I was helping my sister look over her 401k plan, trying to figure out what she's paying in fees. In general, it's a good plan - company match of a few percent, and some index fund options.
She's invested in the index funds and also some in the non-indexes. So my thought was to compare the costs because it seemed likely worth moving everything to the indexes. But when we clicked on the "expenses and fees" tab, all it gave were the expense ratios. These were all well under 1%, although the indexes were of course the lowest.
Are we missing something? I didn't know non-index funds existed that were as cheap as indexes. But we couldn't find anything anywhere that mentioned additional costs of owning the other funds. I know that 401ks are notorious for hidden fees, but don't they at least have to tell you what it costs to buy the funds?
She's invested in the index funds and also some in the non-indexes. So my thought was to compare the costs because it seemed likely worth moving everything to the indexes. But when we clicked on the "expenses and fees" tab, all it gave were the expense ratios. These were all well under 1%, although the indexes were of course the lowest.
Are we missing something? I didn't know non-index funds existed that were as cheap as indexes. But we couldn't find anything anywhere that mentioned additional costs of owning the other funds. I know that 401ks are notorious for hidden fees, but don't they at least have to tell you what it costs to buy the funds?