2013 Retirement Resolution: Understand 401(k) Fees

401(k) plans are notorious for charging outrageous fees to manage your account and it’s amazing how much those fees can drain your retirement fund. So, make this 2013 retirement resolution: understand 401(k) fees.

Your 401(k) could be bleeding money. Make this 2013 retirement resolution: understand 401(k) fees.

2013 retirement resolution: understand 401(k) fees

The fees your retirement fund management team charges you to take care of your money range from fractions of a percent to several percent, depending on the company and the funds where you have your money. While it may not sound like much, over the years it can add up to tens of thousands — or even hundreds of thousands — of dollars.

That money should be yours, and what you’re spending it on isn’t a bargain, considering the quality of the investment advice most of us get.

Finally, you have a way to see what you’re being charged, and although it will still take some work to figure it all out, it’s well worth it.

Make use of new 401(k) fee information.

Retirement savers will get new information about the fees and other charges being deducted from their 401(k) this year in the form of quarterly and annual statements. Take a look at the costs of your investment options and how your returns compare to the benchmark. If your funds aren’t delivering enough value to be worth the cost, consider switching to investments with lower fees. “Ideally you should be paying no more than half a percent on investments in your 401(k),” says Mark Jarvis. “You need to make sure that all fees on investments, whether in a 401(k) or IRA or other account, are as low as possible.”

Chances are, your 401(k) account is being over-charged and there are more economical options in your plan. If you must put money into a 401(k) plan, make this 2013 retirement resolution: understand 401(k) fees.

 Click here to learn more about 401(k) fees and other 2013 retirement resolutions.

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