Inside The Plan

The 411 on 401k fees

Nov 9, 2018

In this episode of Inside the Plan, Bill Bush and Andy Bush, Advisors at Horizon Financial Group give us the 411 on fees associated with our 401k. They delve into why we pay for our plans and how we can get the most value out of our plan.

Show Notes:

  • 1:00--- There are fees associated with your 401k.
  • 1:52--- There is a cost associated with the recordkeeper--the company keeping track of your investments and sending you statements.
  • 2:40--- The investing itself also costs money even if it is a passive holding account. It costs even more when the advisor.
  • 4:16--- Retirement fund advisors provide education. A lot of times these services exist but participants pay without using these services.
  • 6:20--- Depending on the size of the plan, fees can vary greatly. you can find more information on the fees on your statement. The plan sponsor has a responsibility to give this report to participants if it is not in your statement.
  • 7:20--- When you look at your statement, the number you see is the number after fees.
  • 8:22--- Any service you get you pay for it. Make sure you are taking advantage of the advisor available to you.

3 Key Points:

  1. If you have a 401k plan, chances are you are paying fees to have the service.
  2. The fees are associated with the recordkeeping company as well as how you are making investments.
  3. Keep track of your fees via your statements to ensure you are getting the most value out of your plan.

Tweetable Quotes:

-       “Inside a 401k plan, there are fees.” –Bil.

-       “There is a misconception that 401k are free.” –Andy.

-       “What in life is free? The air.” –Bill and Andy.

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Resources Mentioned:

The Confident Wealth Podcast-- Discover more about the Podcast

Horizon Financial Group

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