Report: Average Family Loses 30% of 401k(s) to Wall Street Fees
If you’re saving using a 401k, then chances are you’re losing a large chunk of your savings to Wall St. fees, according to a recent study. 
From MSNBC:
The Demos study, released last month, is just the latest in a long string of research showing 401(k) plans are a better deal for Wall Street than for you. Many show that people lose about one-third of their retirement money to fees that they don’t even know they’re paying. The actual lifetime impact of fees is a matter of widespread debate, but it shouldn’t be. In one dramatic example, John Bogle, the inventor of index funds, demonstrated how fees can consume 80 percent of an investor’s money through something he’d dubbed “the tyranny of compounding fees.”
This questions the idea pushed in the 1990′s that 401k(s) were the best route to wealth in old age since the study reveals that the funds are often better investments for Wall Street firms than investors.
There may be help on the way though in the form of regulations passed back in 2007 which start this year. But keep in mind that Wall St. is usually one step ahead of the government, so it may be best to at least consider other vehicles for funding your retirement.
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