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need to know
GoPro stock drops after key supplier’s outlook
Vera Bradley soars on results, upbeat outlook
Oil prices keep sliding; WTI down2%
Europe stocks waver | FTSE 100 regains ground

China stocks rebound from day’s sharp selloff
Intel overhauls chip business to revive PC sales
AT&T urges rejection of TRC Capital offer
Amgen finds data falsified in diabetes study


U.S. productivity rises at fastest pace since end of 2013
Productivity rises at fastest pace since end of 2013

Why gold now looks more risky than stocks
Why gold now looks more risky than stocks: Reeves

Still too many gold market bulls, says Hulbert
Morgan Stanley cuts S&P 500 price target
Tuesday’s 10 weakest S&P 500 stocks

Donald Trump, Hillary Clinton playing game of liar’s poker with the voters
Trump, Clinton play game of liar’s poker: Delamaide
Bush mounts ‘germophobe’ attack on Trump

Workers don’t do better in unions
Opinion: Workers don’t do better in unions
Raising wages to $15 would raise prices by 4%
LA: $15 wage will lift 600,000 out of poverty

Growing doubts among Viacom investors lead to 50% stock drop
Growing doubts among Viacom investors

China stock market to close for World War II anniversary
China tightens controls to fight capital outflows

Guide to managing money from your 20s to your 70s
Guide to managing money from your 20s to your 70s
Take your company pension, or buy an annuity?
Don’t overcomplicate 401(k) transfer to an IRA
Is this all the investing advice you’ll ever need?

Never use a market order when stocks are selling off

Uber drivers lawsuit  endangers much more than Uber
Uber will likely appeal class action decision
Uber driver suit can proceed as class-action

McDonald’s set to offer all-day breakfast

No. 1 restaurant for ‘breakfastarians’ is ...
Teacher with 111 tardies blames breakfast

Where every Fed member stands on raising rates

Rate-hike question is what Yellen didn’t want
Boston Fed president: Sept. doubt remains

What to expect at September Apple event
What to expect from the Apple event on Sept. 9
New on the shelves of your Apple Store: drones
Apple talks to Hollywood for exclusive content
Lost Apple deal leads to 40% job cut at GT

Unlucky lottery winner gets IOU from Illinois

The 11 richest people on the planet under 35
The 11 richest people on the planet under 35

Babe Ruth’s New York apartment is for sale

These are the cars that get the most Instagram attention
Best time to buy a new car may be just ahead
U.S. car sales are stronger than expected

10 cities in U.S. with the very worst traffic problems
Lowest Labor Day gas prices in 11 years: AAA


/conga/frontpage.html 353933

Markets »

24.51MDow Volume:
Avg Vol: 111.86M
Unchanged
262
Decliners
2160
Advancers
3814
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
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  • 1 Month
  • 3 Months
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Dow
/quotes/zigman/627449/realtime 16,176 +118 0.73%
Nasdaq
/quotes/zigman/12633936/realtime 4,671 +35 0.76%
S&P 500
/quotes/zigman/3870025/realtime 1,925 +11 0.56%
GlobalDow
/quotes/zigman/629063/realtime 2,300 +4 0.20%
Gold
/quotes/zigman/662444/delayed 1,137 -3 0.25%
Oil
/quotes/zigman/2331095/delayed 45.11 -0.30 0.66%
FTSE 100
/quotes/zigman/3173262/delayed 6,128 +69 1.14%
DAX
/quotes/zigman/2380246/delayed 10,091 +76 0.76%
CAC 40
/quotes/zigman/3173214/delayed 4,590 +49 1.07%
FTSE MIB
/quotes/zigman/1482176/delayed 21,750 +299 1.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,015 +22 0.22%
Stoxx 600
/quotes/zigman/2380150/delayed 356 +3 0.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,704 -14 0.50%
Nikkei 225
/quotes/zigman/5986735/delayed 18,095 -70 0.39%
Hang Seng
/quotes/zigman/2622475/delayed 20,935 -250 1.18%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,454 -243 0.95%
Singapore
/quotes/zigman/1709939/delayed 2,878 -5 0.16%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.71%
Yen
/quotes/zigman/16008150/realtime/sampled 120.05 +0.68 0.57%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 0.00 0.05%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 +0.00 0.03%
DXY Index
/quotes/zigman/1652083/delayed 95.77 +0.40 0.41%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.54 +0.37 0.42%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.03 1.40%
German 10y
/quotes/zigman/15866409/realtime 0.81 +0.01 0.90%
Italy 10yr
/quotes/zigman/15866497/realtime 2.00 +0.00 0.23%
Spain 10yr
/quotes/zigman/15866444/realtime 2.15 +0.01 0.63%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.84 +0.01 0.78%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.03 8.56%
Crude Oil
/quotes/zigman/2331095/delayed 45 0 0.66%
Gold
/quotes/zigman/662444/delayed 1,137 -3 0.25%
Corn
/quotes/zigman/7599553/delayed 368 -1 0.27%
DJIA F
/quotes/zigman/38649152/delayed 16,188 +101 0.63%
S&P F
/quotes/zigman/30356461/delayed 1,926 +10 0.53%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.27%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 88.12 0.89 1.01%
AAPL /quotes/zigman/68270/composite 109.84 2.12 1.97%
GOOG /quotes/zigman/30194416/composite 603.47 5.68 0.95%
BAC /quotes/zigman/190927/composite 15.67 0.14 0.90%
C /quotes/zigman/5065548/composite 51.28 0.34 0.66%
F /quotes/zigman/264304/composite 13.72 -0.0050 -0.04%
T /quotes/zigman/398198/composite 32.65 0.33 1.03%
BP /quotes/zigman/247026/composite 31.91 -0.23 -0.72%
GE /quotes/zigman/227468/composite 23.97 0.09 0.36%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
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 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
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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Comments (4 of 4)

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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

New York Markets Close in:

need to know
GoPro stock drops after key supplier’s outlook
Vera Bradley soars on results, upbeat outlook
Oil prices keep sliding; WTI down2%
Europe stocks waver | FTSE 100 regains ground

China stocks rebound from day’s sharp selloff
Intel overhauls chip business to revive PC sales
AT&T urges rejection of TRC Capital offer
Amgen finds data falsified in diabetes study


U.S. productivity rises at fastest pace since end of 2013
Productivity rises at fastest pace since end of 2013

Why gold now looks more risky than stocks
Why gold now looks more risky than stocks: Reeves

Still too many gold market bulls, says Hulbert
Morgan Stanley cuts S&P 500 price target
Tuesday’s 10 weakest S&P 500 stocks

Donald Trump, Hillary Clinton playing game of liar’s poker with the voters
Trump, Clinton play game of liar’s poker: Delamaide
Bush mounts ‘germophobe’ attack on Trump

Workers don’t do better in unions
Opinion: Workers don’t do better in unions
Raising wages to $15 would raise prices by 4%
LA: $15 wage will lift 600,000 out of poverty

Growing doubts among Viacom investors lead to 50% stock drop
Growing doubts among Viacom investors

China stock market to close for World War II anniversary
China tightens controls to fight capital outflows

Guide to managing money from your 20s to your 70s
Guide to managing money from your 20s to your 70s
Take your company pension, or buy an annuity?
Don’t overcomplicate 401(k) transfer to an IRA
Is this all the investing advice you’ll ever need?

Never use a market order when stocks are selling off

Uber drivers lawsuit  endangers much more than Uber
Uber will likely appeal class action decision
Uber driver suit can proceed as class-action

McDonald’s set to offer all-day breakfast

No. 1 restaurant for ‘breakfastarians’ is ...
Teacher with 111 tardies blames breakfast

Where every Fed member stands on raising rates

Rate-hike question is what Yellen didn’t want
Boston Fed president: Sept. doubt remains

What to expect at September Apple event
What to expect from the Apple event on Sept. 9
New on the shelves of your Apple Store: drones
Apple talks to Hollywood for exclusive content
Lost Apple deal leads to 40% job cut at GT

Unlucky lottery winner gets IOU from Illinois

The 11 richest people on the planet under 35
The 11 richest people on the planet under 35

Babe Ruth’s New York apartment is for sale

These are the cars that get the most Instagram attention
Best time to buy a new car may be just ahead
U.S. car sales are stronger than expected

10 cities in U.S. with the very worst traffic problems
Lowest Labor Day gas prices in 11 years: AAA


/conga/frontpage.html 353933

Markets »

24.51MDow Volume:
Avg Vol: 111.86M
Unchanged
262
Decliners
2160
Advancers
3814
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 16,177 +119 0.74%
Nasdaq
/quotes/zigman/12633936/realtime 4,672 +36 0.77%
S&P 500
/quotes/zigman/3870025/realtime 1,925 +11 0.57%
GlobalDow
/quotes/zigman/629063/realtime 2,300 +4 0.20%
Gold
/quotes/zigman/662444/delayed 1,137 -3 0.25%
Oil
/quotes/zigman/2331095/delayed 45.12 -0.30 0.66%
FTSE 100
/quotes/zigman/3173262/delayed 6,128 +69 1.14%
DAX
/quotes/zigman/2380246/delayed 10,091 +76 0.76%
CAC 40
/quotes/zigman/3173214/delayed 4,590 +49 1.07%
FTSE MIB
/quotes/zigman/1482176/delayed 21,750 +299 1.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,016 +23 0.23%
Stoxx 600
/quotes/zigman/2380150/delayed 356 +3 0.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,704 -14 0.50%
Nikkei 225
/quotes/zigman/5986735/delayed 18,095 -70 0.39%
Hang Seng
/quotes/zigman/2622475/delayed 20,935 -250 1.18%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,454 -243 0.95%
Singapore
/quotes/zigman/1709939/delayed 2,878 -5 0.16%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.71%
Yen
/quotes/zigman/16008150/realtime/sampled 120.05 +0.68 0.57%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 0.00 0.05%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 +0.00 0.03%
DXY Index
/quotes/zigman/1652083/delayed 95.77 +0.40 0.41%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.54 +0.37 0.42%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.03 1.40%
German 10y
/quotes/zigman/15866409/realtime 0.81 +0.01 0.90%
Italy 10yr
/quotes/zigman/15866497/realtime 2.00 +0.00 0.23%
Spain 10yr
/quotes/zigman/15866444/realtime 2.15 +0.01 0.63%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.84 +0.01 0.78%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.03 8.56%
Crude Oil
/quotes/zigman/2331095/delayed 45 0 0.66%
Gold
/quotes/zigman/662444/delayed 1,137 -3 0.25%
Corn
/quotes/zigman/7599553/delayed 368 -1 0.27%
DJIA F
/quotes/zigman/38649152/delayed 16,188 +101 0.63%
S&P F
/quotes/zigman/30356461/delayed 1,926 +10 0.51%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.31%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 88.56 1.33 1.52%
AAPL /quotes/zigman/68270/composite 109.78 2.06 1.91%
GOOG /quotes/zigman/30194416/composite 603.52 5.73 0.96%
BAC /quotes/zigman/190927/composite 15.66 0.13 0.86%
C /quotes/zigman/5065548/composite 51.24 0.30 0.58%
F /quotes/zigman/264304/composite 13.71 -0.01 -0.07%
T /quotes/zigman/398198/composite 32.63 0.31 0.96%
BP /quotes/zigman/247026/composite 31.90 -0.24 -0.75%
GE /quotes/zigman/227468/composite 23.95 0.07 0.29%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
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 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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  • /quotes/zigman/465359/composite OPK+1.30%
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