I am buying out my father's small business. Slow process, but in progress. His financial advisor also provides our 401k plan. Its a capital group american funds account. I'm looking at the expenses for the first time and it seems like we are paying way too much in expense ratios? Am I wrong?
Small business safe harbor 401k plan has 1.5% expense ratios
byu/Leading_Swim7519 ininvesting
Posted by Leading_Swim7519
2 Comments
Hell to the yeah. Some of mine are .85 and I’m hating it. 1.5% bruhhhh
While that’s certainly high it’s also very possible. If the arise was doing his job he’d benchmark the plan against other record keepers every 3-5 years. Depends on the size of plan and number of participants too.
Is that 1.5% including fund expenses or is it all built in to the fund expense? American funds is typically on the expensive side.
If you can locate the summary plan description or annual fee notice that should break out the exact costs.