Cloudy

46°F

Shelton, WA

Cloudy
Humidity: 89%
  • Belfair Sewer System – 20 Year Payoff Plan

    Neatherlin RandyCommission Neatherlin proposes a solution to pay off the notorious Belfair Sewer System, a system estimated to go broke by 2017 under the current financing assumptions. At Tuesday's briefing session, Commissioner Neatherlin with the aid of Budget Director Frank Pinter presented a recommended solution utilizing REET 1 & 2 Funds,… Read More +

  • 1
  • Thurston County To Swear In New Elected Officials

    thurstonc logoThurston County Auditor Mary Hall will swear in 11 new elected officials at a free public ceremony. Congressman Denny Heck will deliver the keynote address. The event takes place on Tuesday, December 30, 2PM - 3PM at the Kenneth J. Minnaert Center for the Arts, located at South Puget Sound… Read More +

  • 1
  • Mariners Acquire Justin Ruggiano

    RuggianoRHP Matt Brazis sent to Cubs in trade. RHP Logan Bawcom designated for assignment.SEATTLE, Wash. – Seattle Mariners Executive Vice President & General Manager of Baseball Operations Jack Zduriencik announced today the club has acquired outfielder Justin Ruggiano from the Chicago Cubs in exchange for minor league relief pitcher Matt Brazis. Ruggiano, 32, played 81 games with the Chicago Cubs last season,

    Read More
  • 1

Five Tips on How to Choose the Best Retirement Fund

b_250_0_16777215_00_images_obgrabber_2013-09_edc5789912.jpgRosemary Calvert/Photographer's Choice RF (NEW YORK) -- Graeme Gibson, a small-business owner in Seattle, recently started saving for his family’s retirement, but he and his wife, Kate Gibson, admitted that they have no idea whether or not their retirement plan is getting the most bang for its buck. When Graeme gets his account statement, he doesn’t understand all the verbiage and is unsure how much he’s being charged in fees, he told ABC News. 

Like many Americans, the Gibsons did not know where to look for answers to their questions.

ABC News brought in Joanna Pratt, president of investing at NerdWallet.com, to help.  After Pratt looked at Gibson’s plan, she said it was, indeed, in need of a major adjustment.

In the end, if he switches providers and reduces fees to less than 1 percent, Gibson could save $500,000 in fees over the course of his career.

“I think we’re both really surprised at the amount,” Graeme said.  “The $500,000 is more than I think we even thought we’d end up saving.”

Here are some tips from NerdWallet.com’s Pratt:

1. Find what fees you’re paying by looking for these two key phrases: administrative expenses and expense ratio.  If you dig way back in the prospectus and look at the expense ratio, you’ll see numbers like 1.6, 1.8, or 1.4.  That is the percentage of your assets that 401(k) providers will take from you yearly.

2. Use PersonalCapital.com and NerdWallet.com to compare fees and find out how much you’re being charged in the long term.  Even with fee-free plans, you might find hidden expenses -- such as commissions -- and they can be expensive.

Gibson was paying upward of 1.8 percent yearly.  Pratt said if you’re looking at the expense ratio and it says 1 point anything, you’re paying too much and should talk to your 401(k) administrator.

These are the questions you should ask:

  • What fees you are paying?
  • How much goes to you?
  • How much goes to the 401k administrator?
  • How much goes to the fund?

While the answers to these questions are in the fine print, there is so much fine print.  It’s best to get somebody you trust and ask them.

3. Switch 401(k) providers.  Because Gibson’s 401(k) provider charged fees that would cost his family $541,000 by the time he retired, Pratt recommended he and his wife switch to a lower cost provider.

4. Contribute to an IRA.  Pratt also recommended that if Gibson can’t switch 401(k) providers, he should consider contributing only enough to get the employer match and then contribute to an IRA.  This small change could save him $100,000 during the course of his career.

5. Choose better funds. Gibson’s choice of mutual funds was disproportionately in foreign funds, which is unnecessarily risky.  Because foreign markets have underperformed the U.S. market recently, this mistake had cost him approximately $429 per year.  Pratt advised Gibson to change his allocation to better fit his age and risk tolerance.

Copyright 2013 ABC News Radio

  1. Environment
  2. Recreation

Tweets

maiabellon
maiabellon - We can make a difference for future generations if we reduce carbon pollution. Together we can make the air cleaner for all. #actonclimate

Retweeted 5 hours ago

SnoCoSheriff
SnoCoSheriff - We will have no fingerprinting services TODAY from NOON– 5 PM due to a systems upgrade. We apologize for any inconvenience.

5 hours ago

waEMD
waEMD - Taking a look at the Indian #Tsunami10years later via @NOAAResearch Seattle scientist looks at better forecast models 1.usa.gov/16tyPFm

5 hours ago

wsdot
wsdot - iPhone and Android apps aren't updating with latest data. Techs are aware and are working on it. Thanks for your patience.

5 hours ago

Public Notices