Are you saving in your job’s 401k plan?
Whether you’ve just started, or you’ve been investing for years–you’re taking important steps towards financial security in your golden years.
When it comes to your savings potential, making smart, informed investment decisions can have a real impact on how much your savings can grow. That’s why it’s important to learn about the investment options you have to choose from in your plan and understand all the costs involved with those investments. Nothing in life (or in your 401k plan) is free–all services have costs, including investment
Learn about the investment options you have to choose from in your plan and understand the costs involved with those investments–all services have costs even those related to investments through your retirement plan.
In recent years, there’s been a lot of media attention on 401k cost and the fees both business owners and their employees are paying for 401k investments and recordkeeping services – and for good reason.
Differences in fees as small as 0.1% per year can lower your account balance by thousands of dollars by the time you retire.
For example: Assume an employee with 35 years until retirement has a current 401k account balance of $25,000 and earns an average investment return of 7% per year until retirement. Without any additional contributions, here is how 401k fees could affect the account balance at retirement.
Total 401k Fees