401k expenses
My question is in regard to "Total investment expenses: 0.120% $1.20 (per $1,000 invested). .120% seems expensive on its own. When my 401k starts to grow that "per $1,000 invested" expenses gets very expensive. Am I understanding the expenses correctly?
Terry Says
I think you're a bit confused in the numbers here. I hope your total investment expenses are only 0.12%. That definitely could be the case if your 40l(k) is at Fidelity or Vanguard, noted for their low costs. That 0.12 percent is considered "12 basis points" and you are lucky if this is all you are charged. That is a VERY small price to pay for the benefits of your retirement plan investments. If you are instead paying 1.20 percent, that's a lot! You should ask the boss to move the plan to another custodian, such as Fidelity or Vanguard.
