"Price is what you pay. Value is what you get."
Ever wonder how much you are paying for your IRA or 401(k)? We will tell you for free.
We will determine the best course of action. This includes leaving your plan where it is, or rolling it into an IRA.
We will monitor your retirement plan over time, to ensure it is in line with your goals.
Let us help you turn your nest egg into a "golden egg" that keeps providing for you. At Bentley Wealth Management, we specialize in 401(k) and IRA rollovers. Does it make sense for you to roll your plan into an IRA? Why should you care? Make sure you are asking the right questions:
What Fees Am I paying?
Over your lifetime, the guys who run your 401(k) have the potential to eat up nearly $155,000 and consume nearly one-third of investment returns, a new study by the nonpartisan research group Demos has found.
And that's just for an average family. The figure is even greater for high income households—$278,000, the group found.
"Because these fees are taken 'off the top' of investment returns or share prices, account holders generally have no idea how much all of this is costing them," the group concluded.
While the average mutual fund earns about 7 percent, post-fee returns average only 4.5 percent, "meaning that, on average, fees eat up over a third of the total returns earned by mutual funds."
Am I Getting What I Pay For?
It's been widely suspected since at least the mid-1960s that actively managed mutual funds generally under-perform passive, low-fee broad-market indexes. Fees are one of the main reasons for this, but even excluding the depressing effect of fees on a fund's returns, the funds that charge higher fees tend to perform worse than funds that charge low fees. A seminal 2009 study on the relationship between mutual fund fees and performance found "a puzzling negative relation between before-fee risk-adjusted performance and fees in a sample of U.S. equity mutual funds: funds with worse before-fee risk-adjusted performance charge higher fees."
Needless to say, this pivotal finding shows the importance of knowing how much your 401(k) plan charges in fees.