Why Asset Fees Matter.
Asset fees are the unseen cancer that eats away at retirement savings. Mutual funds that are actively
said to "beat the market" charge huge fees to those whose money they manage. Why are asset fees so
sneaky? Just a 1%
increase in fees assessed to you can decrease your retirement nest egg by over 20% by the time you
line: Fees are a big deal.
Don't be fooled into thinking you can outsmart the market year over year. Your odds of beating the market
net of fees are about 4%, less than half the odds of winning at a blackjack table in Vegas when you yell
"Hit me!" with two face cards (worth 20) already in your hand. Just a few extra percentage points of
annual fees can mean the difference between $360,000 and $640,000 over 25 years."
*Assumes participant with $75,000 at age 40 saving $5,000 per year until age 65. Rates of return
based on a Burgess
and Associates study examining the performance of 14,487 retirement plan participants from 1997-2006.
5.30% represents the
gross return for the Non-Lifestyle group (i.e. do-it-yourselfers) represented by those participants who
chose their own
portfolio mix throughout the period (assumed for Online and Typical Full Service). 7.2% represents the
gross return for
participants using professionally managed portfolios (assumed for BenefitGuard). All rates of return are
are not meant to represent any particular investment. BenefitGuard, Inc. does not guarantee investment
fees are assumed at 0.99%, 1.22% and 2.08% for BenefitGuard, Online, and Typical Full Service,
respectively, and are
based on market observations. Pricing varies by plan assets and number of employees. Ask us for a
proposal for your company.