» 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!

  • Gilfix & La Poll attorneys speak at NAELA Summi
    Attorneys Michael Gilfix and Mark R. Gilfix of Gilfix & La Poll Associates appeared as featured speakers at two sessions during the 2016 National Academy of Elder Law Attorneys Summit in Newport Beach, California, on January 28 and 29. Michael Gilfix is one of NAELA’s original founding members. They addressed audiences of more than 100 […]
  • How an IRA Trust can help avert disaster
    By Attorney Elijah Keyes A father designated his son and daughter as the beneficiaries of his large retirement account. The daughter’s husband was physically abusive and the couple had been considering divorce. The father was adamant that his son-in-law receive nothing from his estate. After a very healthy life, the daughter was diagnosed with stage […]
  • Home Care and Financial Abuse
    Over 8 million older Americans receive care at home or in facilities by strangers. Some caregivers are trained and managed by home health care agencies. Others are hired privately in an effort to save money. Privately hired caregivers may charge as little as $12 or $14 per hour. Caregivers hired through an agency may be […]
  • Avoiding fights over inheritance with revocable living trusts
    When parents pass away without clear instructions in place about how to divide their assets upon their death, they may leave family members battling over inheritance for years. Such fights can cause rifts that are sometimes impossible to heal. A will contains detailed instructions on how a person wants their assets, such as family heirlooms […]
  • Women bear the brunt of costs for Alzheimer’s care, says study
    A study by Emory University researchers has found that women shoulder six times the cost of Alzheimer’s disease care than men. The greater burden in expenses is mainly due to the informal care that women provide to family members who have the degenerative brain disorder. Researchers examined three factors to calculate Alzheimer’s care costs using […]

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



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

* indicates required