Re:Tesla skips 401(k) match for third straight year
by CydeWeys on Tuesday February 09, 2021 @11:41AM
(#26079544)
Many 401k plans have 0% fees and tiny fees on plan investments. I'm paying 0% fees on my 401k plan and absurdly low fees on the Vanguard Institutional Plus funds within it: .01-.04% per year depending on fund. (No that is not a typo.)
It all depends on the plan provider. The big ones like Vanguard, Fidelity, Schwab, etc., are all rock solid.
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Making some reasonable assumptions about a worker with 30 years to retirement, the 1980 version of the 401(k) tax deferral was equivalent to an additional investment return of 9.2% per year, an extraordinary incentive to save for retirement, even without an employer match. Using today’s numbers the benefit comes out to 0.6%, considerably less than the 1% to 2% in fees investors pay in typical 401(k) plans. https://www.bloomberg.com/opinion/articles/2020-07-21/401-k-...