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Maybe the Gubment has done something right for once? Everyone might want to use this as an opportunity to review their retirement plans..
http://money.cnn.com/2012/07/25/reti...t+(Latest+News)
http://money.cnn.com/2012/07/25/reti...t+(Latest+News)
(MONEY Magazine) -- Not sure what your retirement plan is costing you?
No wonder, since most 401(k) providers don't trumpet your fees. That changes in August, when new federal rules require clear cost disclosures for your company's plan, on average, and for your specific account.
Here's what you might see in your fall quarterly statement -- and what to make of it.
Administrative fees. Statements will show your fees (also called "reductions") for record keeping and other administrative costs, along with fees you might pay for personalized services such as a 401(k) loan. The smaller the plan, the higher your likely cost.
The details. Your statement will have an explanation of your administrative and personal fees: how they're calculated, who pays them (it could be your employer), and how often they're assessed.
Investment fees. These are costs tied to individual investments, shown as a percentage of a fund's value and as dollars per $1,000. As with mutual funds held outside a 401(k), money isn't deducted from your balance but does diminish your fund's returns.
BENCHMARKS
When it comes to fees, less is more. Here are the average expenses (investing plus administrative) as a percentage of assets for four different sizes of plans.
Biggest plans
Total assets: more than $1 billion
Average number of participants: 53,650
Average expenses: 0.36%
Large plans
Total assets: $100 million to $1 billion
Average number of participants: 6,324
Average expenses: 0.53%
Medium plans
Total assets: $10 million to $100 million
Average number of participants: 858
Average expenses: 0.85%
Smallest plans
Total assets: less than $10 million
Average number of participants: 42
Average expenses: 1.4%
No wonder, since most 401(k) providers don't trumpet your fees. That changes in August, when new federal rules require clear cost disclosures for your company's plan, on average, and for your specific account.
Here's what you might see in your fall quarterly statement -- and what to make of it.
Administrative fees. Statements will show your fees (also called "reductions") for record keeping and other administrative costs, along with fees you might pay for personalized services such as a 401(k) loan. The smaller the plan, the higher your likely cost.
The details. Your statement will have an explanation of your administrative and personal fees: how they're calculated, who pays them (it could be your employer), and how often they're assessed.
Investment fees. These are costs tied to individual investments, shown as a percentage of a fund's value and as dollars per $1,000. As with mutual funds held outside a 401(k), money isn't deducted from your balance but does diminish your fund's returns.
BENCHMARKS
When it comes to fees, less is more. Here are the average expenses (investing plus administrative) as a percentage of assets for four different sizes of plans.
Biggest plans
Total assets: more than $1 billion
Average number of participants: 53,650
Average expenses: 0.36%
Large plans
Total assets: $100 million to $1 billion
Average number of participants: 6,324
Average expenses: 0.53%
Medium plans
Total assets: $10 million to $100 million
Average number of participants: 858
Average expenses: 0.85%
Smallest plans
Total assets: less than $10 million
Average number of participants: 42
Average expenses: 1.4%