Friday, April 11, 2014

How Labeling Retirement Plans Like We Label Cigarettes Could Save Workers A Fortune

www.thinkprogress.org/economy/2014/04/11/3425842/retirement-account-labels/
"The individual retirement accounts and 401(k)s that have become the primary vehicle for retirement savings come with fees that are four to five times higher, on average, than those associated with traditional mutual funds. Over the course of a lifetime, that difference amounts to between $71,000 and $94,000 in additional fees for the median American worker who starts saving for retirement at age 25. And because higher fees do not correlate with better market performance, a worker in a high-fee plan will have to work four years longer to accumulate the same nest egg as one who saves through low-fee systems."