Reply to NPR story today on 401Ks and hidden costs

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Reply to "NPR story today on 401Ks and hidden costs"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Yes, mutual funds have management fees - you can see what percent they are when you read the small print or look them up on Morningstar.  Many mutual funds that are actively managed (a fund manager gets paid to buy and sell stocks or bonds that make up the fund) have 1-2 percent fees.  Studies show that in the long run, no one beats the market, so just buy the market (the index fund) and don't lose the fees, which add up over time.  
Vanguard mutual fund company has very low fees.  Many folks don't have vanguard as an option in their 401k.

FWIW, the TSP is the gold standard - very very low fees.  Feds should max contributions to the TSP, and keep it in there after retirement.

Now I could go on and explain how places like Ameriprise take an additional cut, thus lowering your returns even further (While telling you that you are doing really well), but that's a story for another day.[/quote]

I know this is an incredibly stupid question, but how do you buy index funds?  And which are the better ones?[/quote]

Vanguard, and buy Vanguard funds.[/quote]

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