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More hidden fees the government mandating new rules for 41 K providers that they must now disclose feed information for all participants.
And CEO says that investors can use these new fee disclosures to boost their retirement balances personal capital CEO and former PayPal -- CEO.
Bill Harris joins us now so -- you know and Hartford mutual fund investors always the fees have been.
-- kind of a catch a few well with regards to performance do you think it's a good thing that the rules are changing.
Well I think it's a vital thing.
So for so long.
That true fees not just within the funds but also within the plan itself additional fees such as.
Plan administration fees and -- send surrender fees and things like that have been hidden.
The -- the participant has been unable to know exactly how much the pain now finally they'll be able to get this information.
Bill I heard some argue correct me if I'm wrong but I heard that there are so many fees that are buried in -- in these accounts that you may actually lose.
Half of your 41 K plan by the time -- -- retire because of these fees is that true.
That is true.
That is true you know what we've tried to do is take this complex welter of fees and boil it down to one simple number what is the total.
Annual fee that you will be -- and if you take a look at with this new information the government has mandated you can now take a look and see.
And if you've got a plan that is less than 1% total fees because that's a good plan green between one and 2%.
Bad plan yellow over 2% and unfortunately there are a number of plans that are over 2% total all in -- Read ugly.
Where where the best places that bill to evaluate mutual funds we also Morningstar.
Mean there's plenty of that magazines and then journals and papers but tells what to do able where's the best place to do -- -- For these fun.
Well there there are a lot of great -- to do including our site personal capital dot com.
But -- you need to see for your 41 K you need more than just the information on the fees within the funds because they're also -- fees within the 401K plans themselves.
And starting September 10 that information will be available on our side as well.
Free easy just five minutes and you'll be able to see not only which are paying now but what it means over the thirty years -- your working life.
Bill what about just putting at all and an ETF -- leaving at that no fees just just they're relying in -- market to provide you with a capital unity.
I think it's a great idea.
It there will not be an absence of fees even with the ETFs and the funds end of the fees within an eight there within AM to 41 K plan -- will still be fees.
But you can get them down to -- very low level which will actually.
Then improve your prospects for retirement.
Bill Harris a personal capital CEO great to -- bill thanks for coming in.
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