Category Archives: Link of the Day

How Much Does Your 401(k) Cost You?

Many workers around the country participate in their company’s 401(k) plan.  While these are great vehicles to save money toward retirement, they are often loaded with high expenses and hidden fees.  This artice in the Wall Street Journal reviews what kind of information to look at when selecting mutual funds in a 401(k) plan and what to look out for.  While not necessarily groundbreaking news, the author mentions to be on the lookout for high expense ratios, 12b-1 fees, and short term trading costs.

Here’s an excerpt:

You may not realize it, but you could be paying thousands of dollars a year in fees on your 401(k) retirement account, hidden expenses that affect how your savings will grow. The government is now trying to expose those charges so you can make better investment decisions.

Under regulations proposed by the Department of Labor, 401(k) plans every year will have to disclose each investment’s annual expense ratio — the percentage that goes to management and other costs — along with more detailed performance data. In addition, any administrative or other fees deducted from your account will have to be spelled out. New regulations may go into effect as soon as Jan. 1.

Matt / Google+

Want to Make Millions? Dilbert Has the Secret

Have you ever been asked or tempted to attend a seminar that supposedly will tell you how to turn a small amount of money into millions?  You see these seminars promoted on late night television infomercials and advertisements in newspapers.  While it is certainly might be tempting to try out, many people are well aware that they are a scam.  These seminars are full of empty promises and require participants to open their checkbooks in order to hear the “secret” to making millions.  Take a look at this Dilbert comic strip to see what happens at these seminars without having to spend a dime of your own money.

Matt / Google+

A Great Time to Buy a House

During the real estate boom of the mid-2000s many sellers were in the driver’s seat. With the collapse of the real estate market, homebuyers are now the ones in control. Many of them are making all sorts of requests from sellers including having the home heating oil tank filled, repaving driveways, and even covering the buyer’s closing costs. If you are in the process of looking to buy a new house, now could not be a better time when it comes to leverage in negotiations.

Matt / Google+

Credit Card Rage

You might want to think twice about carrying a credit card balance. Credit card companies have long been accused of deceptive practices, but they are getting more aggressive with the recent credit turmoil. Today’s link of the day from BusinessWeek tells the story of David Giantomasi, who paid his credit card bill every month without missing a payment. Recently, the interest rate on his account with Chase increased from 7.99% to 19.99% without there even being a late payment. This shows that while it cannot always be avoided, carrying a credit card balance can have unforeseen consequences.

Matt / Google+