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Time Warner beats estimates, raises dividend
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BP CEO: Oil to start rebalancing in late 2016
Deutsche Bank rallies on debt buyback report
European stocks snap 7-day losing streak
Oil hovers above $28 | Dollar falls vs. yen
SolarCity shares plunge on soft forecast
What to expect from Whole Foods earnings

REIT bonus targets at heart of Brixmor scandal

Burberry sues, says J.C. Penney copied its designs
Hermès sales up 15% on euro, Asian demand

Feds have removed a roadblock to driverless cars

The Twitter signal that’s giving investors hope
Tech money makers can’t make up for losers
Facebook, Amazon are the keys to this market

Recipe for less boring Oscar acceptance speeches
Is James Bond’s Pinewood Studios for sale?

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Tricky tax issues you should know about this year

Supreme Court halts Obama’s emissions plan
White House forecasts best growth in years
Obama proposes $4.1 trillion federal budget

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Why you should consider retiring abroad
The best places to retire abroad — with friends
Finding the best places to retire abroad
Expat retirees: how life has turned out

The sad truth of why retirement
is a myth


Is it wise to hold onto cash reserves?

Strategists argue stocks need a true purge

IRS says identity thieves breached its systems
How to know if your tax preparer is a crook
Tax software firm warns of data breach
White House's lesson about online security

The 6 Most Shorted NYSE Stocks: Short Sellers Pile on Alcoa, Freeport-McMoRan Again
Short sellers pile on Alcoa, Freeport-McMoRan
24/7 Wall St.: Short sellers retreat from Nasdaq

Tesla earnings: Model 3 spending, Model X sales in focus
Tesla earnings: Model 3 spending, Model X

Cheap oil may make OPEC dominant again
Existential threat to Russians and Saudis: Lynn

Will oil get so cheap, it won’t pay to extract it?


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45.50MDow Volume:
Avg Vol: 130.29M
Unchanged
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Decliners
2155
Advancers
3939
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
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Dow
/quotes/zigman/627449/realtime 16,007 -8 0.05%
Nasdaq
/quotes/zigman/12633936/realtime 4,314 +45 1.05%
S&P 500
/quotes/zigman/3870025/realtime 1,861 +9 0.46%
GlobalDow
/quotes/zigman/629063/realtime 2,088 +4 0.18%
Gold
/quotes/zigman/33772884/delayed 1,193 -5 0.45%
Oil
/quotes/zigman/2260836/delayed 27.60 -0.34 1.22%
FTSE 100
/quotes/zigman/3173262/delayed 5,669 +36 0.65%
DAX
/quotes/zigman/2380246/delayed 9,027 +148 1.66%
CAC 40
/quotes/zigman/3173214/delayed 4,064 +66 1.66%
FTSE MIB
/quotes/zigman/1482176/delayed 16,675 +762 4.79%
IBEX 35
/quotes/zigman/2759620/delayed 8,145 +217 2.74%
Stoxx 600
/quotes/zigman/2380150/delayed 315 +6 1.90%
Asia Dow
/quotes/zigman/6959860/realtime 2,459 -12 0.48%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,759 -262 1.09%
Singapore
/quotes/zigman/1709939/delayed 2,582 -41 1.57%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.55%
Yen
/quotes/zigman/16008150/realtime/sampled 114.06 -1.06 0.92%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.06%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.10%
DXY Index
/quotes/zigman/1652083/delayed 96.35 +0.29 0.30%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.27 -0.01 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.73 +0.00 0.05%
German 10y
/quotes/zigman/15866409/realtime 0.25 +0.01 3.69%
Italy 10yr
/quotes/zigman/15866497/realtime 1.64 -0.04 2.37%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 -0.06 3.62%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 +0.00 0.20%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 165.64%
Crude Oil
/quotes/zigman/2260836/delayed 28 0 1.22%
Gold
/quotes/zigman/33772884/delayed 1,193 -5 0.45%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.28%
DJIA F
/quotes/zigman/48241424/delayed 15,988 +29 0.18%
S&P F
/quotes/zigman/43106711/delayed 1,859 +11 0.60%
Silver
/quotes/zigman/32655632/delayed 15 0 1.42%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.75 2.21 2.22%
AAPL /quotes/zigman/68270/composite 95.11 0.12 0.13%
GOOG /quotes/zigman/59527964/composite 688.84 10.73 1.58%
BAC /quotes/zigman/190927/composite 12.15 -0.05 -0.41%
C /quotes/zigman/5065548/composite 37.66 0.15 0.40%
F /quotes/zigman/264304/composite 11.40 0.05 0.40%
T /quotes/zigman/398198/composite 36.35 -0.30 -0.81%
BP /quotes/zigman/247026/composite 28.12 -0.24 -0.83%
GE /quotes/zigman/227468/composite 28.49 0.21 0.72%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.26% 15.26% 15.27%
Reward 15.28% 15.28% 15.14%
Instant Approval 18.21% 18.21% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

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Will New Regs Solve 401(k) Fee Mystery?

Do you know how much you’re paying in 401(k) fees?

Kevin George / Shutterstock.com

Surveys and studies suggest many Americans have no clue. But a report released last week estimates the average American household pays nearly $155,000 in 401(k) fees over the course of a lifetime — or roughly 30% of their 401(k) balance. That’s enough to buy a house, says Demos, the non-partisan public policy group behind the report. “Every little bit more in fees takes a really big chunk out of your end balance,” says Robert Hiltonsmith, a policy analyst with Demos and the study’s author.

The report sparked criticism from industry players, who say the figure is overstated, and that most retirement savers have access to lower-cost funds. Indeed, other studies estimate the average fees to be much lower. A November 2011 report from Deloitte Consulting LLP done for the Investment Company Institute, a fund-industry trade group, found that the typical 401(k) participant paid $248 in record keeping, administrative and investment fees a year. That number decreased to $122 a year for people in the lowest-cost plans and hit $558 a year for those in the highest-cost plans. “The Demos report grossly mischaracterizes the 401(k) system,” Brian Reid, chief economist for ICI, a fund industry trade group, said in a statement. ”The report incorrectly uses ICI data in making calculations that do not recognize our research findings that mutual fund costs in the 401(k) market tend to be lower than fees for the average fund.”

The problem with fees isn’t the amounts, industry pros say, but that most people are unaware how they work. An AARP survey from last year found that 62% of 401(k) account holders didn’t know how much they were paying in fees, and 71% didn’t know they were paying any fees at all. The confusion exists, the report says, because all fees aren’t clearly laid out on the summaries investors check regularly. Many investors also don’t read the prospectuses disclosing the fees and it is difficult to accurately add up trading fees and fees shared between fund firms and plan providers, says Hiltonsmith. “Most people think they’re not paying any fees,” says Mike Alfred, co-founder of BrightScope, a financial research firm.

Advocates hope new rules from the Department of Labor, slated for July 1, will give savers the real number.  The rules require financial institutions to disclose fees and administrative costs to employers. Employers must then pass that information along to participants by Aug. 30 and on an annual basis after that. The goal of the regulation, experts say, is to encourage employers to compare the costs of competing plans and to give investors a clear idea of how much they’re paying for record-keeping, transactions and other services.

For its part, Demos says its estimate that fees eat up 30% of balances would decrease for savers who have access to larger, lower-cost plans than the one it used in its model. But Hiltonsmith argues that not all retirement savers have access to such plans. The group assumed a couple worked from ages 25 to 65, saving 5.3% of their salaries at the start of their careers and gradually increasing that to 9.2%. That money was invested in a hypothetical stock-index fund that charged 0.95% and the other half was in a bond-index fund with an expense ratio of 0.72.  Hiltonsmith also added trading fees equal to the expense ratio for the stock fund and of 0.5% for the bond fund.

Even before the new disclosure rules take effect, retirement savers can use various tools to estimate how much they’re spending on fees. AARP has a 401(k) fee calculator that tells people if the fees on their funds are above average and estimates how fees might be reducing their retirement income. BrightScope also offers a tool to help people estimate how much they might save by moving to another plan.

Note: This post has been updated to include a comment from the Investment Company Institute.

Comments

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    • By WebOsPublisher

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    • In the second paragraph of the article you state clients can lose 30%of their ACCOUNTS to fees, then in paragraph six you say 30% of RETURNS. Big difference. Words mean something. Be careful what you write. It doesn’t go away.

    • You can also visit 401kfee.com for a calculator that will give you a personalized analysis of just how much high 401k fees may be costing you.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Close in:

need to know
Time Warner beats estimates, raises dividend
Carlyle Group swings to loss, plans buyback
BP CEO: Oil to start rebalancing in late 2016
Deutsche Bank rallies on debt buyback report
European stocks snap 7-day losing streak
Oil hovers above $28 | Dollar falls vs. yen
SolarCity shares plunge on soft forecast
What to expect from Whole Foods earnings

REIT bonus targets at heart of Brixmor scandal

Burberry sues, says J.C. Penney copied its designs
Hermès sales up 15% on euro, Asian demand

Feds have removed a roadblock to driverless cars

The Twitter signal that’s giving investors hope
Tech money makers can’t make up for losers
Facebook, Amazon are the keys to this market

Recipe for less boring Oscar acceptance speeches
Is James Bond’s Pinewood Studios for sale?

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Tricky tax issues you should know about this year

Supreme Court halts Obama’s emissions plan
White House forecasts best growth in years
Obama proposes $4.1 trillion federal budget

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Why you should consider retiring abroad
The best places to retire abroad — with friends
Finding the best places to retire abroad
Expat retirees: how life has turned out

The sad truth of why retirement
is a myth


Is it wise to hold onto cash reserves?

Strategists argue stocks need a true purge

IRS says identity thieves breached its systems
How to know if your tax preparer is a crook
Tax software firm warns of data breach
White House's lesson about online security

The 6 Most Shorted NYSE Stocks: Short Sellers Pile on Alcoa, Freeport-McMoRan Again
Short sellers pile on Alcoa, Freeport-McMoRan
24/7 Wall St.: Short sellers retreat from Nasdaq

Tesla earnings: Model 3 spending, Model X sales in focus
Tesla earnings: Model 3 spending, Model X

Cheap oil may make OPEC dominant again
Existential threat to Russians and Saudis: Lynn

Will oil get so cheap, it won’t pay to extract it?


/conga/frontpage.html 367585

Markets »

45.48MDow Volume:
Avg Vol: 130.29M
Unchanged
170
Decliners
2159
Advancers
3938
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,008 -7 0.04%
Nasdaq
/quotes/zigman/12633936/realtime 4,314 +45 1.06%
S&P 500
/quotes/zigman/3870025/realtime 1,861 +9 0.47%
GlobalDow
/quotes/zigman/629063/realtime 2,088 +4 0.18%
Gold
/quotes/zigman/33772884/delayed 1,193 -6 0.46%
Oil
/quotes/zigman/2260836/delayed 27.61 -0.33 1.18%
FTSE 100
/quotes/zigman/3173262/delayed 5,669 +36 0.65%
DAX
/quotes/zigman/2380246/delayed 9,027 +148 1.66%
CAC 40
/quotes/zigman/3173214/delayed 4,066 +68 1.71%
FTSE MIB
/quotes/zigman/1482176/delayed 16,675 +762 4.79%
IBEX 35
/quotes/zigman/2759620/delayed 8,145 +217 2.74%
Stoxx 600
/quotes/zigman/2380150/delayed 315 +6 1.90%
Asia Dow
/quotes/zigman/6959860/realtime 2,459 -12 0.48%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,759 -262 1.09%
Singapore
/quotes/zigman/1709939/delayed 2,582 -41 1.57%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.56%
Yen
/quotes/zigman/16008150/realtime/sampled 114.04 -1.08 0.94%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.04%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.11%
DXY Index
/quotes/zigman/1652083/delayed 96.35 +0.29 0.30%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.27 -0.01 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.73 0.00 0.05%
German 10y
/quotes/zigman/15866409/realtime 0.25 +0.01 3.69%
Italy 10yr
/quotes/zigman/15866497/realtime 1.64 -0.04 2.37%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 -0.06 3.62%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 +0.00 0.20%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 165.64%
Crude Oil
/quotes/zigman/2260836/delayed 28 0 1.18%
Gold
/quotes/zigman/33772884/delayed 1,193 -6 0.46%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.28%
DJIA F
/quotes/zigman/48241424/delayed 15,990 +31 0.19%
S&P F
/quotes/zigman/43106711/delayed 1,860 +11 0.61%
Silver
/quotes/zigman/32655632/delayed 15 0 1.42%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.71 2.17 2.18%
AAPL /quotes/zigman/68270/composite 95.07 0.08 0.08%
GOOG /quotes/zigman/59527964/composite 688.96 10.85 1.60%
BAC /quotes/zigman/190927/composite 12.16 -0.04 -0.35%
C /quotes/zigman/5065548/composite 37.67 0.16 0.41%
F /quotes/zigman/264304/composite 11.40 0.05 0.40%
T /quotes/zigman/398198/composite 36.36 -0.29 -0.78%
BP /quotes/zigman/247026/composite 28.13 -0.22 -0.78%
GE /quotes/zigman/227468/composite 28.49 0.21 0.74%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.26% 15.26% 15.27%
Reward 15.28% 15.28% 15.14%
Instant Approval 18.21% 18.21% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

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