Comments on: Uncover The Hidden Fees In Your 401(k) Plan http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: JoeTaxpayer http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-2773 JoeTaxpayer Thu, 08 Oct 2009 21:47:27 +0000 http://blog.thefinancebuff.com/?p=239#comment-2773 Well, anon, the assumption of the 401(k) is that you will save while in say the 25% or 28% bracket but withdraw at 10% or 15%. Best case is 18% less. A 3%/yr extra expense makes the 401(k) moot, why bother? Deposit only if the match is great and only use other accounts. if no match, don't use 401(k) at all. Well, anon, the assumption of the 401(k) is that you will save while in say the 25% or 28% bracket but withdraw at 10% or 15%. Best case is 18% less. A 3%/yr extra expense makes the 401(k) moot, why bother? Deposit only if the match is great and only use other accounts. if no match, don't use 401(k) at all.

]]> By: Ted http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-541 Ted Wed, 26 Mar 2008 20:34:00 +0000 http://blog.thefinancebuff.com/?p=239#comment-541 I just put $100 in the balanced fund in my 401k (ER 0.90%) to conduct your fee test. I will post the results at the end of June. I just put $100 in the balanced fund in my 401k (ER 0.90%) to conduct your fee test. I will post the results at the end of June.

]]> By: TFB http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-539 TFB Tue, 25 Mar 2008 21:00:00 +0000 http://blog.thefinancebuff.com/?p=239#comment-539 @serbeer re: dividends - The reported fund performance should be consistent with the activities in your account. If dividends were reinvested before the end of the quarter, the reported performance number should reflect the reinvestment. If dividends were reinvested after the end of the quarter, then those dividends should be reflected in the performance number for the next quarter. Either way, you don't have to do anything special about it.<br/><br/>@anonymous re: what can you do about it - Knowing the number is the first step. It helps you make decisions on (1) whether to leave your money in your old 401k plan after you leave; (2) whether you should prioritize funding your own (Roth) IRA after you get the 401k match. It also helps if you want to lobby your employer about switching to a different 401k provider. Sometimes the current people in charge don't even know how high the fees are because the contract was signed years ago by somebody else. I was able to convince my former employer to switch to Vanguard after I showed the company owner he was paying more than 3% in fees from his own 401k account. The fees hit him the hardest because he had the largest balance in the plan. @serbeer re: dividends – The reported fund performance should be consistent with the activities in your account. If dividends were reinvested before the end of the quarter, the reported performance number should reflect the reinvestment. If dividends were reinvested after the end of the quarter, then those dividends should be reflected in the performance number for the next quarter. Either way, you don't have to do anything special about it.

@anonymous re: what can you do about it – Knowing the number is the first step. It helps you make decisions on (1) whether to leave your money in your old 401k plan after you leave; (2) whether you should prioritize funding your own (Roth) IRA after you get the 401k match. It also helps if you want to lobby your employer about switching to a different 401k provider. Sometimes the current people in charge don't even know how high the fees are because the contract was signed years ago by somebody else. I was able to convince my former employer to switch to Vanguard after I showed the company owner he was paying more than 3% in fees from his own 401k account. The fees hit him the hardest because he had the largest balance in the plan.

]]> By: serbeer http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-538 serbeer Tue, 25 Mar 2008 18:14:00 +0000 http://blog.thefinancebuff.com/?p=239#comment-538 Sometimes we can control it. For example, I still have money in my old employer's 401K since it has very good choice of funds AND since I don't want to move money into rollover IRA since I hope to convert my Non-deductible IRA to Roth in 2010. <br/><br/>But I'd appreciate if TFB answer my previous question about dividends. That may be a problem, I don't think dividends are factored in EOQ fund performance report... Of course, I can simply subtract them before looking at account's performance... But not sure what is the right thing to do. What do you suggest TFB? Sometimes we can control it. For example, I still have money in my old employer's 401K since it has very good choice of funds AND since I don't want to move money into rollover IRA since I hope to convert my Non-deductible IRA to Roth in 2010.

But I'd appreciate if TFB answer my previous question about dividends. That may be a problem, I don't think dividends are factored in EOQ fund performance report… Of course, I can simply subtract them before looking at account's performance… But not sure what is the right thing to do. What do you suggest TFB?

]]> By: Anonymous http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-536 Anonymous Tue, 25 Mar 2008 15:22:00 +0000 http://blog.thefinancebuff.com/?p=239#comment-536 TFB, why worry about something that you can control? Suppose you find out the fee is too high in your opinion. What are you going to do? Stop participating in 401K? We all are hostages of our companies in that regard, whatever they negotiate, we will have to accept TFB, why worry about something that you can control? Suppose you find out the fee is too high in your opinion. What are you going to do? Stop participating in 401K? We all are hostages of our companies in that regard, whatever they negotiate, we will have to accept

]]> By: Anonymous http://thefinancebuff.com/2008/03/uncover-hidden-fees-in-your-401k-plan.html/comment-page-1#comment-534 Anonymous Mon, 24 Mar 2008 23:34:00 +0000 http://blog.thefinancebuff.com/?p=239#comment-534 What about dividends that will be deposited in the last month of a quarter? Would they not impact the calculations? What about dividends that will be deposited in the last month of a quarter? Would they not impact the calculations?

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