Everyone with an interest in investment funds wants to know "the number" that 401(k) plans must start disclosing as of Sunday — all of their fees.
Shock and awe is expected after the new fee figures start to go public ahead of the Fourth of July fireworks. Financial advisers arewarning: “What You’re About to Learn Will Shock You.”
At the risk of putting out a spoiler alert ahead of the fireworks, you should know it might a dud at first, but just wait. Save your shock for the awesome results that will follow once people start to absorb the data, which must be finalized by July 1. That day is a Sunday, and it will surely take time for people to absorb the number and understand what they really pay to have "safe" money in a 401(k).
The plan is to make fund figures as simple to read as a billboard ad. The U.S. Department of Labor set the July deadline for 401(k) plan administrators to have simple dollar figures available that tell what fees you pay for each $1,000 you invest. But nothing is simple when people's money is involved.
“The disclosures are a huge step forward," said former Intuit chief Bill Harris, who is now chief executive officer of financial advice provider Personal Capital. "But it’s really not sufficient.”