Maximizing Retirement Savings Growth

​

Lower investment fees allow more of an employee's 401(k) contributions and investment returns to compound tax-deferred over time. Even seemingly small differences in fees can translate to tens or hundreds of thousands of dollars less in retirement savings for higher-cost options.

 

For example, a 0.5% higher annual fee could reduce an employee's account balance by around 28% over 35 years of saving. 

 

Minimizing fees maximizes the growth potential of employees' hard-earned retirement savings.

​

Fiduciary Responsibility

​

Plan sponsors have a fiduciary duty under ERISA to ensure investment fees are reasonable for the services provided. Offering lower-cost options demonstrates the plan is being managed prudently and in the best interests of participants.

​

Increased Transparency

​

Lower-fee investments, especially passive index funds, tend to have more transparent expense ratios that are easier for employees to understand. This transparency empowers employees to make better informed investment decisions.

​

Aligning Interests

​

Unlike higher-fee actively managed funds, lower-cost passive options have no incentive to take excessive risk in attempts to beat the market. Their interests are fully aligned with participants' - providing market returns at the lowest possible cost.

​