Products June 8, 2007

ShareBuilder Trying to Increase 401(k) Fee Awareness

Washington-based ShareBuilder is trying to raise awareness about 401(k) participant fees, specifically calling for fees to stay below the 1% mark and for total fee transparency.
Reported by
The company’s “1% Goal” campaign makes the claim that no participant should pay more than 1% in total fees. ShareBuilder 401(k) charges a 0.75% annual asset management fee and offers exchange traded funds with an average model portfolio expense ratio of 0.21% – which brings the total fees paid to 0.96%, according to the press release.
Smaller companies end up paying larger fees because they don’t have the same negotiating clout as big clients, according to a press release from the company.
As part of the campaign to raise awareness, ShareBuilder has created a Web site – http://www.401kcostguide.com – that helps users decode 401(k) fees and illustrates how the fees impact retirement savings.
For more information, visit http://www.sharebuilder401k.com.

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