A 401(k) plan has lots of fees, and savvy investors may be aware of various investment-related charges – such as a management fee to a mutual fund manager's or the sales commission paid when making a transaction.
What most people don't know, however, is that 401(k) plans also include several other hidden fees that can eat away at their investments.
These include so-called "12b-1 fees" (which are marketing fees passed along to investors) and administrative costs of various types imposed by retirement plan sponsors.
Finding these fees isn't easy. In fact, you have to pore over a fund's prospectus and an annual report to ferret out exactly what charges are imposed by a 401(k) retirement plan.
Perhaps this explains why, according to an AARP survey, more than 80% of retirement plan participants have no idea what their 401(k) charges. Even worse, some people mistakenly think that investing in their 401(k) plan on the job is "free" and that no fees are charged.
In reality, in 2009, 401(k) investors in stock funds paid an average expense of .74% of their assets, while the typical bond investor paid an average of .55%, according to a report from the Investment Company Institute.
Think small numbers don't make a big difference? Think again. A GAO report found that a typical retiree will lose about $100,000 when their 401(k) plan has fees of 1.5%, instead of .5% in fees. That's just a one percentage-point difference, but it has a huge impact.
Fortunately, there is some good news on this topic and change is soon coming. Under new guidelines issued by the U.S. Labor Department, by January 1, 2012 retirement plans will have to do a better job of clearly disclosing their fees and charges. Right now, disclosure is murky at best.
In the meantime, until disclosure improves, there is an easy way to see what your employer-sponsored retirement plan is costing you.
A company called BrightScope rolled out a free service in 2009 that will rate your 401(k) plan. BrightScope has analyzed 50,000 retirement plans, which represents about 90% of the $3 trillion held in 401(k) plans.
BrightScope offers a free analysis called a Personal 401(k) fee report. It's a tool that breaks down exactly how much you're paying to have that 401(k) – in terms of a fund's overall expenses, administrative charges, marketing fees and so on.
Based on BrightScope's data, fees are all over the board, ranging from as little as .20% to as much as 5%. Small plans typically charge more than large plans, mainly because the smaller plans can't achieve the same economies of scale.
Curious to know what fees you're paying to invest through your company's 401(k) plan? Visit BrightScope's site and find out in about three minutes.
Despite the positive-sounding headline, the NYT article was actually negative in tone, starting off with a joke about how an Android developer making $1-$2 per day on his app was laughed at by his peers, while insisting "that's pretty good money!"
The blows against Android then continue with a quote from Matt Hall, co-founder of Larva Labs, who talked about the problems with Google Checkout. Then Rovio's (maker of Angry Birds) Peter Vesterbacka complained about the challenges of developing for such a fragmented environment. And then it was Hall again, with a quote that's already getting repeated on Apple-watching blogs like John Gruber’s Daring Fireball:
"Google is not associated with things you pay for, and Android is an extension of that," said Mr. Hall of Larva Labs. "You don't pay for Google apps, so it bleeds into the expectations for the third-party apps, too."
There Are Ways to Get Paid
If you want to debate the merit of the above statements, feel free to head to the comments section, but we feel the need to point out the obvious miss from the NYT article: there are alternative revenue streams for developers besides direct app sales. (After all, even Google's "free" services aren't actually free - they're monetized through advertising.)
We recently highlighted some findings related to this matter earlier this month. For example, research from mobile ad company Millennial Media found that Android ad revenue has, for the first time ever, beaten iPhone ad revenue on the company's ad network.
At the time, we wondered why, given the lower ad impression numbers (as compared with iPhone/iOS). As it turns out, Millennial's Michael Avon had some thoughts on the matter. Besides the fact that there is simply less ad inventory amid soaring demand on Android, he also shared that Android is currently a "hot" platform for advertisers as it allows them to reach first-time smartphone buyers and a more diverse set of consumers.
"We believe some advertisers are paying a premium to reach those users early in their smartphone experience," he said. "Our advertisers have also shared that Android allows them to reach a diverse set of consumers across all major carriers, making the platform highly desirable and increasing demand for the platform...With more advertiser demand per each available impression on Android, it resulted in more revenue per impression."
The NYT article also makes brief mention of the lack of an in-app purchases model for Android, another disappointment for developers, especially since we recently learned that in-app purchases generate more revenue than ads, in some app categories.
However, as we also noted last week, developers don't have to wait on Google to implement an official in-app purchase mechanism, because there are several third-party solutions already available, including Boku and Zong for virtual goods and PayPal's in-app purchases technology for physical goods.
NYT had one good thing to say about Android development: because of the store sizes (100K vs 300K apps/Android vs iPhone) it's easier to get noticed in the Android Market today than it is in the iTunes App Store. Well, at least there's that.
Breathe Better With Bitter - Science <b>News</b>
Science News. Vol. 175, March 28, 2009, p. 11. [Go to]. Citations & References : seperator. D. A. Deshpande et al. Bitter taste receptors on airway smooth muscle bronchodilate by localized calcium signaling and reverse obstruction. ...
Fox <b>News</b> Poll: GOPer Raese Leads By Two Points In WV-SEN | TPMDC
The new Fox News poll of the West Virginia Senate race has Republican businessman John Raese holding on to a narrow lead against Democratic Gov. Joe Manchin.
Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.
bench craft company complaints
bench craft company complaints
Breathe Better With Bitter - Science <b>News</b>
Science News. Vol. 175, March 28, 2009, p. 11. [Go to]. Citations & References : seperator. D. A. Deshpande et al. Bitter taste receptors on airway smooth muscle bronchodilate by localized calcium signaling and reverse obstruction. ...
Fox <b>News</b> Poll: GOPer Raese Leads By Two Points In WV-SEN | TPMDC
The new Fox News poll of the West Virginia Senate race has Republican businessman John Raese holding on to a narrow lead against Democratic Gov. Joe Manchin.
Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.
bench craft company complaints bench craft company complaints
A 401(k) plan has lots of fees, and savvy investors may be aware of various investment-related charges – such as a management fee to a mutual fund manager's or the sales commission paid when making a transaction.
What most people don't know, however, is that 401(k) plans also include several other hidden fees that can eat away at their investments.
These include so-called "12b-1 fees" (which are marketing fees passed along to investors) and administrative costs of various types imposed by retirement plan sponsors.
Finding these fees isn't easy. In fact, you have to pore over a fund's prospectus and an annual report to ferret out exactly what charges are imposed by a 401(k) retirement plan.
Perhaps this explains why, according to an AARP survey, more than 80% of retirement plan participants have no idea what their 401(k) charges. Even worse, some people mistakenly think that investing in their 401(k) plan on the job is "free" and that no fees are charged.
In reality, in 2009, 401(k) investors in stock funds paid an average expense of .74% of their assets, while the typical bond investor paid an average of .55%, according to a report from the Investment Company Institute.
Think small numbers don't make a big difference? Think again. A GAO report found that a typical retiree will lose about $100,000 when their 401(k) plan has fees of 1.5%, instead of .5% in fees. That's just a one percentage-point difference, but it has a huge impact.
Fortunately, there is some good news on this topic and change is soon coming. Under new guidelines issued by the U.S. Labor Department, by January 1, 2012 retirement plans will have to do a better job of clearly disclosing their fees and charges. Right now, disclosure is murky at best.
In the meantime, until disclosure improves, there is an easy way to see what your employer-sponsored retirement plan is costing you.
A company called BrightScope rolled out a free service in 2009 that will rate your 401(k) plan. BrightScope has analyzed 50,000 retirement plans, which represents about 90% of the $3 trillion held in 401(k) plans.
BrightScope offers a free analysis called a Personal 401(k) fee report. It's a tool that breaks down exactly how much you're paying to have that 401(k) – in terms of a fund's overall expenses, administrative charges, marketing fees and so on.
Based on BrightScope's data, fees are all over the board, ranging from as little as .20% to as much as 5%. Small plans typically charge more than large plans, mainly because the smaller plans can't achieve the same economies of scale.
Curious to know what fees you're paying to invest through your company's 401(k) plan? Visit BrightScope's site and find out in about three minutes.
Despite the positive-sounding headline, the NYT article was actually negative in tone, starting off with a joke about how an Android developer making $1-$2 per day on his app was laughed at by his peers, while insisting "that's pretty good money!"
The blows against Android then continue with a quote from Matt Hall, co-founder of Larva Labs, who talked about the problems with Google Checkout. Then Rovio's (maker of Angry Birds) Peter Vesterbacka complained about the challenges of developing for such a fragmented environment. And then it was Hall again, with a quote that's already getting repeated on Apple-watching blogs like John Gruber’s Daring Fireball:
"Google is not associated with things you pay for, and Android is an extension of that," said Mr. Hall of Larva Labs. "You don't pay for Google apps, so it bleeds into the expectations for the third-party apps, too."
There Are Ways to Get Paid
If you want to debate the merit of the above statements, feel free to head to the comments section, but we feel the need to point out the obvious miss from the NYT article: there are alternative revenue streams for developers besides direct app sales. (After all, even Google's "free" services aren't actually free - they're monetized through advertising.)
We recently highlighted some findings related to this matter earlier this month. For example, research from mobile ad company Millennial Media found that Android ad revenue has, for the first time ever, beaten iPhone ad revenue on the company's ad network.
At the time, we wondered why, given the lower ad impression numbers (as compared with iPhone/iOS). As it turns out, Millennial's Michael Avon had some thoughts on the matter. Besides the fact that there is simply less ad inventory amid soaring demand on Android, he also shared that Android is currently a "hot" platform for advertisers as it allows them to reach first-time smartphone buyers and a more diverse set of consumers.
"We believe some advertisers are paying a premium to reach those users early in their smartphone experience," he said. "Our advertisers have also shared that Android allows them to reach a diverse set of consumers across all major carriers, making the platform highly desirable and increasing demand for the platform...With more advertiser demand per each available impression on Android, it resulted in more revenue per impression."
The NYT article also makes brief mention of the lack of an in-app purchases model for Android, another disappointment for developers, especially since we recently learned that in-app purchases generate more revenue than ads, in some app categories.
However, as we also noted last week, developers don't have to wait on Google to implement an official in-app purchase mechanism, because there are several third-party solutions already available, including Boku and Zong for virtual goods and PayPal's in-app purchases technology for physical goods.
NYT had one good thing to say about Android development: because of the store sizes (100K vs 300K apps/Android vs iPhone) it's easier to get noticed in the Android Market today than it is in the iTunes App Store. Well, at least there's that.
bench craft company complaints
Breathe Better With Bitter - Science <b>News</b>
Science News. Vol. 175, March 28, 2009, p. 11. [Go to]. Citations & References : seperator. D. A. Deshpande et al. Bitter taste receptors on airway smooth muscle bronchodilate by localized calcium signaling and reverse obstruction. ...
Fox <b>News</b> Poll: GOPer Raese Leads By Two Points In WV-SEN | TPMDC
The new Fox News poll of the West Virginia Senate race has Republican businessman John Raese holding on to a narrow lead against Democratic Gov. Joe Manchin.
Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.
bench craft company complaints bench craft company complaints
Breathe Better With Bitter - Science <b>News</b>
Science News. Vol. 175, March 28, 2009, p. 11. [Go to]. Citations & References : seperator. D. A. Deshpande et al. Bitter taste receptors on airway smooth muscle bronchodilate by localized calcium signaling and reverse obstruction. ...
Fox <b>News</b> Poll: GOPer Raese Leads By Two Points In WV-SEN | TPMDC
The new Fox News poll of the West Virginia Senate race has Republican businessman John Raese holding on to a narrow lead against Democratic Gov. Joe Manchin.
Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.
bench craft company complaints bench craft company complaints
Breathe Better With Bitter - Science <b>News</b>
Science News. Vol. 175, March 28, 2009, p. 11. [Go to]. Citations & References : seperator. D. A. Deshpande et al. Bitter taste receptors on airway smooth muscle bronchodilate by localized calcium signaling and reverse obstruction. ...
Fox <b>News</b> Poll: GOPer Raese Leads By Two Points In WV-SEN | TPMDC
The new Fox News poll of the West Virginia Senate race has Republican businessman John Raese holding on to a narrow lead against Democratic Gov. Joe Manchin.
Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.
bench craft company complaints bench craft company complaints
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