LOW COST GREAT SERVICE
When Free is Expensive
Many 401(k) providers will market their plans as essentially “free” because there are no explicit hard dollar costs for recordkeeping, administrative fees etc…. But we all know, that there is no free lunch in this world.
If you encounter a “free” plan, ironically, you could be in an extremely expensive plan. What their idea of “free” really means is that all fees are coming out of the investment expenses. Said another way, the mutual funds in the plan are sharing in their revenues to pay these fees. But this directly subtracts from your potential returns and most importantly the financial resources you will have when you need it most, at retirement. In addition, your plan may also include more explicit fees such as advisory fees and “hard dollar” costs.
Americas Best 401k takes a “line item” approach to our pricing where every fee is explicitly and transparently shown. This way, you know exactly how much are you paying down to the penny. And since no fees are received from the underlying funds, this allows us to select the best performing, lowest cost funds available.