Posted on 12/03/2006 5:21:23 PM PST by Clintonfatigued
1. "We're making a mint on your 401(k) even if you're not."
The number of 401(k) investors has soared in the past decade, to nearly 50 million from 28 million, according to Cerulli Associates. That torrid growth has created impressive efficiencies for the folks who run your plan. But it doesn't mean those savings show up in your account; in fact, they could be coming straight out of it. In a practice known as revenue sharing, providers get a cut of the expense ratio on the funds in your 401(k) to cover day-to-day "administrative costs." Since the fee is charged as a percentage of assets, that revenue increases as your 401(k) grows, even though those costs stay virtually the same.
(Excerpt) Read more at money.aol.com ...
You could become a federal employee. I did.
I'm eligible to retire now at age 50 on a full pension, which will start out at over $50,000 with max. survivor benefits. The pension is indexed for inflation, too, so as inflation goes up, so does the pension.
I've also got a government 401(k) plan which includes a government match of 5%. And let's not forget the federal government health plan (most of which is paid for by the government), which retirees and their families can remain in for as long as the retiree or spouse are alive.
All in all, not a bad deal!
LOL
I have heard that the best way to make a million in the restaurant business is to start with 2 million.
Yes, those mean, evil, capitalist 401(k) providers are ripping you off blind; but the kind, compassionate government is assuring that you get everything you've got coming to you with Social Security...
HAHAHAHAHAHA!!!!
Reagan80
/sarcasm finally off/
I wish I could tell you, but the fact that I know absolutely nothing about you, your circumstances, or you finances, precludes me from suggesting or hinting at anything. Regulations also forbid it on either forums, or chat sites, etc. Very sorry, gsg...
Bingo......assett allocation funds are just a scheme to put more money in the mangers hands. However, ignore expense ratios and front loads and compare the performance of funds over time. Some no load, low expense ratio funds can under perform higher priced ones in the same class. It'll drive you nuts.
I don't care! It's still the best place to put money while you're workin there!! Specially if the boss is plunkin in "free tax free match money!" After one quits, after making the best possible choices while employed there... Roll me over in the clover and do it again in my own personal self directed IRA, right?
Well, there's one thing about low expense ratio index funds... You'll never fall below that market index, but you'll never beat it either, right?
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