Beyond The Headline

Real Money: How to get the most out of your 401(k)

Beyond The Headline

Keeping a close eye on the details of your retirement plan can mean the difference between hundreds of thousands of dollars by the time you retire.

The Real Money team helped one Seattle family find “real money” in their 401(k) savings and their retirement plan.

Here are three tips to make sure your 401(k) is performing at its best for the long haul:

First and foremost, look at your 401(k) make sure you have the right provider. The provider could charge hidden fees, and now those fees are transparent.

You can find out exactly how much you’re going to be paying using several different applications, the first being Personal Capital. It will tell you how much you’re going to be paying in fees over the course of your career.

If you want to use NerdWallet, you can compare those providers to each other and see how much they’re charging in fees.

Tip number two: Make sure that you’re contributing to an IRA, where those fees are significantly lower than the fees you’re going to see from a 401(k).

Third, make sure that your funds are working for you that they’re not underperforming. Once again, there are applications and websites that will help you do this, beginning with CNN Money’s Asset Allocation Tool, as well as NerdWallet.

All told, our family will save over $600,000 in fees alone by the time they retire.

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