Many employers offer 401K plans to their employees but some can come with hefty fees.
“I give a recommendation often that if you have a 401K plan where you work, you got to know what you’re being charged in terms of fees that you have to pay administratively, fees on the investments, to see if your deal is a good one or not,” says our Consumer Warrior Clark Howard. “Fees all in, you want to be less than half a percent of what you’re putting into your plan,” adds Howard.
If the fees are higher, Clark recommends putting in up to your employer’s match and then getting a Roth IRA at a low-cost company where you’re not paying the high fees.
If the fees are lower, Clark recommends putting in as much money as you can. “In an ultra-low cost plan, which will cost you about one-quarter of one percent per year, makes your money really work for you over the long haul.”
You can find more money-saving tips at Clark’s website, clark.com.