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novemberrain
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Post by novemberrain »

:sharebeer
Last edited by novemberrain on Mon Oct 31, 2022 1:32 am, edited 2 times in total.
bsteiner
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Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by bsteiner »

Find out what an actuarial firm would charge to administer the plan.

Why do you need a wealth mgmt company?
Topic Author
novemberrain
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Joined: Wed May 09, 2018 12:26 pm

Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by novemberrain »

:sharebeer
Last edited by novemberrain on Mon Oct 31, 2022 1:31 am, edited 1 time in total.
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unclescrooge
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Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by unclescrooge »

novemberrain wrote: Thu Jun 17, 2021 5:08 pm This is for a small physician group.
Our balance is around 300k now. And there must be some 30-40 plan participants in the entire group. Some of the other physicians may have higher balances. I would estimate the net plan account balance to be less than $50M across all the plan participants.

I see I am being charged $800 per year as record keeping fee by the plan platform company (Fido). And another $500 as advisory fee by the "Wealth mgmt" company that manages our plan. The "wealth mgmt" company said that $800 is actually less than what Fidelity charges other plans of similar size

Is this high for a plan of our size ?

What can I do to get it reduced ?
That actually seems reasonable.

Most TPA companies charge $1-2k/year and a per participant charge of $3 or $4 per month. So that would be $1080 on the low end.

Then the custodian charges $1-2k/yr as well, plus a percentage of assets under management.

Then you pay advisor on the account. Usually either flat fee or percentage of assets under management.

Are you sure that's all you're paying???
Topic Author
novemberrain
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Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by novemberrain »

:sharebeer
Last edited by novemberrain on Mon Oct 31, 2022 1:32 am, edited 1 time in total.
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unclescrooge
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Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by unclescrooge »

novemberrain wrote: Thu Jun 17, 2021 9:28 pm
unclescrooge wrote: Thu Jun 17, 2021 8:11 pm That actually seems reasonable.
Good to know.
unclescrooge wrote: Thu Jun 17, 2021 8:11 pm Are you sure that's all you're paying???
Ha ha. Now that you mention it, I will take a second look. I do know that the advisor put us in a slightly higher fee S&P index fund. I mean it's not much, just 0.10, but far higher than the 0.03 that vtsax charges .
Maybe that's the platform fee being passed onto the employees via a higher expense ratio.
Advantageseeker
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Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Post by Advantageseeker »

Are you saying that you are being charged as an individual? The company should be paying all the fees and your company should be dealing directly with Fidelity - no middle person needed. Most fees are negotiable with Fidelity and Vanguard.
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