“so that the money market managers can reap their 15% of your savings”
If the managers of your 401K are charging 15%, you are being riped off. The top 25 low cost funds charge less than 1/2 of a percent per year:
http://www.theskilledinvestor.com/wp/best-money-market-funds-259.htm
>>If the managers of your 401K are charging 15%, you are being riped off. The top 25 low cost funds charge less than 1/2 of a percent per year:
When do they charge you that 1/2 percent? The stock market is programmed through computer trading to go up and down with great regularity. The fund managers tell us “little people” to “stay the course” while the big boys have their own pet brokers to take advantage of every dip and rise. Do the fund managers take 1/2 percent off every rise but not give it back during tomorrow’s (or next week’s) inevitable decline? Or do they charge their fees based on your actual annual balance increase?
Not trying to be argumentative. I really want to know. Over the entirety of the last 12 years, my interest-bearing checking account has had a higher rate of return than my 401k.