One thought on “Problem Memo on High 401k Fees in Corporate Retirement Plans”
Jonathan,
I agree with you. This is a very important issue. The financial services industry pushes this product very hard, and thus many people use 401k’s, including me. It’s actually a big part of my retirement plan, if not everything and I feel like I’m paying too much for it. I manage my own account, so I don’t pay Schwab 1% directly, but I pay 9 bucks a trade, which costs me over time. I’ve called them to get it lowered many times, but they just laugh at me. So I now try to just invest only in Schwab index funds, because they are the cheapest. You did a great job listing the fees and explaining how the fees can cost someone thousands of dollars over time. Maybe look into huge trade commission fee’s for purchase of individual stocks. Sometimes I feel the whole 401k is just a windfall for the financial industry. I look forward to hear what you propose.
Jonathan,
I agree with you. This is a very important issue. The financial services industry pushes this product very hard, and thus many people use 401k’s, including me. It’s actually a big part of my retirement plan, if not everything and I feel like I’m paying too much for it. I manage my own account, so I don’t pay Schwab 1% directly, but I pay 9 bucks a trade, which costs me over time. I’ve called them to get it lowered many times, but they just laugh at me. So I now try to just invest only in Schwab index funds, because they are the cheapest. You did a great job listing the fees and explaining how the fees can cost someone thousands of dollars over time. Maybe look into huge trade commission fee’s for purchase of individual stocks. Sometimes I feel the whole 401k is just a windfall for the financial industry. I look forward to hear what you propose.