FINANCIALLY FOCUSED

October 2025 Newsletter

401(k) FEES: THE HIDDEN COSTS TO BE AWARE OF

If you have a 401(k), or if you’ve left one behind when changing jobs, fees are something you shouldn’t ignore. They may not sound exciting, but according to a recent USA Today article, Changing jobs? How to protect your 401(k) from hidden fees, these small charges can quietly reduce your retirement savings over time.

WHY FEES MATTER

Every 401(k) plan comes with fees. That’s unavoidable. What surprises many people is how those fees can change when you leave an employer. While you’re on the payroll, your company may cover certain administrative costs. But once you walk out the door, those costs often shift back to you.

At first, a small expense like as a monthly “maintenance fee,” may not seem like much. But over time, recurring charges may make a real difference. Unlike market fluctuations, fees are consistent: they don’t pause when your investments perform well. Instead, they may quietly reduce your balance, month after month, year after year.

HOW TO FIND THEM

The tricky part is that fees are rarely obvious. There’s no flashing warning sign. By law, every plan must provide a disclosure statement, often called a 404(a)(5) fee disclosure, though it might go by another name. The challenge is that these documents may not be easily located.

If you’re not sure where to look, ask your HR department or plan administrator. Once you get the disclosure, you’ll likely see charges with names like:

• Transaction fees
• Investment management fees
• Mutual fund expense ratios
• Administrative fees
• Individual service fees

Sometimes you’ll even find more technical-sounding charges such as “sub-transfer agent fees” or “distribution costs.”

The bottom line is that if it sounds like a fee, it probably is.

STRATEGIES TO REDUCE COSTS

The good news is that while you can’t eliminate fees entirely, you can take appropriate steps to minimize them:

1. Look for lower-cost funds. If a fund’s expense ratio is higher than 0.50%, consider asking whether it really belongs in your portfolio.
2. Consider index funds or target-date funds. These tend to be cheaper than actively managed funds and may be appropriate long-term choices.
3. Use comparison tools. Complimentary online resources can show how your plan stacks up against others.
4. Ask HR for help. They may be able to point you to lower-cost options within your plan.
5. Review old accounts. If you still have a 401(k) with a past employer, consider all of your options and whether rolling it into an IRA for more flexibility and potentially lower costs is appropriate for you.

WHAT RETIREES SHOULD KNOW

Fees may look small on paper, but long-term can be significant. Knowing what you’re paying, understanding your options, and taking action to minimize costs can mean more in your retirement account.

The takeaway is simple: don’t assume your plan is fee-free. Get your fee schedule, learn how to read it, and make intentional choices. Every dollar saved on fees is one more dollar working toward your future.

SOURCE

https://www.usatoday.com/story/money/2025/08/17/hidden-401k-fees-when-change-jobs/85437256007/

WHAT WE’RE READING

School’s back in session, the leaves are beginning their turn from green to reds and yellows, and its officially pumpkin spice season! Here are some of our favorite recent financial news articles to read while you enjoy your favorite fall beverage:

• A USA Today article, The 4% rule is now the 4.7% rule. That matters for your retirement, explains that some financial services professionals are recommending that retirees spend 4.7% annually during retirement, rather than the 4% that’s been the norm for many years.
• An eye-opening article from Kiplinger, Five Wealth-Building Moves You Can Make in Retirement, that describes how building your nest egg doesn’t have to stop once you’ve said goodbye to your career.
• An article from MoneyWatch, 3 ways you can lose your Social Security benefits, that serves as a good reminder that Social Security doesn’t just happen, it requires a thoughtful strategy that understands the program’s rules and nuances.
• If you’re looking for a refresher on the ins and outs of IRA rules, a U.S. News and World Report article, IRA Rules: Contributions, Deductions, Withdrawals, is a place to start.

A DENTIST INVENTED COTTON CANDY

One might think it should be the other way around…but, in 1897, a dentist and a confectioner teamed up to create Cotton Candy. William Morrison, the dentist behind this sugary treat, hoped the new candy would drum up some extra cavity related business. He sought out confectioner John C. Warton, and they devised a machine that turned sugar into cotton strands. Although the candy originally was named Fairy Floss, it was not until the 1920’s when the name Cotton Candy was adopted.

SOURCE

https://www.mentalfloss.com/article/507656/50-sweet-facts-about-your-favorite-halloween-candies

GHOST S'MORES DIP

This s'mores-inspired dip is the perfect dessert to throw together for a last-minute Halloween bash! In just 15 minutes, you'll have a melty, chocolatey, dreamy s'mores dip that is downright scary good. Graham crackers make for perfect dippers, but sliced apple, pretzels, or potato chips would certainly do the trick too.

Let's Get Baking!

Jeffrey Bird, Ronald Bird and Andrew Bird offer Investment Advisory Services through Gradient Advisors, LLC (Arden Hills, MN 877-885-0508), an SEC Registered Investment Advisor. Gradient Advisors, LLC and its advisors do not render tax, legal, or accounting advice. Financial Concepts, Inc is not a registered investment advisor and is independent of Gradient Advisors, LLC. Insurance products and services are offered through Jeffrey Bird, Ronald Bird and Andrew Bird, independent agents.

This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, retain, copy, or disseminate this memo or any part of it. If you have received this memo in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT Act, and similar laws, any communication in this e-mail is subject to regulatory, supervisory, and law enforcement review.

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