Tuesday, October 8, 2013
Forbes recently posted some tips and information that will make sure your 401K savings benefit you.
- Tax code complexity can create ancillary costs.
- Administrative costs may end up costing the smaller retirement plans more than the larger plans.
- High costs compound just like returns.
- Take advantage of disclosure standards, they can help reduce costs.
- Investors must use the disclosure.
- People should set up automatic deductions to save for retirement.
- Target date funds do not guarantee income at retirement.
- Investors can change policy by voting against excessive fees.
- Do the math and check to see if the cost of the fees is worth the savings.
- Be prepared to decline a tax break.
See Janet Novack, 10 Tough Lessons For College and Retirement Savers --And Tax Reform, Forbes, Sep. 10, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.