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A Beacon Press And Dominick Sartorio Bulletin: Beware of Lost Retirement Savings to 401(k) Fees
“When was the last time you reviewed the fees you are paying for your retirement fund?” asked Dominick Sartorio
By: Beacon Press Group
Due to the growing need to control costs associated with these funds, coupled with the need to protect and better inform participants in these funds, all this is about to change. This past October, the U.S. Department of Labor has ruled that all employer-sponsored 401(k) plans will now have to disclose any and all fees on investments and transactions. These new disclosure regulations however, are not immediate, and will not go into effect until January 1, 2012.
Even though this information may not be reported until then, there are some things that participants can do now to better educate themselves and potentially improve their 401(k) savings plan. One of the most important things is to do your homework and get educated. Research and knowledge is your most valuable tool. Know what fees are and why they are charged. Know what is considered a normal range for that type of fee and what is considered fair. Equally important is to know your options. Lower cost options such as Individual Retirement Accounts or in rollover cases, lower cost 401(k) plans can also yield significant savings in fees. Finally, take action. Be proactive in knowing your plan and its fees, as well as options that may be available to you within your plan. Also know your options outside your existing plan and if it makes sense to you and for your situation, act upon your research and reap the benefits of a lower cost option for your retirement dollars.
As always, everything depends on your individual situation. "You should seek the advice of your financial advisor and benefits/plan administrator on how any changes in your retirement portfolio may affect you" stated Dominick Sartorio.
U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties.
The information contained herein was prepared from public documents for general informational purposes. Its contents should not be construed as professional advice, and readers should not act upon the information contained herein without consulting a professional. This information is presented without any representation or warranty as to its accuracy, completeness or timeliness. Transmission or receipt of this information does not create any relationship. Electronic mail or other communications cannot be guaranteed to be confidential and will not imply nor create any relationship.
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Dominick Sartorio is a veteran sales and operations executive who instigated significant growth at several companies before joining NewYork-based Legacy Management Consulting Group in 2008. Dominick Sartorio holds the position of Director of sales.