When a lot of people start planning for retirement the first fund that they reach for is their employer matched 401(k). In theory it sounds great, you put money into the account to earn interest and your employer gives you the same amount to also put in and earn interest.
The dirty little secret that most of us don’t realise about our 401(k)’s is the enormous amount of fees associated with them.
Over the lifetime of your 401(k) you’ll pay around 30 per cent of your earnings in various fees. That adds up to an average of $155,000.
To find out more about the secret life of your 401(k) check out the graphic from Personal Capital below:
Photo: Personal Capital