FYI: SUPPOSE YOU walked into a restaurant and they handed you a menu without prices. Would you conclude that: (a) everything is free; or (b) something funny is going on?
I doubt anyone would choose the first option. It defies logic. Yet this is how the 401(k) industry routinely operates—and large numbers of people are falling for it. According to a 2018 survey by TD Ameritrade, 37% of 401(k) participants mistakenly believe that their 401(k) retirement plan is a free employee benefit—that it carries no fees. Another 22% aren’t sure whether or not their plan costs anything. And among the minority who understand they’re paying something, one third don’t know where to find the information. Just 27% of all participants actually know what they’re paying. By contrast, the survey found that 96% of consumers know exactly what they pay for inexpensive services like Netflix.
Regards,
Ted
https://humbledollar.com/2019/02/no-free-lunch/
