How Your 401k Plan Shares May Be Overpriced

Episode 44 of The 401k Podcast unpacks a hidden cost in your retirement plan: collective trusts and separate accounts that can charge higher fees than comparable institutional mutual funds. Lucas and Luna walk through a real example from a mid-sized tech company's 401k menu, where a collective trust tracking the S&P 500 had an expense ratio of 0.12 percent, while an institutional Vanguard index fund tracking the same benchmark costs just 0.04 percent. They explain why plan sponsors sometimes choose the pricier option — customization, revenue sharing, or lack of bargaining — and how you can spot overpriced shares in your own plan. The episode also covers the SEC's 2022 guidance on collective trust fee disclosure, and a recent lawsuit against a large 401k provider that shone a light on hidden revenue streams. If you've ever wondered why two similar funds in your 401k have wildly different fees, this episode is for you. #401k #RetirementPlans #CollectiveTrusts #SeparateAccounts #ExpenseRatios #PlanFees #HiddenFees #SEC #FiduciaryDuty #RevenueSharing #InstitutionalFunds #IndexFunds #S&P500 #Vanguard #Fexingo #Finance #BusinessPodcast #FexingoBusiness Keep every episode free: buymeacoffee.com/fexingo