We believe 401(k) fees are unethical, unfair, and plain wrong. We hope that when you evaluate your 401(k), you consider the impact these 401(k) fees are having on your retirement security.
It was recently reported in the financial press that today there are more “401(k) millionaires” than at any other time in history. The two reasons for this are the significant run-up of the stock market and Covid, which kept people indoors, and saving, not spending money. The surplus money was redirected to their 401(k) plans.
There is no doubt that today there would be millions more “401(k) millionaires” except for one pesky little detail—401(k) fees.
401(k) savers are constantly being hurt by 401(k) fees skimmed from their accounts by financial advisors and most 401(k) providers—the skimming of 401(k) fees stunts the growth of all 401(k) balances. According to AAPR, approximately $150,000 is skimmed from the average 401(k) saver’s retirement account during the life of his or her 401(k). If this skimmed $150,000 was added back, millions more people would have 401(k) balances today that exceed $1 million.
So why are there not more 401(k) millionaires today? Ask your financial advisor or 401(k) provider….if they are honest with you, they will acknowledge the impact 401(k) fees cost you, personally.