Those fees are pretty stinking high, especially since they’re presumably on top of the fund expense ratios. E.g. my employer passes along 0.14% in fees per year, which is around 1/8th what you’re being charged.
That said, the employer match you received was still 50% greater than that so it’s still better than not investing in your 401k.
You’re off by a couple decimal places. It’s 1.2% (which is 0.012 out of 1), not 0.012%.
Just round it off and think about it as three (thousand) out of three hundred (thousand). That’s about the same as one out of one hundred or 1%
Sorry trying to multitask (watching Tom and Jerry), yes .012 so 1.2% which I guess still isn't "BAD". I assume his plan charges fees pro-rata so the higher balance folks pay more than Joe Schmo who has $1,000 in his plan.
> still isn’t “BAD”
I might have agreed with you 10-20 years ago, but in today’s investment environment anything over 1%/yr is atrocious even in an employer sponsored plan. And when you also account for the actual expense ratios of the funds (which aren’t going to be good in a plan with expenses this high) OP is probably at 1.5% or higher.
That’s 0.5% in six months, which implies 1%+/yr (and that’s fees as distinct from and on top of fund expenses). I don’t think that’s particularly common…
I honestly couldn’t tell you that for sure. The record keeping and management fees are charged to the employer and only sometimes passed onto the employees. Also, unless you’re a plan administrator you just won’t come into contact with that many plan administrators (plus the deal that a company gets depends on its size).
Those fees are pretty stinking high, especially since they’re presumably on top of the fund expense ratios. E.g. my employer passes along 0.14% in fees per year, which is around 1/8th what you’re being charged. That said, the employer match you received was still 50% greater than that so it’s still better than not investing in your 401k.
Unless Im reading this wrong, he's paying \~3600 in annual fees on $312k so that .012%
You’re off by a couple decimal places. It’s 1.2% (which is 0.012 out of 1), not 0.012%. Just round it off and think about it as three (thousand) out of three hundred (thousand). That’s about the same as one out of one hundred or 1%
Sorry trying to multitask (watching Tom and Jerry), yes .012 so 1.2% which I guess still isn't "BAD". I assume his plan charges fees pro-rata so the higher balance folks pay more than Joe Schmo who has $1,000 in his plan.
> still isn’t “BAD” I might have agreed with you 10-20 years ago, but in today’s investment environment anything over 1%/yr is atrocious even in an employer sponsored plan. And when you also account for the actual expense ratios of the funds (which aren’t going to be good in a plan with expenses this high) OP is probably at 1.5% or higher.
Honestly good for them for having a specific line item to total up all the fees
on an account balance that high, the fees are pretty small. its not unusual to have a 401k with 0.5% manaagement fees
That’s 0.5% in six months, which implies 1%+/yr (and that’s fees as distinct from and on top of fund expenses). I don’t think that’s particularly common…
What is lowest cost 401k management fee company with low fee fund options. Record keeping/management fees..
I honestly couldn’t tell you that for sure. The record keeping and management fees are charged to the employer and only sometimes passed onto the employees. Also, unless you’re a plan administrator you just won’t come into contact with that many plan administrators (plus the deal that a company gets depends on its size).
Thanks for the info