The Motley Fool Discussion Boards
Financial Planning / Foolish 401(k)s
|Subject: Self-Directed Account Fees||Date: 11/1/2000 5:55 AM|
|Author: pbolger||Number: 9755 of 25242|
My company will soon offer the option of putting up to 50% of one's 401-K contribution into a self-directed account, where one could buy and sell individual stocks (as opposed to the usual, mutual fund-only choices).
Sounds good at first glance, but the account incurs a $100 annual maintenance fee, and trades are $20 each. This strikes me as excessive - both in absolute terms as well as a percentage of the amount an average employee would annually contibute.
For instance, lets say someone making $50,000 a year elects to put aside 3% in the account. The $100 takes almost 7% out of that investment - this works just like the broker-sold funds which do nobody any good.
Does anyone have this option in their 401-K, and -if so - what kind of fees are associated with it?
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|