Top of Mind

Don’t Pay Full Price!

Thanks to the wonders of modern technology, you really don’t have to pay full price for much of anything nowadays. And no, I am not talking about sales where you often buy too much of what you don’t need (or sometimes, even want!) There are apps, web extensions and whatnot that will save you money on things you already buy, from groceries to cell/smartphone service and everything in between.

Don’t believe me? Just check out the universe of Financial Independence/Retire Early (FIRE) bloggers (J. Money is one of my favorites, but there are many others out there, some of whom J. Money links to as well), and chances are they have links to several tools that will save you money. I can tell you from personal experience that a lot of these sites are quite effective! Moreover, most are surprisingly easy to use; even my wife, who is admittedly not a fan of apps, would never go back to the days when she was paying full price for anything.

With that being said, a number of forward-thinking retirement plan sponsors have begun to educate plan participants about the existence of these tools. Why? Because one of the biggest barriers to retirement savings is affordability. If you can save people hundreds of dollars a month on things they already buy, suddenly saving for retirement becomes a lot easier!

Plan sponsors, of course, should practice what they preach to employees in this regard, by not paying full price for services such as recordkeeping. If it has been more than a year since you’ve reviewed your plan fees, there’s a good chance that you’re paying too much, especially in the current fiercely-competitive environment for recordkeeping services.

Additionally, plan sponsors should be continuously monitoring share-class eligibility to ensure that they are obtaining the absolute cheapest share class of a fund given their asset size.

What are your views on thinking outside the box in educating participants on subjects such as not paying full price to increase retirement plan engagement? As always feel free to reach out to me on Twitter or at

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.

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