I have always had a pretty angry relationship with my 401(k). On the one hand, I get a match of 100% up to 6% of my salary provided by the generous boss-men (anyone know why this is very common?), on the other hand my fund choices are terribly expensive. I largely ignore the account only updating it once or twice in the past couple years.
My 401(k) Over Charges me For Cash
While I always knew my 401(k) was expensive in terms of fees, it became much more apparent when readers discussed reallocating and rebalancing my 401(k) with me a few months back. But, time passes and I forgot how much I disliked the account…until last night.
I don’t like writing about my feelings regarding the market, so I don’t do it that often but it is needed for this post. Every other day we hit a new all-time high for some of the indexes. This makes mee feel like at some point the big money will take profits off the table causing a slight correction. I am not saying a 20% correction but one big enough I would like to avoid.
As such, I pulled up my funds lists to see what options I could use to actually put my money where my mouth (er brain) is. Argh not one short or contrarian fund.
So fine…I will put future contributions in cash for a little bit and then jump back in the market when the market corrects saving me a few percentage points.
That’s when I notice that the freaking cash account has a .95% expense associated with it! You are going charge me to hold my cash? And charge me a boat load at at that!?