Employer-provided 401(k) plans are a very popular retirement savings vehicle.  In fact, according to a 2015 study, 85% of employees who have access to a 401(k) plan participate in it.

While 401(k) plans typically offer a variety of investment options, one key factor is often overlooked by both employers and employees in deciding the funds to offer and invest in: plan fees.

Best Predictor of Fund Performance is…

Plan fees can run from well under 1% to over 2% of assets under management. While 1% or 2% might not seem like a lot, the fee will heavily impact the growth of savings toward retirement over time. According to Morningstar and Consumer Reports, the best predictor of fund performance is not the experience of the fund manager or the fund’s past performance. Instead, the best predictor of performance is…

plan fees.

• To illustrate the point –
• Suppose you invested $225 per month each month for 35 years, and it grew at 7% annually.
• After 35 years, with fees at 0.5 percent, your ending value is $360,000.
• The same investment with fees at 1.5 percent grows to $287,000.
• That is $73,000—27 percent–less to live on in retirement. $73,000!
• Bottom line: you need to consider fund fees when evaluating 401(k) plans.

To see how your plan and fees stack up, get a free plan comparison.

LEGAL DISCLAIMER
Investment Products are not FDIC or any other Government Agency Insured, and may lose value. By replying to this email, you consent to Actify’s monitoring activities of all communication that occurs on Actify’s systems.We are required by IRS Circular 230 to inform you that any statements contained herein are not intended or written to be used, and cannot be used, by you or any other taxpayer, for the purpose of avoiding any penalties that may be imposed by federal tax law.
The information contained in this message and any attachments is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you have received this message in error, you are prohibited from copying, distributing, or using the information. Please contact the sender immediately by return email and delete the original message. 

Investment advisory services are provided by Actify Investor Retirements, LLC dba Corporate Payroll Services.  Actify Investor Retirements, LLC is a Registered Investment Advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.