Reducing Hidden Fees
Nom, nom, nom… Is that the sound of hidden fees munching away at your hard-earned dollars?
The Elusive Specimen
Investment management fees are sneaky things. And they can be detrimental to your savings! Fees are buried in a fund’s prospectus—requiring a load of math and a law degree to truly understand how that particular version applies to your unique situation. Fair? We think not.
The Curse of the Hidden Fee
On a $45,000 401k balance, excess hidden fees could cost you $37,000 over 25 years.¹
Fees Lurking in your 401k
Every 401k is a different animal. Each fund has an investment expense represented as a percentage. The percentage is multiplied by the amount you have invested in that fund and taken out every year. You probably don’t even see it or realize it. This happens with virtually every fund you invest in. The real problem is that these hidden fees can vary wildly by fund.
Combat the fees!
You have three options when it comes to battling hidden fees:
Remain in the dark with your fingers crossed that you aren’t racking any up.
Research every fund in your 401k and map out all the fees to find the lowest. Translate every fund ratio into actual dollars.
Is all this talk of hidden fees firing you up but still not convinced? Try out our hidden fee calculator to see how much you could be saving.