» 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!

  • Survey reveals more than one-third of wealthy individuals lack estate plans
    The CNBC Millionaire Survey has found that 38 percent of 750 millionaires surveyed have not consulted a financial expert to establish an estate plan. The poll conducted by Spectrem Group for CNBC revealed estate planning was the most prevalent among individuals with investable assets amounting to at least $5 million, with 68 percent having worked […]
  • Nike launches groundbreaking shoes for people with special needs
    People with special needs face unique challenges that impact the quality of their everyday lives. For parents of special needs children, there is no greater hope than ensuring their child experiences life to the fullest despite having a disability that may inhibit their independence. Addressing one such issue, on July 13 Nike unveiled a line […]
  • Michael Gilfix in Trusts & Estates Magazine: Addressing Financial Elder Abuse
    Friends, We wanted to share an article that Michael Gilfix published in the prestigious Trusts & Estates magazine late last year. The article discusses issues related to elder abuse and diminished capacity as individuals age. In this article, Michael presents a new paradigm for thinking about this. He presents ways that families can keep an […]
  • Top reasons women need to consider estate planning
    Whether single, married, divorced or widowed, every woman should know how to maintain her financial independence and plan for issues she might face as she gets older, such as the need for long-term care. Women in the United States statistically have longer life expectancies than men, and therefore a higher likelihood of outliving their husbands. […]
  • U.S. Government focuses on elder justice at conference on aging
    President Barack Obama hosted the 2015 White House Conference on Aging on July 13. With adults aged 65 and above projected to comprise 20 percent of the United States population by 2030, the conference examined issues of importance to the future of older Americans, their families and caregivers. Elder justice was in the spotlight at […]

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



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

* indicates required