They’re questioning your fees? Here’s help

by Jake Simms

Investors hate fees! But spelling out what fees cover can help your case.

That’s especially true for client companies’ employees. They question where their hard-earned money is going.

Advise your clients on why certain fees are charged in retirement plan materials. For example, include definitions like:

Administrative fees cover the costs of maintaining an account, such as recordkeeping, accounting and issuing statements — all of which are required by federal law.
Investment fees cover investment advice, brokerage fees, etc. — services that help maximize a retirement account’s performance over time.

Also: Listing administrative fees clearly on participants’ statements helps too.

The Department of Labor has info on 401(k) fees for employers here.

Do your clients chafe at fees? Share your experiences in the comments section.

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