>>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.
The fees that we are talking about are charged annually (once per year). If you look at the link that I gave the annual rates for those 25 funds vary from
#1) Gabelli US Treasury Money Market Fund – GABXX
Annual Money Funds Management Expense Ratio ____0.08%
Total Money Fund Portfolio Assets ($B) ___________$1.1
Annualized 3-year Money Market Yield ____________4.2%
Minimum Money Market Account Investment _______$10,000
to
#25) Fidelity Select Money Market Portfolio – FSLXX
Annual Money Funds Management Expense Ratio ____0.39%
Total Money Fund Portfolio Assets ($B) ___________$6.7
Annualized 3-year Money Market Yield ____________4.4%
Minimum Money Market Account Investment _______$2,500
I conservatively said that they were less than 1/2 of one percent. As you can see, they actualy range from .08% to .39%.
Dude if your young go 100% growth.