Also in this playlist...
This transcript is automatically generated
Well if you want to add six figures here 401K listen up.
Charles -- all index fund retirement plan it's designed to lower investment costs and simplify investing.
It's now a year old so we're checking back into see their results joining me now Steve Anderson head of Schwab's retirement plan.
Thanks so much for coming on tonight -- glad to have you here.
-- -- like how we have a mess this all up because so many people are disappointed in their retirement savings air 401K.
I just one -- for participants is on track to meet savings goals.
Say they don't have enough money to retire you know -- -- -- there's a lot of disappointment out there right now.
There's a lot of disappointment yet there's there's optimist and the system still works.
And I think if you focus on a couple key variables number one you have to participate.
But -- you gotta be mindful of all the expenses involved many of the expenses are in the asset management fees trying to drive down those fees can make a big difference.
Well and let's get right to -- because this all index 401K plan goes right to that.
If you're using all indexed bonds you can really -- drive down your costs big time explain that to us.
With index -- had the lowest possible cost in the marketplace for the underlying mutual funds we -- all index mutual funds.
And we've been able to drive down the cost to about fifteen dollars per 101000 dollars outlasted.
Plans typically with active manage funds.
Mutual funds -- -- -- probably about 75 or eighty dollars per 101000 invested so a significant drop in the cost.
And that puts money right in the pockets of employees.
To the tune of under 151000 dollars you're -- so that's right here investing in index funds you can save enough money to have an additional.
Dollars every -- This is how important fees -- I don't you know I don't think -- enough see people don't realize.
You know most of us the funds we pick so why this little bit of this it's a little bit of that.
But if you can significantly reduce your fees over time you have a such a much better chance of having -- Turns you sure can and it's that it's lowering its fees that they're also taking advantage of advice and that's where we've seen with our new offering in one year.
Upwards to about 90%.
Of the employees are taking advantage of professional advice so truly the combination.
Of that lower fee.
I -- on the asset management.
But -- up with excellent professional management that's really get the most mileage out of the 41 K plan so tell us about -- at the advice component of your program.
Share if you think about that the level of information that's available from the employer.
That the record keepers received it's very rich and data such as each.
Savings rate even the account balance we can use that data to bill that portfolios.
That can that can create a glide path and a risk profile appropriate for that individual.
Much more appropriate -- maybe just looking at age which -- common in a target date fund.
Well that makes a lot of sense you know Steve I'm reminded of bell what Paul Samuelson once said the very famous economist he said.
Investing should be as exciting as watching paint dry.
If you want excitement he -- go to Las Vegas and I think you underline that point very well tonight's C thanks for coming up that we appreciate your time thank you Jerry.
Filter by section