A 401(k) plan has lots of fees, and savvy investors may be aware of various investment-related charges – such as a management fee to a mutual fund manager's or the sales commission paid when making a transaction.
What most people don't know, however, is that 401(k) plans also include several other hidden fees that can eat away at their investments.
These include so-called "12b-1 fees" (which are marketing fees passed along to investors) and administrative costs of various types imposed by retirement plan sponsors.
Finding these fees isn't easy. In fact, you have to pore over a fund's prospectus and an annual report to ferret out exactly what charges are imposed by a 401(k) retirement plan.
Perhaps this explains why, according to an AARP survey, more than 80% of retirement plan participants have no idea what their 401(k) charges. Even worse, some people mistakenly think that investing in their 401(k) plan on the job is "free" and that no fees are charged.
In reality, in 2009, 401(k) investors in stock funds paid an average expense of .74% of their assets, while the typical bond investor paid an average of .55%, according to a report from the Investment Company Institute.
Think small numbers don't make a big difference? Think again. A GAO report found that a typical retiree will lose about $100,000 when their 401(k) plan has fees of 1.5%, instead of .5% in fees. That's just a one percentage-point difference, but it has a huge impact.
Fortunately, there is some good news on this topic and change is soon coming. Under new guidelines issued by the U.S. Labor Department, by January 1, 2012 retirement plans will have to do a better job of clearly disclosing their fees and charges. Right now, disclosure is murky at best.
In the meantime, until disclosure improves, there is an easy way to see what your employer-sponsored retirement plan is costing you.
A company called BrightScope rolled out a free service in 2009 that will rate your 401(k) plan. BrightScope has analyzed 50,000 retirement plans, which represents about 90% of the $3 trillion held in 401(k) plans.
BrightScope offers a free analysis called a Personal 401(k) fee report. It's a tool that breaks down exactly how much you're paying to have that 401(k) – in terms of a fund's overall expenses, administrative charges, marketing fees and so on.
Based on BrightScope's data, fees are all over the board, ranging from as little as .20% to as much as 5%. Small plans typically charge more than large plans, mainly because the smaller plans can't achieve the same economies of scale.
Curious to know what fees you're paying to invest through your company's 401(k) plan? Visit BrightScope's site and find out in about three minutes.
As part of the ongoing Mashable Awards, we’re taking a closer look at each of the nomination categories. This is “Best Social Media Service for Small Business.” Be sure to nominate your favorites and join us for the Gala in Las Vegas! Sponsorships are available. Please contact sponsorships@mashable.com for more information.
Throughout the year we’ve spoken to many small business owners, asking them about their best practices, recommendations and success stories in the social media space.
Pulling from their experiences, we’ve learned that choosing social platforms should be based on what type of content your company produces, where your audience is already active, what your goals are, and how you plan to add value for your business’s followers.
While every social platform isn’t fit for all businesses, there are quite a few standout services that can be utilized throughout many industries. Here are our top picks for social media services for small businesses — many of these may not be surprising, but that’s because the success stories we’ve heard have proven them over and over again.
Which social media services do you recommend for small businesses? Add your thoughts in the comments below.
1. Communications Service: Twitter
When you ask business owners about their social media strategies, Facebook and Twitter are generally among the first words that come up. These two platforms have become the go-to, entry-level platforms for business owners looking to get more social.
For quick, effective communication, though, our vote goes to Twitter. The micro-blogging service enables businesses to quickly and effectively enhance customer service, business development, public relations and even lead generation. Through these types of communication, businesses humanize their brands, making them seem more friendly and approachable.
Not only that, unlike many other social sites, Twitter is easy to set up due to its minimalist approach. While setup and growing a following entails a bit of a learning curve for new users, maintaining a Twitter presence is simple once you’ve got it together. In short, Twitter is a big win for small businesses.
Also noteworthy: Facebook
2. Video-Sharing Service: YouTube
From speeches and tours to tutorials and documentaries, small businesses are using web video in a lot of creative ways — even CEOs are getting involved. Businesses are using a number of services, but our top pick for small businesses is still the video king, YouTube.
In November 2008, YouTube surpassed Yahoo as the second largest search engine in the U.S., only next to Google. It has maintained that spot ever since. While business owners may be able to benefit from better aesthetics and revenue models on other video-hosting sites, YouTube offers visibility, familiarity and a massive audience.
Also noteworthy: Vimeo, Blip.tv
3. Twitter Photo-Sharing Service: Twitpic
There are a lot of Twitter photo-sharing services to sift through, but the most popular one is TwitPic.
Photo-sharing on Twitter can be a great way to showcase products and give a behind-the-scenes look at your business. Really, you can’t go wrong with most of the Twitter photo-sharing services out there. The majority are easy to use, only require users to sign in via Twitter oAuth, and showcase photos in a timeline. TwitPic adds the extra value of being recognizable within your Twitter stream.
Also noteworthy: Plixi, yfrog
4. Location-Based Service: Foursquare
Social media adoption rates among small businesses have grown dramatically this year, and location-based services are high on the list of emerging platforms of interest. While there are a handful of quality location-based services out there, including the recently launched Facebook Places, we believe that Foursquare still offers the best small business experience.
In the coming year, SCVNGR may give Foursquare a run for its money because of its innovative approach to the space, but for now, Foursquare wears the crown for being accessible to both the biggest brands and the smallest companies.
Also noteworthy: SCVNGR, Gowalla
5. Blogging Platform: Tumblr
Corporate blogs are catching on with companies of all types and sizes. To build an excellent corporate blog, you need compelling content, dedicated writers and, of course, a blogging platform.
Tumblr makes blogging almost as easy as tweeting, and puts a heavier focus on the social aspects of blogging than most platforms. The interface is easy to use, there are a ton of great themes, and the re-blogging feature makes it easy for users to share content.
Also noteworthy: WordPress.com, Blogger, Posterous
6. Social Media Dashboard: TweetDeck
Dealing with multiple social media accounts across various platforms is a total downer, but luckily there are lots of social media management tools to help, and TweetDeck seems to be a top pick among small business owners that we’ve spoken to. It’s free and enables users to connect across Twitter, Facebook, MySpace, LinkedIn, Foursquare and Google Buzz.
The dashboard is clean, customizable and easy to use, allowing users to organize feeds, mentions, messages and searches across multiple columns.
Also noteworthy: HootSuite, Seesmic, CoTweet, Postling
7. Funding Platform: Kickstarter
For startups and small businesses looking for funding, we recommend Kickstarter, a service for crowd sourcing funds for “creative ideas and ambitious endeavors.”
Kickstarter operates on an all-or-nothing model. Project owners choose a goal and a deadline, and if the project isn’t fully funded when time expires, then no money changes hands.
Small businesses can benefit from such a site by starting projects for business goals of all sorts — the most successful projects on Kickstarter are often out-of-the-box undertakings, though, so get creative. One recent project, for example, has a goal of buying equipment to make sheep’s milk soap. The farmer already herds sheep but is looking to raise funds to pay for an expansion of her soap production business. The project has already attracted 16 backers to fulfill the $500 goal, and it still has a few weeks to go.
Also noteworthy: IndieGoGo, Invested.in
What’s Your Take?
Which social media services does your small business use and recommend? Let us know in the comments or nominate them for the Mashable Awards.
The Mashable Awards Gala at Cirque du Soleil Zumanity (Vegas)
In partnership with Cirque du Soleil, The Mashable Awards Gala event will bring together the winners and nominees, the Mashable community, partners, media, the marketing community, consumer electronics and technology brands and attendees from the 2011 International CES Convention to Las Vegas on Thursday, January 6, 2011. Together, we will celebrate the winners and the community of the Mashable Awards at the Cirque du Soleil Zumanity stage in the beautiful New York New York Hotel. The event will include acts and performances from our partner Cirque du Soleil Zumanity. In addition, there will be special guest presenters and appearances.
Date: Thursday, January 6th, 2011 (during International CES Convention week)
Thanks to our sponsors:
Mashable Awards Gala Partner:
From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil is now a global entertainment organization providing high-quality artistic entertainment. The company has over 5,000 employees, including more than 1,200 artists from close to 50 different countries.
Cirque du Soleil has brought wonder and delight to nearly 100 million spectators in 300 cities on five continents. In 2010 Cirque du Soleil, will present 21 shows simultaneously throughout the world, including seven in Las Vegas.
For more information about Cirque du Soleil, visit www.cirquedusoleil.com
Mashable Awards Online Partner:
Have you ever wished for your own personal gourmet Chef?
The Fresh Diet is like having a Cordon Bleu chef prepare your meals in your own kitchen. There’s no cooking, cleaning, shopping – just fresh prepared delicious meals, hand delivered to your door daily! Whether you want to lose weight or just want to eat healthy, The Fresh Diet can help you meet your goals. The best news, we’re giving away a FREE week of The Fresh Diet every day on our Facebook page. Just click here to become a fan and you could be the next winner. Join now!
Mashable Awards Partner:
Join us at the 2011 International CES®, the global platform for inspired ideas and innovation. With 2,500 exhibitors, CES continues to be the world’s largest consumer technology tradeshow and always reflects the dynamic consumer electronics industry. The International CES is not open to the general public and all attendees must be in the CE industry to be eligible to attend the show. Register FREE for the 2011 CES with priority code MSHB, an exclusive promotion for Mashable Readers.
Mashable Awards Gala VIP Lounge sponsor:
Influxis specializes in the deployment of creative streaming solutions. Services include large scale deployment, mobile streaming, turn-key applications, and enterprise support with custom network options. With the unique combination of a worldwide network, knowledgeable developer support and nearly a decade of streaming media experience, Influxis is an essential partner to businesses, advertisers, developers, educators, and others who seek expertise in innovative streaming.
Sponsorships are available. Please contact sponsorships@mashable.com for more information.
Image courtesy of DaddyDesign
For more Business coverage:
VA. Man Arrested For Plotting DC Attacks « Liveshots
A Virginia man has been arrested for allegedly trying to help Al Qaeda plan multiple.
Fantasy Football <b>News</b> Roundup, Week 8: Does Jon Kitna Have Value <b>...</b>
Checking in on the fantasy news of the day for Week 8.
Halloween Candy: The Not-So-Sweet <b>News</b> - Slashfood
Photo: mandaloo, Flickr No one is going to claim they eat Halloween candy because it's good for them. But the Daily Beast ran the numbers on.
property management atlanta ga
VA. Man Arrested For Plotting DC Attacks « Liveshots
A Virginia man has been arrested for allegedly trying to help Al Qaeda plan multiple.
Fantasy Football <b>News</b> Roundup, Week 8: Does Jon Kitna Have Value <b>...</b>
Checking in on the fantasy news of the day for Week 8.
Halloween Candy: The Not-So-Sweet <b>News</b> - Slashfood
Photo: mandaloo, Flickr No one is going to claim they eat Halloween candy because it's good for them. But the Daily Beast ran the numbers on.
A 401(k) plan has lots of fees, and savvy investors may be aware of various investment-related charges – such as a management fee to a mutual fund manager's or the sales commission paid when making a transaction.
What most people don't know, however, is that 401(k) plans also include several other hidden fees that can eat away at their investments.
These include so-called "12b-1 fees" (which are marketing fees passed along to investors) and administrative costs of various types imposed by retirement plan sponsors.
Finding these fees isn't easy. In fact, you have to pore over a fund's prospectus and an annual report to ferret out exactly what charges are imposed by a 401(k) retirement plan.
Perhaps this explains why, according to an AARP survey, more than 80% of retirement plan participants have no idea what their 401(k) charges. Even worse, some people mistakenly think that investing in their 401(k) plan on the job is "free" and that no fees are charged.
In reality, in 2009, 401(k) investors in stock funds paid an average expense of .74% of their assets, while the typical bond investor paid an average of .55%, according to a report from the Investment Company Institute.
Think small numbers don't make a big difference? Think again. A GAO report found that a typical retiree will lose about $100,000 when their 401(k) plan has fees of 1.5%, instead of .5% in fees. That's just a one percentage-point difference, but it has a huge impact.
Fortunately, there is some good news on this topic and change is soon coming. Under new guidelines issued by the U.S. Labor Department, by January 1, 2012 retirement plans will have to do a better job of clearly disclosing their fees and charges. Right now, disclosure is murky at best.
In the meantime, until disclosure improves, there is an easy way to see what your employer-sponsored retirement plan is costing you.
A company called BrightScope rolled out a free service in 2009 that will rate your 401(k) plan. BrightScope has analyzed 50,000 retirement plans, which represents about 90% of the $3 trillion held in 401(k) plans.
BrightScope offers a free analysis called a Personal 401(k) fee report. It's a tool that breaks down exactly how much you're paying to have that 401(k) – in terms of a fund's overall expenses, administrative charges, marketing fees and so on.
Based on BrightScope's data, fees are all over the board, ranging from as little as .20% to as much as 5%. Small plans typically charge more than large plans, mainly because the smaller plans can't achieve the same economies of scale.
Curious to know what fees you're paying to invest through your company's 401(k) plan? Visit BrightScope's site and find out in about three minutes.
As part of the ongoing Mashable Awards, we’re taking a closer look at each of the nomination categories. This is “Best Social Media Service for Small Business.” Be sure to nominate your favorites and join us for the Gala in Las Vegas! Sponsorships are available. Please contact sponsorships@mashable.com for more information.
Throughout the year we’ve spoken to many small business owners, asking them about their best practices, recommendations and success stories in the social media space.
Pulling from their experiences, we’ve learned that choosing social platforms should be based on what type of content your company produces, where your audience is already active, what your goals are, and how you plan to add value for your business’s followers.
While every social platform isn’t fit for all businesses, there are quite a few standout services that can be utilized throughout many industries. Here are our top picks for social media services for small businesses — many of these may not be surprising, but that’s because the success stories we’ve heard have proven them over and over again.
Which social media services do you recommend for small businesses? Add your thoughts in the comments below.
1. Communications Service: Twitter
When you ask business owners about their social media strategies, Facebook and Twitter are generally among the first words that come up. These two platforms have become the go-to, entry-level platforms for business owners looking to get more social.
For quick, effective communication, though, our vote goes to Twitter. The micro-blogging service enables businesses to quickly and effectively enhance customer service, business development, public relations and even lead generation. Through these types of communication, businesses humanize their brands, making them seem more friendly and approachable.
Not only that, unlike many other social sites, Twitter is easy to set up due to its minimalist approach. While setup and growing a following entails a bit of a learning curve for new users, maintaining a Twitter presence is simple once you’ve got it together. In short, Twitter is a big win for small businesses.
Also noteworthy: Facebook
2. Video-Sharing Service: YouTube
From speeches and tours to tutorials and documentaries, small businesses are using web video in a lot of creative ways — even CEOs are getting involved. Businesses are using a number of services, but our top pick for small businesses is still the video king, YouTube.
In November 2008, YouTube surpassed Yahoo as the second largest search engine in the U.S., only next to Google. It has maintained that spot ever since. While business owners may be able to benefit from better aesthetics and revenue models on other video-hosting sites, YouTube offers visibility, familiarity and a massive audience.
Also noteworthy: Vimeo, Blip.tv
3. Twitter Photo-Sharing Service: Twitpic
There are a lot of Twitter photo-sharing services to sift through, but the most popular one is TwitPic.
Photo-sharing on Twitter can be a great way to showcase products and give a behind-the-scenes look at your business. Really, you can’t go wrong with most of the Twitter photo-sharing services out there. The majority are easy to use, only require users to sign in via Twitter oAuth, and showcase photos in a timeline. TwitPic adds the extra value of being recognizable within your Twitter stream.
Also noteworthy: Plixi, yfrog
4. Location-Based Service: Foursquare
Social media adoption rates among small businesses have grown dramatically this year, and location-based services are high on the list of emerging platforms of interest. While there are a handful of quality location-based services out there, including the recently launched Facebook Places, we believe that Foursquare still offers the best small business experience.
In the coming year, SCVNGR may give Foursquare a run for its money because of its innovative approach to the space, but for now, Foursquare wears the crown for being accessible to both the biggest brands and the smallest companies.
Also noteworthy: SCVNGR, Gowalla
5. Blogging Platform: Tumblr
Corporate blogs are catching on with companies of all types and sizes. To build an excellent corporate blog, you need compelling content, dedicated writers and, of course, a blogging platform.
Tumblr makes blogging almost as easy as tweeting, and puts a heavier focus on the social aspects of blogging than most platforms. The interface is easy to use, there are a ton of great themes, and the re-blogging feature makes it easy for users to share content.
Also noteworthy: WordPress.com, Blogger, Posterous
6. Social Media Dashboard: TweetDeck
Dealing with multiple social media accounts across various platforms is a total downer, but luckily there are lots of social media management tools to help, and TweetDeck seems to be a top pick among small business owners that we’ve spoken to. It’s free and enables users to connect across Twitter, Facebook, MySpace, LinkedIn, Foursquare and Google Buzz.
The dashboard is clean, customizable and easy to use, allowing users to organize feeds, mentions, messages and searches across multiple columns.
Also noteworthy: HootSuite, Seesmic, CoTweet, Postling
7. Funding Platform: Kickstarter
For startups and small businesses looking for funding, we recommend Kickstarter, a service for crowd sourcing funds for “creative ideas and ambitious endeavors.”
Kickstarter operates on an all-or-nothing model. Project owners choose a goal and a deadline, and if the project isn’t fully funded when time expires, then no money changes hands.
Small businesses can benefit from such a site by starting projects for business goals of all sorts — the most successful projects on Kickstarter are often out-of-the-box undertakings, though, so get creative. One recent project, for example, has a goal of buying equipment to make sheep’s milk soap. The farmer already herds sheep but is looking to raise funds to pay for an expansion of her soap production business. The project has already attracted 16 backers to fulfill the $500 goal, and it still has a few weeks to go.
Also noteworthy: IndieGoGo, Invested.in
What’s Your Take?
Which social media services does your small business use and recommend? Let us know in the comments or nominate them for the Mashable Awards.
The Mashable Awards Gala at Cirque du Soleil Zumanity (Vegas)
In partnership with Cirque du Soleil, The Mashable Awards Gala event will bring together the winners and nominees, the Mashable community, partners, media, the marketing community, consumer electronics and technology brands and attendees from the 2011 International CES Convention to Las Vegas on Thursday, January 6, 2011. Together, we will celebrate the winners and the community of the Mashable Awards at the Cirque du Soleil Zumanity stage in the beautiful New York New York Hotel. The event will include acts and performances from our partner Cirque du Soleil Zumanity. In addition, there will be special guest presenters and appearances.
Date: Thursday, January 6th, 2011 (during International CES Convention week)
Thanks to our sponsors:
Mashable Awards Gala Partner:
From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil is now a global entertainment organization providing high-quality artistic entertainment. The company has over 5,000 employees, including more than 1,200 artists from close to 50 different countries.
Cirque du Soleil has brought wonder and delight to nearly 100 million spectators in 300 cities on five continents. In 2010 Cirque du Soleil, will present 21 shows simultaneously throughout the world, including seven in Las Vegas.
For more information about Cirque du Soleil, visit www.cirquedusoleil.com
Mashable Awards Online Partner:
Have you ever wished for your own personal gourmet Chef?
The Fresh Diet is like having a Cordon Bleu chef prepare your meals in your own kitchen. There’s no cooking, cleaning, shopping – just fresh prepared delicious meals, hand delivered to your door daily! Whether you want to lose weight or just want to eat healthy, The Fresh Diet can help you meet your goals. The best news, we’re giving away a FREE week of The Fresh Diet every day on our Facebook page. Just click here to become a fan and you could be the next winner. Join now!
Mashable Awards Partner:
Join us at the 2011 International CES®, the global platform for inspired ideas and innovation. With 2,500 exhibitors, CES continues to be the world’s largest consumer technology tradeshow and always reflects the dynamic consumer electronics industry. The International CES is not open to the general public and all attendees must be in the CE industry to be eligible to attend the show. Register FREE for the 2011 CES with priority code MSHB, an exclusive promotion for Mashable Readers.
Mashable Awards Gala VIP Lounge sponsor:
Influxis specializes in the deployment of creative streaming solutions. Services include large scale deployment, mobile streaming, turn-key applications, and enterprise support with custom network options. With the unique combination of a worldwide network, knowledgeable developer support and nearly a decade of streaming media experience, Influxis is an essential partner to businesses, advertisers, developers, educators, and others who seek expertise in innovative streaming.
Sponsorships are available. Please contact sponsorships@mashable.com for more information.
Image courtesy of DaddyDesign
For more Business coverage:
VA. Man Arrested For Plotting DC Attacks « Liveshots
A Virginia man has been arrested for allegedly trying to help Al Qaeda plan multiple.
Fantasy Football <b>News</b> Roundup, Week 8: Does Jon Kitna Have Value <b>...</b>
Checking in on the fantasy news of the day for Week 8.
Halloween Candy: The Not-So-Sweet <b>News</b> - Slashfood
Photo: mandaloo, Flickr No one is going to claim they eat Halloween candy because it's good for them. But the Daily Beast ran the numbers on.
VA. Man Arrested For Plotting DC Attacks « Liveshots
A Virginia man has been arrested for allegedly trying to help Al Qaeda plan multiple.
Fantasy Football <b>News</b> Roundup, Week 8: Does Jon Kitna Have Value <b>...</b>
Checking in on the fantasy news of the day for Week 8.
Halloween Candy: The Not-So-Sweet <b>News</b> - Slashfood
Photo: mandaloo, Flickr No one is going to claim they eat Halloween candy because it's good for them. But the Daily Beast ran the numbers on.
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