Article originally posted by SmartAsset.com
Written by Rebecca Lake
Smart savers know that contributing money to your employer’s 401(k) and taking advantage of the company match is a no-brainer when it comes to planning for retirement. What you may not know is exactly how your 401(k) works or that hidden fees could steadily be chipping away at your nest egg. According to a recent study from the Center for American Progress, workers could be losing up to $70,000 over the course of their career due to high 401(k) management fees. If you’re worried about fees putting your retirement in danger, here’s what you need to know.
Identifying the Culprits
Generally, the types of fees associated with a 401(k) or similar retirement savings account can be divided into one of three categories: plan administration fees, investment fees and individual service fees.
Administration fees typically cover a variety of expenses associated with the day-to-day operation of a 401(k) plan, such as costs for legal or trustee services, recordkeeping, investment advice and online services. Investment fees cover any and all expenses required to manage the different investment choices offered by the plan. Service fees are usually only charged when you take advantage of certain option features associated with your 401(k). For example, you may be assessed a service fee for taking out a loan from your account.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.