Chapter 4

What is Wrong with 401(k)'s and IRA's?

VIDEO #1: 60 Minutes Clip

The first problem is stock market risk. Do you feel that our economy is stable? What if the market crashes again? What if that crash happens right after you retire and your nest egg gets obliterated? That would be horrible! This 1-minute clip from television show 60 Minutes aired after the 2008 market crash. 

VIDEO #2: US Debt Visuialized

We are currently $31.5 Trillion in government debt and that number is growing at an alarming rate. The problem is that it’s hard for most people to fully grasp the diff erences between a Million, a Billion and a Trillion. The following video will give you a clear idea of just how far in debt we are. 

REPORT: The Retirement Savings Drain

A report titled, The Retirement Savings Drain—The Hidden and Excessive Costs of 401(k)s lays out the following fact. An ordinary family household will pay an average of $155,000 over the course of their lifetime in eff ective total 401(k) fees. Unless your employer provides a very high matching contribution, which has become increasingly rare with time, you should be seriously looking for a better way to save. I would certainly never recommend putting in anything above the employer match unless you like putting your funds in tax prison. 

Hiltonsmith, R. (2012). The Retirement Savings Drain: Hidden & Excessive Costs of 401(k)s. hidden-excessive-costs-401ks 

401(k) Hidden Fees

Tony Robbins on 401(k) Fees

A Look at 401(k) Fees from the US Department of Labor 

VIDEOS #3, #4 & #5: Hidden Fees

The following videos talk more about those hidden fees. The first tells the true story of a man who noticed the numbers were not adding up. An independent Actuary audited his account and discovered that hidden fees had consumed 40%- 60% of the value of his 401(k) account. I had been in this business for 20 years when I fi rst saw this video, yet I was absolutely stunned. Transparency has increased over the years, but the fact remains that hidden fees are still eating away at your retirement dollars. I’ve also included a video from Tony Robbins, and another from the US Department of Labor… Buyer beware! 

Get Your Digital and Print Copies of Money Smarts

Check out these links:

Click the button below to purchase

The Money Smarts eBook:

Click the button below to purchase

The Money Smarts Audio Book:


Join the FEG Living Benefits Crusade and become an FEG Agent today:

2023 Money Smarts. All rights Reserved | Disclaimer