» Gilfix & LaPoll Recommends Examining 401(k) Fees

Gilfix & LaPoll Recommends Examining 401(k) Fees

Palo Alto, CA (Law Firm Newswire) December 30, 2013 – Most workers who participate in 401(k) plans are trying to save enough for a comfortable retirement and perhaps an inheritance for their children and grandchildren.

A prominent estate planning attorney says that while 401(k)s are a good way to add to one’s retirement savings, it is important to take a look at the fees a plan charges, as these fees can erode one’s savings.

“Employers are now required to provide workers with more information about the fees connected with administering 401(k)s and the different investment options they provide,” said Michael Gilfix, a Palo Alto estate planning attorney.

In 2012, the Labor Department began requiring employers to provide additional information about fees. The administration expenses of a 401(k) plan can be significant. One estimate found that fees on some plans can erode up to 30 percent of a person’s retirement savings. Industry experts expected workers to pressure their employers to switch to plan administrators that charge lower fees, but the number of these requests has not matched predictions. The nonprofit Employee Benefit Research Institute found that only 53 percent of participants in 401(k) plans noticed the new disclosures, and most of those did not do anything about it. That may be a mistake, says Gilfix.

“One easy action you can take is to switch out of the types of investment options that carry higher fees,” said Gilfix. “It’s important to pay attention to your 401(k) plan to make sure you are getting the best possible return on your investment, and that includes avoiding fees whenever you can.”

It may be that many people do not take action because they do not have enough information to judge whether fees are too high. One solution is a service such as Brightscope, which rates 401(k) plans and includes a database of information about fees. CNN Money also has a free tool available that allows workers for large companies to compare 401(k) fees. Tools such as 401kfee.com allow one to calculate the impact of fees on one’s retirement savings.

“The important thing is to take charge of your own retirement plan and estate plan,” said Gilfix.

Facebook: Like Us!

  • Computer-based messaging may help individuals with autism develop better relationships
    The MIT publication Technology Review recently called attention to a new study that takes a novel approach to computer use for people with autism. Traditionally, people with autism are thought to be loners who do not desire social connection. Many of the computer-based interventions for people with autism have sought to enhance communication skills that […]
  • Planning for the future: ideas and technologies for aging in place
    By Mark Gilfix As more Baby Boomers reach their senior years, more policymakers and elder health advocates are turning their attention to the issues behind aging in place. Overwhelmingly, research shows that older Americans would prefer to age at home or in other noninstitutional settings. But for aging in place to really work, a number […]
  • Thank you to all attendees of our very successful seminars
    Gilfix and La Poll associates would like to thank the attendees of our very successful seminars about estate planning and long term care in Palo Alto on October 14th. Our audiences were large and highly engaged, and they asked great questions. We are hopeful and confident that they got highly valuable information that will serve […]
  • For a second or third marriage, make estate planning part of wedding planning
    When daily discussions revolve around flowers, music and cake, it may seem unromantic to bring up estate planning. But if you consider renewed estate planning as a way for you and your future spouse to bring old estate plans into harmony with your new hopes for your future family, it can seem a lot more […]
  • Two new studies of Alzheimer’s disease deliver promising results
    Two new studies show progress toward producing a cure for Alzheimer’s disease and discovering its causes. A new study from the Yale School of Medicine has announced a major step forward in the push to find a drug to treat Alzheimer’s disease. Yale researchers have created a drug that reverses cognitive defects caused by Alzheimer’s […]

See other news sources publishing this article. BETA | Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required