Have you ever wondered about the impact the fees siphoned off by the firm managing your 401(k) will have in the long run? And what’s the overall quality of your company’s plan? If you work for a larger organization, check out the website BrightScope and you’ll get the big picture.
For example, we did a search on a previous employer’s retirement plan and found that BrightScope gave it a rating of slightly below average for its peer group. That meant that a working stiff at this corporation, as opposed to an employee in a company with a top-rated plan, would lose an additional $26,900 in retirement savings and would have to work 11 more years to retire with the same amount of money. Ouch. Double ouch.
For anyone who’s left a 401(k) with a previous employer, this website can be enlightening and could inspire you to roll it all over to an Independent Retirement Account, Roth or otherwise. When looking at your account with a current employer, the idea is that if the numbers are grim, you can use some gentle persuasion to get an upgraded plan. …
“If you don’t like what you see, talk to your plan manager about making changes. As for the fees for your particular investments, you might discover that another investment among your options costs less and has turned in comparable returns or better. In that case, it makes sense to switch,” notes a Kiplinger article, “Smart Ways to Boost Your 401(k).”
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