PLEASANT HILL, Calif., May 12 /PRNewswire/ -- Millions of Americans putting money away in a 401(k) plan with the hopes of someday enjoying retirement, may be surprised to learn that a fee of even one percent can reduce returns by as much as 15 percent over 30 years. 401(k) plans operated by a life insurance company or brokerage firm charge administrative fees that can significantly impact the amount available for retirement.
According to Steve Butler, president of Pension Dynamics Corporation, a retirement-plan consulting firm headquartered in the San Francisco Bay Area, "Information about hidden fees is becoming more available with the U.S. government this year requiring that government reporting for the 2009 year-end must disclose the entire amount vendors charged to participants in 2009. Next year this information will have to be shared with employees." He adds, "These new regulations will guarantee that 401(k) participants can monitor the financial condition and day-to-day operations of their retirement plans."
In addition to negotiating lower fees, Butler advises that it's also important to be aware of the following critical components of asset-building success in your 401(k) plan:
- Investing in pure no-load mutual funds to possibly generate improved results
- Redesigning your plan to allow for contributions as high as $54,500 per year for some employees
- The price you'll pay for only online help and no face-to-face individualized advice
ABOUT PENSION DYNAMICS
Pension Dynamics has been designing, installing and administering qualified retirement and flexible benefit plans in the San Francisco Bay Area since 1980. The company's president, Steve Butler is the author of two books on 401(k) plans, The Decision-maker's Guide to 401(k) Plans and a sequel, 401(k) Today.
Butler is the originator of the "Butler Index," an index of total costs of 410(k) plans, which has been featured in the New York Times, the Wall Street Journal and Money magazine. He has testified at cost-related hearings at the Department of Labor and before the United States House of Representatives Committee on Education and Labor.
A graduate of Harvard, Butler also attended the University of California at Berkeley Graduate School of Business Administration.
For more information, call Karen Barta at 925-956-0505 x 113 or go to http://www.pensiondynamics.com
SOURCE Pension Dynamics
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