Andy Wang was quoted in a Forbes article by Chris Carosa, Senior Contributor.
Andy Wang Quoted in 401(k) Plan Fee Article in Forbes
Andy Wang was quoted in a Forbes article by Chris Carosa, Senior Contributor.
Why Do Employees Think They Don’t Pay Fees On Their 401(k) Plans?
The rise of ETFs and their biggest flaw
When you go grocery shopping and walk down the cereal aisle, are you overwhelmed by the number of varieties? There are probably too many choices. Today the same situation exists in the stock market. Investors have so many choices that you literally have tens of thousands of alternatives.
In the last 10 years, there has been a dramatic shift away from mutual funds and into exchange traded funds or ETFs. The amount of mutual funds peaked around the year 2000 and has remained pretty constant around 8000 funds. In the meantime, the number of publicly traded stocks has declined steadily and the amount of ETFs has been on the rise. Today the number of funds and ETFs is almost 3x the number of stocks available on US exchanges. If you add them all up, you have roughly 13,000 potential investment options between stocks, ETFs and mutual funds.
401(k) Tune Up: How to Lower Your Fund Fees
Runnymede has increasingly been serving as a fiduciary advisor to companies' 401(k) plans so I continue my series of articles on how to tune up your retirement plan. The intended audience is the company and its trustees that sponsor the plan but participants are also advocating for better plans. It is our hope to help employers optimize and better manage their retirement plan. In doing so, we seek to help employees achieve their goal of successfully preparing themselves for retirement.
This week, I want to help you to decipher mutual fund share classes. By far the largest component of 401(k) plan fees and expenses are those associated with managing plan investments. Moving to less expensive funds is an action item that can save money fast and have a huge impact over time.
How Much To Pay a Fee-Only Advisor? A Look At Average Annual Fees.
The subject of investment advisory fees can be confusing. While researching online, I observed that it is difficult to find average fees published anywhere so I hope that you find this blog post helpful.