401k Plans - Why Fees Matter

Just read a very interesting article about the structure of 401k fees and the "hidden" effect they can have on your ultimate investment performance. While this article is a bit academic in nature, there are many relevant takeaways that apply to nearly everyone who participates in, or sponsors a retirement plan:

• Over a 30-year career, paying an additional fee of .50% can reduce the purchasing
  power of savings at the time of retirement by one-eighth.
• Complete disclosure of fees help employers fulfill their fiduciary responsibility to ensure that the 401k plan they sponsor does not impose unreasonable costs for their employees.
• The Department of Labor is revising regulations to require sponsors to report the fees of their 401k plans more clearly to their employees.

As I have noted many times before, one of the keys to a successful 401k plan is the cost of the plan itself. These costs come in many forms, and it is important that you are able to identify as many of them as possible. At Symphony, all of the fees and costs are completely disclosed and transparent. Can your current provider make the same claim?