Team Tony cultivates, curates and shares Tony Robbins’ stories and core principles, to help others achieve an extraordinary life.
Wealth & Lifestyle
Tony Robbins on excessive and hidden fees in 401(k) plans:
Here are some startling statistics:
What your 401(k) provider will never tell you
How to spot the hidden fees in your 401(k) plan:
– The impact of 401(k) fees and steps to reduce them
– Why the mutual funds in your plan fund choices you have aren’t really choices at all
– The 401(k) is a great piece of tax code that, if used properly, can help you on your road to financial freedom.
– 67% of 401(k) participants believe they pay no fees whatsoever. That’s just not the case!
– Between 1993 and 2013, the average mutual fund investor received 2.54% annually, while the S&P 500 achieved 9.28%.
– You could be giving up 60% of your future potential nest egg to fees.
And, business owners beware…
Business owners, also known as plan sponsors, have a legal “fiduciary” duty to provide a competitive plan that is annually “benchmarked” to determine how competitive the plan really is and if the fees are both fair and reasonable.
According to CFO Daily News, “Seventy-five percent of the 401(k)s audited by the DOL last year resulted in plan sponsors being fined, penalized or forced to make reimbursements for plan errors. And those fines and penalties weren’t cheap. In fact, the average fine last year was $600,000 per plan.”
Team Tony
