I have been retired for a few years. 65% of my funds are still in my 401K. The 401k is moving to a new management company. I am reviewing the costs associated with the 401k vs costs at Vanguard where the rest of my funds are at.
The annual fee stated is low for the 401k which is good (Max $60 a year).
For investments, the 401K states "total asset-based fees" that seem to be much lower than what I see at Vanguard. For example the Vanguard target 2020 fund in the 401k state the fee of 0.045% of fund assets while at Vanguard they state "Expense ratio" of 0.08%. I called the 401k management team and asked if the "total asset-based fees" are fees they charge in addition to the Vanguard fee and they said no. They stated they get a lower cost because of the size of the total assets they have.
Same for their 500 index fund (NTGI) which has "total asset-based fees" in the 401k of 0.008% vs Vanguard "Expense ratio" of 0.04%. The mid cap fund follows the same trend.
The JPMorgan Stable Value Fund has lower exp ratio at Vanguard than the 401K but that seem to be the exception.
So am I really comparing apples to apples here? The the costs at the 401k really lower or is there something I am missing? The old 401k management company was T Rowe which I liked. The new management company is Alight Solutions which I know very little about.
The annual fee stated is low for the 401k which is good (Max $60 a year).
For investments, the 401K states "total asset-based fees" that seem to be much lower than what I see at Vanguard. For example the Vanguard target 2020 fund in the 401k state the fee of 0.045% of fund assets while at Vanguard they state "Expense ratio" of 0.08%. I called the 401k management team and asked if the "total asset-based fees" are fees they charge in addition to the Vanguard fee and they said no. They stated they get a lower cost because of the size of the total assets they have.
Same for their 500 index fund (NTGI) which has "total asset-based fees" in the 401k of 0.008% vs Vanguard "Expense ratio" of 0.04%. The mid cap fund follows the same trend.
The JPMorgan Stable Value Fund has lower exp ratio at Vanguard than the 401K but that seem to be the exception.
So am I really comparing apples to apples here? The the costs at the 401k really lower or is there something I am missing? The old 401k management company was T Rowe which I liked. The new management company is Alight Solutions which I know very little about.
Statistics: Posted by scottwood2 — Mon Dec 18, 2023 9:30 am — Replies 2 — Views 116