In The Smartest 401(k) Book You'll Ever Read (which I wrote in 2008), I lamented the sorry state of 401(k) plans.
I noted they were beset with bloated fees. The investment options were often dominated by expensive, actively managed funds, likely to underperform less expensive index funds over the long-term.
I recommended a total overhaul of the system.
Americans who are saving for retirement in company-sponsored 401(k) plans have paid billions of dollars of excess expenses to Wall Street investment firms. There are layers and layers of fees for consulting, money management, transa...
Q: My company's 401(k) plan charges high administrative fees, and the expense ratios on the investments offered are too high. How do I maximize my retirement savings? You know those GIFs of people wildly and aggressively clapping? T...
I can find no credible data supporting the inclusion of actively managed funds in 401(k) plans or individual portfolios. Yet, these funds dominate the investment options in most plans.
The importance of keeping investment fees low is a good rule of thumb, not limited to 401(k) plans. We want to be mindful of the fees we pay when it comes to any investment.