawsuits Abound.
- Low Fees 401k Plans – How Does a 1% Annual Fee Result in a $155,000 Loss to the Average Worker?
- Low Fees 401k Plans- Can the 401k Industry Survive Without Asset-Based Fees?
- Low Fees 401k Plans- Venture Capital Firms See Gold in Them Thar Hills.
- Low Fees 401k Plans- What Would a Small Business Pay for a 401k That Had No 40k Fees?
- Low Fees 401k Plans – The Future Looks Grim for 401k Fee-Based Plans.
- Low Fees 401k Plans – The Politics of 401k Fees. Who Supports Them and Who Opposes Them?
- Low Fees 401k Plans – Examples of Financial Industry Support for 401k Fees.
- Low Fees 401k Plans – So You’re Just Found Out You Are Paying 401k Fees. What Can You Do About It?
- Low Fees 401k Plans – Examples of Non-Profit Organizations That Oppose 40k Fees.
- Low Fees 401k Plans – What is an “All In” 401k Fee?
- Low Fees 401k Plans – Will 401k Fees Follow Smoking into the Dustbin of History?