Home > In the News
> The Business of Saving
The Business of Savings
Why selecting low-expense funds for your 401(k) plan matters
People want high returns on their investments, who wouldn’t? Earning more can mean greater financial freedom and a faster way to retirement. But picking funds is hard. Often people will look at last year’s successful funds or review fund ratings as way to help make their picks. Unfortunately, yesterday’s winners are often tomorrow’s losers.
So what one thing can make a difference in helping you select the right funds? All else being equal, the one thing you can control is cost. When evaluating investments, you will want to know how much you will pay in fund expenses.
Historically, low-expense funds tend to fare better than high-expense funds. No matter if you look at Morningstar or other “unbiased” analysis, low-expense funds have held the advantage over time. It’s why ShareBuilder 401k offers something rare in the 401(k) industry: an all index-based fund line-up. Our goal is to keep your expenses as low as possible to help your money work harder as you build for retirement.