The Great Resignation has left behind Retirement Accounts in the hands of expensive institutions loaded with fees
A 401K is a great benefit when you are working for a company that offers these benefits because for every dollar you put in your employer matches a certain percent; usually, employers match 4.3% of the person's pay. The most common match is 50 cents on the dollar up to 6% of the employee's pay. Some employers match dollar for dollar up to a maximum amount of 3%. This is Free Money that grows in investment accounts; although each 401k plan is different, contributions accumulated within your plan, which are diversified among stock, bond, and cash investments, can provide an average annual return ranging from 3% to 8%, depending how you allocate your funds to each of those investment options. However, with management fees and adminsitraion ranging from 1.75% to as much as 6%, your account can quickly lose value if the investments are not performing and this fees suppress the growth potential of your investment accounts. If your plan is tied to the stock market you also may suffer volatility that could wipe out your savings. In 2008, millions of Americans saw their 401k take a hit that delayed retirement for many. Taking your money out will cost you 10% unless you can meet one of these exeptions to early distributions: IRS site
