Do you know what kind of fees you're paying on your 401(k) account? Most people don't, according to a new survey from LIMRA. But that's not necessarily bad news, since a lot of people assume they're paying far more than they actually are.
The survey found that a whopping 42 percent of all plan participants who ventured a guess thought they were paying 10 percent or more of their annual assets in fees, which isn't anywhere close to the case. Only a third estimated those fees as below 2 percent, which is far more accurate. Another 22 percent thought they were paying no fees at all. And half said they had no idea what those fees were.
For the record, fees for 401(k) plans with less than $2.5 million in assets average 1.46 percent of assets. For plans with more than $50 million in assets, those fees drop all the way down to 1.03 percent.
No comments:
Post a Comment