401k

 Looks like some 401(k) plans might be skinning people with hedge-fund-like fees, without people realizing we guess, despite basically  basically just administrators. If you then consider that a lot of hedge funds only charge a 1% management fee, then it gets even nastier since it means many 401(k) plans are actually charging more than many hedge funds. And all they do is give your money to other people to make the complex investment decisions. A lot of people probably don't notice since they just tick the box on their forms when getting hired, but perhaps it's worth doing a double-take and reading the fine print.

A survey of 130 401(k) plans by Deloitte Consulting LLP late last year found that plans with fewer than 100 participants pay a total amount, including flat fees paid directly by the employer, averaging 2.03% of their plan assets in annual fees, compared with 0.89% of assets paid by plans with 100 to 999 participants. The largest 401(k) plans—those with 10,000 or more participants—pay only 0.49% of assets as fees….

The higher proportional cost small firms pay takes a big bite out of retirement benefits over time. The Government Accountability Office estimates that a one-percentage-point increase in 401(k) fees borne by plan participants would cut a worker’s savings 17% over 20 years.