HUNT VALLEY, Md. ( TheStreet) -- The big talk in the 401(k) world is fee transparency and lower fees. It seems as if everyone has concluded that, "If we can get fees down, the rate of return will improve."But the cheapest index funds cost 0.1% to 0.4%, and the most expensive active open-end funds cost between 1.2% and 2%. Assuming both have the same annual total return, the most you can increase your return is 1.9%.
|Lower fees may mean a better rate of return, but they're only a piece of a much bigger picture.|