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LOL! · 10-17-2007, 06:31 AM

My spouse has a 401k plan from Hartford with embedded annuity fees. The fee disclosure shows that she pays about 2.5% annually. That is more than the total possible company match that she can get contributing the maximum to her 401k. The money market fund was actually losing money for a few years there because of the low interest rate and the high fees. Despite that, she gets the 33% tax break and has selected a REIT fund, an international fund and a small cap value fund.

You didn't write how long you have used your 401k nor how much money you had in it. I think it is true that one's contributions will provide the bulk of the annual increase for the first decade of contributions. Only after that will the account have a chance to grow more from investment return. The math says this is the way it has to be.

10-17-2007, 06:31 AM	#3
LOL! Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 3,080	My spouse has a 401k plan from Hartford with embedded annuity fees. The fee disclosure shows that she pays about 2.5% annually. That is more than the total possible company match that she can get contributing the maximum to her 401k. The money market fund was actually losing money for a few years there because of the low interest rate and the high fees. Despite that, she gets the 33% tax break and has selected a REIT fund, an international fund and a small cap value fund. You didn't write how long you have used your 401k nor how much money you had in it. I think it is true that one's contributions will provide the bulk of the annual increase for the first decade of contributions. Only after that will the account have a chance to grow more from investment return. The math says this is the way it has to be.