Your 401(k) May Be Making Someone Else a Millionaire

fees

yes it costs to save, no one is going to give it to you for free

in the above example there is before tax savings (will that be a benefit in the future? who knows) an employer match and positive earnings

also in the example (I agree with the others, 1.5% in fees does not come out what is indicated)what would it cost the same person to buy that kind of savings outside of the employer, on their own, with limited before tax savings, no match, etc.

again nothing is free, and 401k's were suppose to be a part of retirement savings, along with ss and personal savings

if someone finds a free one, let me know!

Leann Green of OH @ Apr 13, 2009 11:16:45 AM

Ken (below) has a point, I think,

but $500K is still high.

Now, boys and girls, imagine how much worse off we'd be if we "privatized" Social Security so that someone could "manage" that pot of money too.

Yes, I know somebody will come along and say that if social security was in private accounts that the government could not "borrow" and spend it elsewhere. But,

the market can certainly borrow and lose it elsewhere (to traders)---as you just saw happen to the 401(k) accounts.

Muser of NM @ Apr 11, 2009 11:27:35 AM

Fees

Baloney! At 1.5% the fees would not be more than $500k. Just think about it, if you earn 7.5% and pay 1.5% your earnings are 5 times higher than the fee. So how could the fee be 60% of your balance?

Ken of VA @ Apr 11, 2009 08:50:00 AM