Find The Fees In Your Funds With Feex
Warning: This information will shock you. I did this for my husband’s 401(k) today and nearly choked on my soup. Check out how much we would pay in fees with our current allocation in this account:
So let me get this straight: When my husband reaches retirement, we will have paid nearly $70,000 in fees for his 401(k)? That is $70,000 that we will NOT be withdrawing for our retirement? I’m not okay with this everybody….
Right now this 401(k) is invested in a conservative income fund. We had decided to change it from a high-risk stock-based investment to a low-risk conservative fund but I had NO idea it was such an expensive option until now!
Feex suggested a few low-fee index funds. They are 99% stock-based, however, so now we have to weigh the options: Do we pay a lot for a conservative, almost no-growth fund? Or do we pay a little for a riskier stock-based game? Given that this is our only stock investment vehicle (I’ll explain why in another post), I think it makes sense to re-allocate to a lower-fee fund. So I’ll be doing that pronto.
When I began managing our family finances, one of the most shocking things I learned was how expensive most investment accounts are. Consider that the average mutual fund fee is 1.5%. That doesn’t sound like much but as you can see above, it adds up!
Another awesome thing about Feex: You give it your credentials to sign in to your investment accounts and it finds ALL of the fees you are paying. Some of these fees have been clearly delineated on your statement but others — such as fund expense ratios — are quietly subtracted from your balance. Not okay!
I highly recommend giving this service a try. It costs you nothing but the knowledge you will gain is priceless. Feex makes money if you open an account with one of their suggested providers. If you don’t, you still get a heap of great info!
And as for what to do if you’re paying an exorbitant amount in any one account and are not sure about the suggestions from Feex, let me know and I’ll help you decipher if I can!