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Effort to boost transparency and new federal rule which just went into effect.
Will now allow you know just how much your retirement plan is costing you no kidding.
Here to explain what that means for you and your company -- -- chairman and CEO about -- -- financial services -- great to see you are right.
Jump right in here how much disclosure we really getting here.
We're going to get a ton mobile new law requires plan providers to tell employers.
How much money they're paying in fees and if they don't tell your boss within ninety days -- your boss is required to fire them so this is a really good deal for consumers -- Up 30% of us have no idea that we're paying fees on our 401K I think -- That's a ton of folks out there how significant are these fees.
There are huge.
Many in many cases people are paying two or three or even 4% per year and they have no idea it's happening don't -- your boss he doesn't know either.
The fees have been almost completely undisclosed for years and that is finally getting reconcile.
What you know a lot of people say to -- OK -- disclosure of who cares that doesn't mean they can't charge GO they can't charge you just gonna now I'm Richard you're having to pay.
Don't you think though that this is -- one step down the road of starting to say look 4% is too much we get a rain in -- -- it's.
Exactly right and you can't.
Control the fees until you know what they are so disclosure is the first step.
And I think once people begin to discover how much they're paying in fees -- not gonna -- afford anymore and that is gonna get people start price shopping.
That will get prices come down and it will translate to huge amounts of money your pocketbook a one per -- -- Jerry over the course of your working career.
Is a 150000.
Dollars in your account retirement wow yeah.
-- incentive to lower.
We came up with a 155000.
The average that the average household pays it.
Over their lifetime -- -- is this just this isn't very big deal for people of course how easy is this disclosure going to be -- -- read because I tell you I've heard these promises before that they're gonna share information and then.
Figuring it out can be tough.
You just hit the Achilles -- the regulation we've already seen an advance look at some of the disclosure documents the plan providers are offering.
And their written by lawyers and -- are as bad as a prospectus they are so difficult to understand we fear that it's not going to be providing the disclosure that the regulators had in mind.
So the employer and the employee you're gonna have to be insistent.
Clear easy to understand plain English tell me what I'm paying it shouldn't take thirty pages do do it and if they don't complied.
Firebomb and hire someone else that's why are 41 K plan has proven so popular it's simple easy to understand and very low in cost so Rick tell -- what's the one number I should be looking for that when that when I see this out what what what are my searching for.
-- looking for two simple numbers -- number one what does the cost of the plan this is what your boss pays and number two what is the cost of the investments.
In the plan that's what you pay as the employee.
Simple easy to understand numbers what am -- paying it should be able to be explained on a single sheet of paper and what should those numbers -- with so what's a fair amount.
Well well under 2% well under 2% if you get anything that is anywhere near approaching a 2% number.
You should be firing somebody pretty darn quick and hiring somebody else.
Well -- that was a good guide thanks for coming on tonight really appreciate your help.
-- -- -- Thank --
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