Thursday, May 14, 2009

Fees in your 401K - There Ain't No Way to Tell

Lately I've been trying to figure out how much I pay in fees on my 401K.

Here's an excerpt from my fund fact sheet:
"It is estimated that the Fund’s expenses will be roughly 0.55%
per year, over an extended period. The Fund’s expenses may
increase or decrease in any given year and may be adjusted
to reflect the SSIP’s administrative expenses."

Basically, it says the fees are adjustable and you can't be sure about how much they were last year. I was sure there was a way to find an exact figure on how much I paid in fees last year, so I called the company that manages the 401K. The guy I spoke with was very helpful, but had no information. There are 8 different funds in my 401K, which means 8 different managers.

On the fact sheets for each fund, 3 funds had telephone numbers listed, 3 mailing addresses listed, and the remaining 2 funds listed absolutely no contact information.

I give up! It is literally impossible to figure out how much my 401K charges.

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