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

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WOW! How enlightening!
Taking this thought out a little further, just think how much I could save if I never went to the dentist. Take that money and invest it at 7.5%, or better yet, never have my car serviced, or not having kids, so I don't have any doctor's hospital bills.
There is no free lunch. These authors LOVE to work people up on fees on their investments. If we'd see their accounts, they are no doubt paying these fees. Shut Up already.

Alan Bond of CO 8:36AM April 14, 2009

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 11:16AM April 13, 2009

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 11:27AM April 11, 2009

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 8:50AM April 11, 2009

I don't see that I have any control over these fees. I can choose to not participate and fall short of my retirement goals. I can choose the fund with the lowest fees and lose some diversification. But I still need to be in the game. I feel fortunate to have reasonable choices in my 401(k) plan. I know that others don't.

kevin b of UT 5:36PM April 10, 2009