It's not much of a surprise, but it's also an opportunity for Obama and the Democrats to score a win. With Americans still angry about Wall Street profiting from their self-created failures, this could be a great way to reward the US public. Retirement account fees are all over the place but more often than not, excessive. Congress really needs to step in and do something that is fair for the public. (Go to www.brightscope.com for research into your own 401K plan.)
Last week, the Court reinforced an industry standard regarding "excessive" mutual fund fees from the 1980s. Some shareholder advocates say this ruling spark a new legal battle, including more litigation from investors who claim fund fees are too high.
Indeed, mutual fund and 401(k) fees can make a huge difference in your long term returns. A recent Charles Schwab study on 401(k) plans found 35 percent of employers are opting their employees into company retirement plans. But are they a good deal? Fee differences of just 1 percent can cut returns by 17 percent over a 20-year period, according to one government study.
