“Beware that you do not lose the substance by grasping at the shadow.” — Aesop
A recent survey conducted by TD Ameritrade revealed just how little people know about the fees they pay for their 401(k) plans. The survey of 1,000 investors found only 27 percent of them know their 401(k) fees.
Ironically enough, the survey found a whopping 96 percent know exactly how much they pay for entertainment services such as Netflix, Spotify, and Hulu.
This is an interesting observation and although the media and some 401(k) providers including WorthPointe have emphasized lower fees, that is not enough. Correct portfolio construction is essential in overcoming and hopefully exceeding the drag on fees — and most plan sponsors and 401(k) providers put little thought into this.
The New 401(k) by WorthPointe uniquely solves both issues. We’ve become a leader in the market in providing lower cost 401(k) services and institutional no-load investments as well as the critical and under-delivered service of providing professionally managed portfolios for every 401(k) and pension plan participant.
If you’re going to buy a car and focus on price only, you will most likely end up with a junker that will get you nowhere. In the investment world, focusing only on fees is akin to grasping at shadows and thus losing the substance. The real substance of creating wealth with diversified portfolios is precise portfolio construction with the correct exposure to factors and components that over time have been shown to historically outperform conventional benchmarks.
Time and competency is also at play here, as we know most participants have neither the time nor the wherewithal to invest as effectively as they should, especially with the myriad of options they’re confronted with. That’s why The New 401(k) by WorthPointe is such a unique solution; it doesn’t just dump the confusing task of portfolio management onto the retirement plan participant, but professionally manages each participant portfolio — something that can reduce the fiduciary liability for business owners and plan sponsors.
The New 401(k): lower fees, professionally managed portfolios, the gold standard for 401(k) and pension plans.
For more information on The New 401(k) by WorthPointe and to get a second opinion, visit here.
Other articles filed under WorthPointe News
April 23, 2018 - The WorthPointe team is grateful for AdvisoryHQ’s recent inclusion of our firm in their Top 10 Best Financial Advisors in Austin, TX list. AdvisoryHQ employs a unique methodology that objectively evaluates the total assets under management (AUM), firm size and...
April 10, 2018 - In the wealthiest nation in the history of the planet, people still struggle with resources. They work so hard to achieve success, but without the component of careful planning, they may never get a firm grip on their assets. You...
March 28, 2018 - “Beware that you do not lose the substance by grasping at the shadow.” — Aesop A recent survey conducted by TD Ameritrade revealed just how little people know about the fees they pay for their 401(k) plans. The survey...
March 19, 2018 - I'm waiting for my man Twenty-six dollars in my hand... He's never early, he's always late First thing you learn is that you always gotta wait I'm waiting for my man (Lou Reed) © EMI Music Publishing These lyrics...
March 14, 2018 - “As a boutique San Diego financial advisory firm, WorthPointe provides clients with the benefit of expertly tailored and customized advice.” - AdvisoryHQ We’ve made one of AdvisoryHQ’s lists for the second year in a row in San Diego. WorthPointe has...
- Part 2: Volatile Markets – How the Financial Media Helped Build Demand for Dangerous Products Based on the VIX
- Robo Investing: The Dealer and Junkie