4 out of 10 workers aren’t taking this step to keep 401(k) fees down

Since your fee disclosure contains cost and performance information on every fund in your retirement plan, reviewing it may seem intimidating.

Resist the urge to ignore the sizeable packet your plan sends you every year.

Here are a few things you should know, according to Golladay.

Dissect your fees: Your fee disclosure will list your fund costs as a dollar amount per $1,000 invested in your retirement plan.

Go cheap: If you have low-cost funds and they meet your retirement planning goals, you’ll deploy more of your money in the market and spend less on fund fees.

Compare apples to apples: If you’re comparing fund fees, compare it to others that are in the same asset class: Bonds with bonds, and stocks with stocks.

Don’t get too tied up in performance: The tech stocks fund in your plan may be crushing its benchmark. That doesn’t mean you should put all of your cash in it.

“Just because an investment has performed well historically, it doesn’t mean it will continue to do so,” Golladay said. “That’s why diversification is important.”

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