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Well 401 k's hopefully your 401K I don't -- is is growing with the bull market.
A bigger nest -- also mean bigger feats.
It's important to cut down on those hidden costs but how do you do that joining me now Chad park CEO of the online 401K Chad welcome back the show.
You know what's amazing to me nobody thinks they pay freeze on for a one case -- nobody like 7% of people think their 401K it's free they're misled house so.
It looks -- -- a free lunch right.
That's misled its misleading because these fees come out of the top of your investment return so when you're looking at your statement you're seeing a return.
But maybe 10% on a fund that's the net of fees so that fund might have returned 11% or 12%.
But the way it structures they don't have to tell you that so it's basically here's your return and we took our part thanks.
-- it's already god and we never told you about it.
Now it's fees for the mutual funds on -- -- but there's also fees for maintenance about 401K right I mean you know black people have their hand.
That's right there's at least five different hands in the -- I would say -- including my PS3 significantly.
I'm so you've got the new mutual fund investment expenses in their -- in addition to you have things called twelve B one fees which are in for marketing marketing costs you have some TA some transfer agency fees which very technical fees that the mutual funds -- companies like mine too.
Help record keep.
Then you have.
What in the insurance company plans you have and many fees which are called mortality administrative expenses.
What the heck is that how -- going going to leave the door and that is what I mean yeah you know.
Short story here you're paying a lot of -- here's my question though can I as an individual negotiate these down -- can I reduce them in any way now.
You as an individual cannot however -- might -- chat you can go to your HR department or your business owner and what we encourage you to do is to definitely you know pay attention to the fees.
Shop around do your homework look at the expenses that you are paying.
Bring this to the attention of the HR department -- business owner and stand up for yourself because this is your money these are your dollars.
And they are on to have -- your hiring these people to work for you.
So you want to make sure that you hire the right people the right price.
It's also possible that you can make Smart choices within your own plan where the fees are lower instead of picking.
At a very expensive actively managed find him so how much money do you think over my lifetime I'm missing out on because of these fees.
I think I've seen different studies that can call up to 150000 dollars while I'm over your lifetime and it's -- these -- out of tens of thousands of dollars over someone's lifetime so you -- it yourself to absolutely.
Make sure that you getting the right balance in on this is not a race to the bottom I want to stress that it's -- out cheap but it's about are you getting the best value for what you are paying.
-- so innocent pretty competitive marketplace so you need to look around.
So typical fees can -- half a percent up to 2% you're paying a lot of money for it be your own best advocate.
And tell your boss tell the people who run your four on K what -- -- you need Chad thanks for coming.
-- -- great to see you as always unbelievable numbers while.
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