Evaluating new fund options in a 401(k) plan
Check out the fees of the new fund options
When considering making a change in your 401(k) plan, expenses are a key consideration, says Nauta. The more expensive a fund, the more it impacts a fund's return, which adversely affects the growth of your retirement assets.
Fund expenses are expressed in terms of percentages and aren't always easy to figure out. Bankrate's mutual fund fees calculator can help you understand the costs of a given fund.
While you certainly don't want to stuff your portfolio with funds that have similar objectives and strategies, it makes sense to replace an existing fund that is expensive with a similar fund that costs less.
Maximize your 401(k), and retire in style
No matter where you are in your career, be sure to make the most of your workplace retirement plan.