Tag: retirement
The brief’s key findings are: Due to 401(k) rollovers, IRAs have become the biggest form of retirement savings. But IRAs tend to have higher fees, partly because commissions – such as 12b-1 fees – encourage broker-dealers to sell more expensive mutual funds. 12b-1 fees would have been eliminated under a 2010 Department of Labor reform proposal. This…
The brief’s key findings are: 401(k) performance is affected by the decisions of plan administrators as well as participant choices. Administrators choose mutual funds that perform worse than comparable indexes but better than comparable, randomly selected funds. When making changes to a plan’s fund offerings, administrators chase returns and do not improve performance. Participants also tend to…
