I am a recent grad and started practicing at a small rural private practice as a W-2 employee. I am eligible to enroll in the office 401k starting in 2018 and I have some concerns. The owner doesn't seem to know much about finances and delegates everything to the local financial advisers down the street. I met with them and they walked me through the 401k through Transamerica. The expense ratios were an astounding 1.87%. I am very new to this stuff, but everything I've read tells me that that is high. The adviser told me that as the funds grew, it would go down to about 1%...and that I should focus on the savings on taxes by maxing my contributions. I also believe these guys are getting 50 base points out of the account as well. I assume that that is included in the 1.87%, but I don't know where to find that out.
I still plan on contributing the max because my employer has a 4% match, but I can't help but feel like I am throwing away thousands or more by leaving that money in there long term.
My questions" Are these fees normal for a small business 401k plan? I know that their 50bp is high, but what about the 401k? I've seen many plans on here from larger organizations with super low fees. I'm considering buying into this practice, but this 401k concerns me.
I still plan on contributing the max because my employer has a 4% match, but I can't help but feel like I am throwing away thousands or more by leaving that money in there long term.
My questions" Are these fees normal for a small business 401k plan? I know that their 50bp is high, but what about the 401k? I've seen many plans on here from larger organizations with super low fees. I'm considering buying into this practice, but this 401k concerns me.
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