Eleanor Laise, Kiplinger Retirement Report, on 401K Fees

The Dow -- down eight points you're not getting get a lot of action in stocks until after 2 o'clock and I -- I gotta tie it. The only thing I could see happening is to sell off I don't see it now. My perspective -- -- and he our guest is -- or pleas from -- your group retirement reports -- to put your magazine Elin are welcome to the show -- I. Appreciate your time they were a regular reports about four went case and it sounds like. Participants in 41 K plans are gonna start to receive more information regarding fees with so what's going on. That's right as a result of a long effort by the department of labored Q increases to those employers and employees understanding -- our case is. Says that starting this summer district that are going to get its -- exposure. Document outlining possible and you as -- is her -- but they probably aggregate -- What's the average because I was shocked when I read this in your report would tell our listeners with the average -- is. For retirement plans with less than ten million dollars which I have to believe is the majority retirement plans -- because most companies are small companies. That's right as planned. And are smaller plants and if you're -- about it -- aspect your average speed is about one point line. -- -- -- -- Now -- These smaller plants smaller employers has much less bargaining power and -- a big employers can't they're less likely to be paying much attention to the plant the there was a study. Yes Government Accountability Office that it was pretty hair raising interpretation -- count as two players really do not have a good crack about what kind of you -- in -- plan. -- -- interest think of that you an -- your reporter walked down to a halt to our human resource department we have less than two million dollars in our retirement plan as a company. In our fees annually or less than sixty basis points. Well that's a process that that that's that's definitely. Usual case first. What's the what's the average fee for a big company like let's say you're working for Raytheon -- IBM and. Your plan has over a hundred million dollars with -- average. The average speed there's about one point 08. That it's much lower that down. At Bristol pretty good chunk out that your return. No they are you quit the maybe UTE you know I've read. Sure sure their results of these high fees on retirement plans because I think a lot of people they participate in the in the company plan. Discuss this kind of like the only game in town but they don't they don't even know what they're being charged in fees so that he you know with the would tell us about the impact of these -- Right obviously they take it direct by Eric asked to return. I think. Where it really comes to at least for people is when they're trying down there accounts and and retire and considered somebody is retired a hundred out our ballot aged sixty. -- here that works fees. And -- -- out in 84% of her properly in the year. It -- AD she's got be able to -- down. About 3800 dollars she paid on. But she -- 2% is -- Charles good accountant about 3100 dollars. And it is complaint after spending in retirement policy accumulate at many years. You know I've had listeners call and and it talked to folks out there where they've asked me about. In service withdrawals that's a provision that allows somebody who's. Over the age of 59 and a half to take their money out of their employer plan where they might be getting overcharged as much to say 2%. In which your perspective on that idea active player do you think that's a good idea to do an in service withdrawal get your money out of the company plan. Well you might wanna take a really hard look at these measures and figure out what your pain vs. -- -- -- That charge less that point 1% annual. That he could be able to register -- based. -- do you allow these it service the child after age 59 and asked which I was truthfully it's 10% penalty which would otherwise. Apply Q early withdrawal. -- why does it seem in Ryan may be of a different perspective on but I look through I looked at a retirement playing yesterday for for somebody. And you know I looked at and I said she is seventeen funds in here and there's only maybe 45 that are any good the rest of armor mediocre seems like a lot of retirement plans. Are stuffed with mediocre. Or frankly lousy mutual funds. -- try to part of that is just how lack of attention a lot of interest on the part. Employers restructuring plan that -- and a tentative at ease because most -- the -- follow on to participant but anyway yeah and ultimately I think employers. But processors. If it's bad swearing beaches. Is where -- administrative expenses are built into the age of countries -- -- That you're looking at this country issues that body and really understanding what services are getting sent back cost but -- Plan sponsors to the like. Again and the cost to be passed on the part. Let's I guess that's par for the course all right well -- thank you very much for joining us appreciate your time. It's -- -- -- -- joining us from kiplinger's magazine and a shedding some light on the retirement plan this is I had no idea. That the average retirement plan he was close to 2% if your plan has less than ten million dollars on it. Chances are you're paying 2% management fee for that that's a lot of money talks.