Hard to say from what you shared, but sounds to me like your employer is having the 401k pass along administrative fees to employees. This would usually be paid by the employer at a more generous employer.
0.05 is likely a fixed fee across your plan assets regardless what fund you select, and IN ADDITION to the fund’s underlying expense ratios that vary per fund.
Underlying funds often have contractually allowed fees (gross) but temporarily discounted fees (net). There should be a date of when the discount ends, though often when the date comes, the discount is often extended. This should he disclosed on fund literature under the fees info.
https://www.viewjhfunds.com/usa/C00/inda/
“The Net expense ratio shown is for the underlying fund and reflects any fee waivers or expense reimbursements and is subject to change”
“Please call 800-395-1113 to obtain the Fund Sheet for the group annuity investment option sub-accounts and/or to obtain a prospectus (or Offering Memorandum/Trust Document) for the sub-accounts' underlying fund, that are available on request. The prospectuses (or Offering Memorandum/Trust Documents) for the sub-accounts’ underlying funds contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the underlying funds which should be carefully considered before investing.”
Any employer using John Hancock is not doing best by their employees. The expense for an sp500 fund is higher at any of these insurance company run 401k plans. The admin fee being passed through is a choice your employer made. Does your employer at least offer matching ?
0.05 is likely a fixed fee across your plan assets regardless what fund you select, and IN ADDITION to the fund’s underlying expense ratios that vary per fund.
Underlying funds often have contractually allowed fees (gross) but temporarily discounted fees (net). There should be a date of when the discount ends, though often when the date comes, the discount is often extended. This should he disclosed on fund literature under the fees info.
https://www.viewjhfunds.com/usa/C00/inda/
“The Net expense ratio shown is for the underlying fund and reflects any fee waivers or expense reimbursements and is subject to change”
“Please call 800-395-1113 to obtain the Fund Sheet for the group annuity investment option sub-accounts and/or to obtain a prospectus (or Offering Memorandum/Trust Document) for the sub-accounts' underlying fund, that are available on request. The prospectuses (or Offering Memorandum/Trust Documents) for the sub-accounts’ underlying funds contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the underlying funds which should be carefully considered before investing.”
Any employer using John Hancock is not doing best by their employees. The expense for an sp500 fund is higher at any of these insurance company run 401k plans. The admin fee being passed through is a choice your employer made. Does your employer at least offer matching ?
Statistics: Posted by beyou — Thu May 02, 2024 7:00 am — Replies 8 — Views 655