The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: HAULIN3 on February 24, 2014, 12:20:54 PM
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I looked at our statements on our 401k from 12/1/05 to today, our account was charged $9,017.87 in fees & expenses. This seems really really bad...
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This is meaningless without balances, what funds, the various fees structured for each fund (expense ratio, front loaded...etc.). Out of context numbers don't seem bad, they just seem like numbers.
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I just fell out of my chair.
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I bet your balances are high though!
Possibly high enough that it's worth finding a new job so you can roll this thing over to a IRA and slash the fees to less than 0.20% from whatever they are now.
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This is meaningless without balances, what funds, the various fees structured for each fund (expense ratio, front loaded...etc.). Out of context numbers don't seem bad, they just seem like numbers.
I like to believe that Haulin3 has $1 million in the 401k. So at $1100/year that makes for the expense ratio of 0.11%. Sounds about right to me ;-)
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This is meaningless without balances, what funds, the various fees structured for each fund (expense ratio, front loaded...etc.). Out of context numbers don't seem bad, they just seem like numbers.
I like to believe that Haulin3 has $1 million in the 401k. So at $1100/year that makes for the expense ratio of 0.11%. Sounds about right to me ;-)
http://www.sec.gov/investor/tools/mfcc/holding-period.htm
Play around with it. It is rather easy with average returns and an initial portfolio of $130k with a .77% yield to hit 12k in fees over the course of 9 years. That's with no front or back loaded fees.
Like I said context is everything.
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yikes!
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Exactly -- ALL 401ks have fees; it costs money to run them -- but the whole number means nothing, it's the percentage that matters. If the fund manager is only skimming .027% (i.e., $0.27 per $1,000, like mine does), well, that's just fine. If, on the other hand, they're skimming 1.5%, then you're getting robbed.