Finance Education

Fundamentals of Market Investing by Adam J. McKee

Employers that sponsor a 401(k) plan are now required to provide information about the fees and expenses deducted from participant accounts.  However, only half (53%) of 401(k) plan participants report having noticed this information, and just 7% say they have made changes to their investments as a result of the new fee information.  Minimizing fees will help your account balance to grow faster, potentially resulting in thousands upon thousands of extra dollars at retirement.

A major cause of the mess we find ourselves in is what we simply do not know what is going on, but we have not realized it is a problem.  Exponential-growth bias (EGB) is a perceptual bias whereby people underestimate exponential growth due to neglecting compound interest.

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