Starting this month, 401(k) providers must clearly disclose the fees they charge to employers for the retirement savings plans, The fees include investment management, record keeping, administration and other services. The employers must then share that information with their plan participants (employees).
The fresh procedure is actually aimed in order to aid employees recognize where their hard-earned cash is going and enables them to make decisions that are more enlightened. Don’t let these new disclosure norms keep you away from making your investment plans for retirement and take the following steps, so that you are not in for an unpleasant surprise down the road. Rather get the full picture of how much of your money is invested in actual stocks/bonds vs. how much is going toward fees.