For many of us who have a 401K plan as our primary retirement vehicle, it’s time to wake up and realize that our plan’s performance has not been as good as what our financial advisor was telling us. You might not be a fan of this administration, but they got it right by requiring the financial community to be more forthcoming on fees. This is an area that has been hidden behind smoke screens for years and even savvy administrators have not been able to get the whole story.
Why is this new rule important? Because over 15-20 years, these fees add up and given the lackluster performance over the past 10 years of many money managers, it could be the difference between making money or losing it. If you’re serious about maximizing your 401K return, here’s a great article from SmartMoney that’s worth reading.