No. of Recommendations: 0
SOMEBODY pays the loads for funds in your 401k. It is possible that it is your employer. Your employer pays the trustee that manages your 401k money, and how much of that payment is directly to the trustee for doing the paperwork, vs to the fund managers at Merrill Lynch and the like.
Note that you probably do not receive a paycheck-by-paycheck accounting of how many shares of which fund were purchased for your account on what day. Your employer does have a little leeway as to when to turn over deducted funds to the trustee, but if you get paid on Friday, make the assumption that your employer pays the trustee the following Monday, keep a spreadsheet showing your assumed number of shares bought at the price in the paper, I believe you will find that your returns are consistently less than what you calculate. The fee paid to the trustee may or may not be shown on your statement.

The fees may be invisible, but I assure you both the trustee and the mutual fund companies get paid!
With this array of mutual fund choices, I'd go have a talk with the person in HR who presented the plan to you, about giving you some lower-cost choices.
It could be worse. I've seen plans where all the choices are annuity shares!
Best wishes, Chris
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.