SENATE BILL: Small Investor Protection Act (Law'd)

[🐒Gods of Prosperity🔱🐲💸]

What is the work and/or cost involved in managing a 401K account?  I really don't know much about this but I wonder if $1-2/month or so isn't a reasonable price.

[🐒Gods of Prosperity🔱🐲💸]

If you're the average Joe putting $200/month in their 401k, that extra 1% could cost you over $100 000 over the course of a working life, reducing your income substantially in retirement.

DC, I don't think I understand your math.  Do you mean $1000?  I'm looking at this 4000 years of working life is a long time

[🐒Gods of Prosperity🔱🐲💸]

Nay

[🐒Gods of Prosperity🔱🐲💸]

If you're the average Joe putting $200/month in their 401k, that extra 1% could cost you over $100 000 over the course of a working life, reducing your income substantially in retirement.

DC, I don't think I understand your math.  Do you mean $1000?  I'm looking at this 4000 years of working life is a long time

I assumed that a balanced fund would earn 6%/yr before costs. A 1.25% fee would reduce that to 4.75%.

A) $200/mth @ 6% for 40 yrs  = $371 000 give or take

B) $200/mth @ 4.75% for 40 yrs  = $273 000 or so.

I should've aid 1.25% in my original example but oh well. OTOH I've seen 401(k) fees in excess of 2%

I was thinking the 1% would be taken out of the $200 monthly so instead it would be $198/month that was invested, but I guess that's not how it works.  When is the percentage on the assets collected?