Lower fees2 of 8With an IRA, you lose the financial advantage of group buying power, says Bogosian.Many funds come in two flavors: institutional and retail. Most individuals don't have the required minimums to get in the former, so they must buy retail funds."Most 401(k), 403(b) and 457 plans have significant buying power -- much more than the individual," Bogosian says. His advice: "Look before you leap. You could be paying more for exactly the same thing."But be careful that you're comparing apples to apples, says Slott. It's often difficult to determine the fees charged by 401(k) plans. Related Articles:Cash out, rollover or leave 401(k)Who gets money after you die?7 steps to a Roth IRA conversionPenalty-free withdrawalsRelated Links:Target date fund pros and consUse Roth IRA as your emergency fundPitfalls of automated retirement plansSavings milestones for retirement advertisement
With an IRA, you lose the financial advantage of group buying power, says Bogosian.
Many funds come in two flavors: institutional and retail. Most individuals don't have the required minimums to get in the former, so they must buy retail funds.
"Most 401(k), 403(b) and 457 plans have significant buying power -- much more than the individual," Bogosian says. His advice: "Look before you leap. You could be paying more for exactly the same thing."
But be careful that you're comparing apples to apples, says Slott. It's often difficult to determine the fees charged by 401(k) plans.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.