Are we being unduly harsh when we refer to 401(k) financial advisors and 401(k) providers as 401(k0 pick-pockets? I don\u2019t think so, and here\u2019s why:<\/p>\n\n\n\n
Most 401(k) participants are unaware of the fact that fees are being deducted every quarter from their 401(k)-retirement savings. AARP has done an expose on 401(k) fees and the significant damage they do to a worker\u2019s retirement savings. This AARP study proves the majority of 401(k) participants, especially those working for small companies, are unaware that money is being deducted in the form of 401(k) fees and commissions. On average, after 30 years of working and saving, the typical 401(k) account exposed to 401(k) fees has lost nearly 40% of its value. AAPR calculates the average loss to the average 401(k) to be approximately $150,000 after 30 years of savings. This is a financial loss to the worker and a financial profit to the 401(k) provider, and we do not think it\u2019s ethical, especially when the fees are hidden, as reported in the AARP expose.<\/p>\n\n\n\n
The 401(k) fees being extracted from employees\u2019 401(k) accounts are going directly into the pockets of 401(k) financial advisors and 401(k) recordkeepers who are small businesses with fee-laden 401(k) plans. These small plans are very lucrative for the 401(k) providers, but a very bad deal for the workers using them to save their retirement. To learn more about this 401(k) fees, who is collecting them, and the damage they are doing to workers\u2019 retirement security, simply go to the AAPR website and download the free report titled, 401(k) Participants\u2019 Awareness of 401(k) Fees.<\/p>\n","protected":false},"excerpt":{"rendered":"
Are we being unduly harsh when we refer to 401(k) financial advisors and 401(k) providers as 401(k0 pick-pockets? I don\u2019t think so, and here\u2019s why: Examining the Role of 401(k) Financial Advisors and Providers Most 401(k) participants are unaware of the fact that fees are being deducted every quarter from their 401(k)-retirement savings. AARP has…<\/p>\n","protected":false},"author":1,"featured_media":7,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/posts\/6","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/comments?post=6"}],"version-history":[{"count":1,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/posts\/6\/revisions"}],"predecessor-version":[{"id":8,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/posts\/6\/revisions\/8"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/media\/7"}],"wp:attachment":[{"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/media?parent=6"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/categories?post=6"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nofees401k.com\/blog\/wp-json\/wp\/v2\/tags?post=6"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}