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Thursday, June 9, 2011

Why SocSec and Public Pensions Need Support - NPR 401(k) Fees Can Shave Thousands From Nest Egg

Everyone should have access to a "public pension" system. They are far more efficient in terms of cost and an individuals effort to manage a 401K (etc.).  The NPR story of course uses a $100K balance ... everybody has that much ... right!
But most of those plans have fees and hidden expenses. And as personal finance columnist Ron Lieber of The New York Times tells NPR's Linda Wertheimer, those fees can mean that an investor pays more than $1,000 annually.
... "The problem is, if you're losing that much money each year, over time, and you're investing over many decades in these funds, it's a lot of money to be losing each year," Lieber says. "I mean, it's $1,500 out of a $100,000 balance each year."
Those losses add up. Over several decades, an investor could pay more than $100,000 in fees by the time retirement arrives. Federal law says that such fees have to be "reasonable," Lieber says. But most investors have no point of comparison to know where to draw the line.
Hear the NPR story by clicking on the title above.

WI 1848 Forward: #SocSec & Public #Pensions Need Support - #NPR #401(k) Fees Shave Thousands From Nest Egg #47% #AARP

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