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Of for a one K account holders have no idea they pay fees for their retirement plans.
Are you one of them it turns out -- average American household will pay nearly a 155000.
Dollars over the course of a lifetime in fees alone that's according to a new study.
You're right it all down Robert Hilton Smith -- policy analyst at -- most.
Welcome Robert -- I think most people out there when I talk to people laid out last are you paying fees and your borrowing -- now what about -- -- -- that's the response that I found as well you know but you know in this study we.
We view retirement as being kind of a necessary part of the middle class and when we.
When we looked at -- we really found all of the costs of retirement really being shifted onto individuals here absolutely right system you know.
And really they should really be shared among all the stakeholders which is you know everybody -- That idea but it's not true so.
Let's talk about how much money really is coming out of savers pockets made back at the end of the day we pull the -- -- study a 432000.
So the lower number of course -- median income to -- earner household the higher number if you have a slightly higher income right now.
How is it that nobody knows this is -- so comes out in drips and drabs and you just don't notice.
Yeah I mean because it doesn't show up anywhere on any of your account statements right when you get your quarterly statement and this is gonna change of course in September.
Come when -- Harley councilman right now we see as your balances and your various investments and you don't see the fees because they're taken out.
Behind the scenes and to figure out the fugitive to dig -- -- all of these plan documents which are.
You know nearly incomprehensible for a lot of people and some that these aren't even in those standards summary plan documents either these trading costs that I talk about the report which can be huge.
I'm in these documents at all and so in these -- can be the difference between retiring and retiring comfortable -- exactly you know and the way that we did our study this median income household.
They save in a way that most of us aren't able to save rate -- the way that we did they received consistently through their whole working lifetime and never have to withdraw and of course this in the case for most of us right.
But the big numbers even beyond -- 155000 dollars to 30% numbers the other number that talk about that no matter who we are.
When he got a dollar million dollars in your 401K fees are gonna cost you about 30%.
Balance just ridiculous so you say it's on Wall Street that's benefitting I mean that's that that's line that I can use you know in essence somebody's gonna retire Portland case -- I don't.
-- Up up up up that's residents.
So you say new worlds are coming into -- them how second impact me where am I gonna see these speed of disclosures well.
The way you're gonna see them depends actually maybe unfortunately on your particular retirement plan provider right.
Button you you will see them in your quarterly statement he -- on your balance.
In my campaign one might be -- -- -- nine of the statement but the begin -- -- somewhere it will be in this summer and it'll say.
It'll show that investments that you've got -- then you know you've got.
5000 dollars and this one -- say you paid.
500 dollars in -- this year but really unfortunately the problem this is that's not the whole picture right right because.
When you just look at the fees you paid this year it doesn't get -- fixed -- doesn't get the lifetime costs of these things right because that 500 dollars that you paid.
Would have been sitting there earning.
Funny how hard time I would have helped had retired he is exactly -- -- your -- of the 500 dollars one -- to the other is these trading costs right so these -- the cost basically both the conditions that people pay and the what -- -- bid ask spread and since you know and in -- trying to solve.
Right -- can make -- trade give to their cost basically whenever these mutual funds make a trade.
The costs get passed -- hospitals here I am looking forward to September because I wanna see these disclosures I appreciate your telling our viewers all about it because I know they're very concerned about these fees thank you so much for joining us today thanks appreciate -- much for have.
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