Monday, February 05, 2007

401(k) - The Hidden Fees

I don't manage 401(k) or retirement plans, but I'm a huge proponent of them for all businesses - it is a highly desired and inexpensive employee benefit.

I find that a number of small businesses are content to use a friend or acquaintance to manage the recordkeeping and money management of their 401(k)'s - and this is where it backfires.

You should immediately demand that your fund manager disclose all the fees - most of them borne by participants - in the plan. It should be Priority One as the new year gets underway.

It's great that government is finally doing something about it - but I fear the solution will be a long time away, and those fees add up every day.

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