If you don't give much consideration to your 401k beyond picking the funds and watching the balance you're not alone. Most Americans surveyed by AARP aren't aware they are paying fees for their retirement funds at all.
According to Robert Hiltonsmith of Demos it's time to start looking at the fine print on your 401k plan. "On average people are going to lose about 30% of their retirement nest egg to fees," he explains in the attached video. By Demos' calculation that adds up to an average of $155,000 for median income two-earner families.
Now that he's got your attention, Hiltonsmith has four tips for minimizing those fees in order to maximize the benefits of your 401k retirement plan.
1) Utilize Your Employer Match
Most companies make matching contributions to 401k, at least up to a certain level. It's imperative that workers make sure they're getting largest possible participation from their employer. Over the long haul the benefit of maximizing company matching programs will more than offset the impact of hidden fees.Read More »from 4 Ways to Minimize 401k Fees to Maximize Your Savings