Hi guys,
tl;dr: is .65% expense ration bad? Am i getting bent out of shape over nothing?
I’ve been asking some questions about my 401k plan and have found out that my funds have a .65% expense ratio. I know that this isn’t too bad, but i hate the idea of giving money to these advisors who essentially do nothing.
I asked the guy if there was a way for me to manage my account as really all he “does” is set up my auto invest and the rest is just buying this one fund (RGAEX - had the lowest expense ratio).
He said there isn’t a way to waive the fee or manage the account myself. I’m used to investing in VTI and VT so the expense ratios are super small.
The guy said the fee helps pay for their salary, and i get “professional advice” which i honestly don’t need as investing is extremely simple at my income level. He said it comes out to be $5 for every thousand, is this true?
Am I being a Scrooge? I saw somewhere that 1% fees take about 200k i returns away from you in the long run.
original posted by Goose_Energy to r/personalfinance on Fri, 12 Apr 2024 15:40:09 GMT.