New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Investment Fees and 401(k) Plans LGI Homes

Healthcare Provider Update: Healthcare Provider for LGI Homes LGI Homes primarily partners with The Retirement Group, a division of Wealth Enhancement, to facilitate employee benefits and provide assistance related to healthcare coverage. Potential Healthcare Cost Increases in 2026 As LGI Homes prepares for 2026, employees should brace for significant increases in healthcare costs. With reports indicating that ACA marketplace premiums could rise dramatically-some states experiencing hikes over 60%-many employees may face higher out-of-pocket expenses. Additionally, employers, responding to mounting healthcare cost pressures, are likely to shift more expenses onto workers through increased deductibles and coinsurance rates. By familiarizing themselves with changing benefit structures and optimizing their health savings accounts, LGI Homes employees can mitigate the financial impact of these projected cost increases. Click here to learn more

It is very important for LGI Homes employees to know all the fees that are linked to their 401(k) plans to make sure they are not losing their retirement funds,” suggests Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group. “The decision on the fees is as significant as the decision on the investments themselves.”

'Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group, points out that knowing all the fees that are associated with 401(k) plans is a great way to protect the retirement assets of LGI Homes employees. He advises employees to find out more about the fees in order to better control their investments.

In this article, we will discuss:

1. Different Types of 401(k) Plan Fees: Note the three types of fees that are most common in 401(k) plans for LGI Homes employees – Sales Charges, Management Fees, and Other Fees.

2. Impact of Management Fees on Investments: Learn how management fees can change and how they can affect the potential for your retirement investments to grow.

3. Analogies to Enhance Understanding: A metaphor can be used to explain the idea of 401(k) investment fees which means the expenses incurred in the maintenance of a classic car in order to be able to grasp the notion of these fees in the management of your retirement plan.

Aside from fees charged for administration of the plan, there are three basic types of fees that LGI Homes employees may have to pay in connection with their 401(k) plan investment options. These fees, which have a variety of names, include Sales Charge, Management Fees, and Other Fees. 'Highly actively managed investment products will have higher fees because they require substantial management, research, and monitoring.'

Sales Charges Also referred to as commissions or load fees. These are the transaction fees that apply to LGI Homes employees in the course of buying and selling shares. Depending on the particular investment product, they may be computed in a variety of methods. Management Fees Popular names include investment advisory fees, account service fees, or similar names. These are continuous expenses for managing the investment fund's assets.

They are typically expressed as a percentage of the fund's invested assets. Sometimes, management fees are used to cover administrative costs. The levels of management fees can vary depending on the investment manager and investment product. Higher-level management, research, and monitoring requirements usually lead to higher fees on investment products. Other Fees This category includes services involved in the day-to-day administration of investment products, such as recordkeeping, statement distribution, toll-free telephone numbers, and investment advice.

They may be expressed either as a fixed fee or as a percentage of the fund's total assets. It is crucial for a LGI Homes employee to know the different fees that are incurred and how they are charged to avoid paying more than is necessary and being charged more than is necessary. For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/the-401k-plan-fees-e-brochure.

Added Fact:

New data reveals that for 60-year-old individuals, it is important to take fees into account when planning for retirement for their 401(k) plans. According to a study conducted by the Center for Retirement Research at Boston College, even an apparently small amount of fee can have a major impact on the retirement assets. Specifically, the study found that a 1% difference in annual fees could lead to a 28% decline in the value of the retirement assets over a 35-year period. This is important because it highlights the need to understand and compare investment fees in order to achieve the maximum growth of a 401(k) plan.

Added Analogy:

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401(k) plan investment fees can be compared to the cost of maintaining a classic car. Just like a classic automobile, your retirement savings are something that you want to care for and protect. The sales charges are the price that you pay to purchase the vehicle just like the transaction costs incurs in the buying and selling of investment shares. The management fees, which are the costs of servicing and tuning a car, guarantee that your investment funds are well handled and watched over to enhance their performance. Meanwhile, the other fees, such as recordkeeping and administrative costs, are something that can be compared to the normal wear and tear and repair costs that come with owning a classic car. You will be able to consider yourself as an expert car enthusiast who knows how to look after their vehicle and make sure that it lasts and has the best value. As with any classic car, there are costs associated with your 401(k) investments and fees are something that should not be taken lightly in order to reach your retirement goals.

Sources:

1. 'Understanding Your Retirement Plan Fees.' U.S. Department of Labor , www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/a-look-at-401k-plan-fees . Accessed 8 Feb. 2025.

2. '401(k) Fees: Everything You Need to Know.' Investopedia , edited by Caleb Silver, Investopedia, www.investopedia.com/articles/personal-finance/061913/understand-your-401k-fees.asp . Accessed 8 Feb. 2025.

3. Boswell, Brian. 'Understanding Your 401(k) Fees: What’s Normal and Ways to Minimize.' Savvywealth , 13 Jan. 2025, www.savvywealth.com/understanding-your-401k-fees . Accessed 8 Feb. 2025.

4. 'How to Understand and Analyze 401(k) Fees.' GoBankingRates , GoBankingRates.com, www.gobankingrates.com/retirement/401k/common-401k-fees-chipping-away-retirement-savings/ . Accessed 8 Feb. 2025.

5. 'Understanding the Fees in Your 401(k) Plan.' AARP , AARP, assets.aarp.org/www.aarp.org_/articles/money/employerpensions/401k_fees.pdf. Accessed 8 Feb. 2025.

6. Center for Retirement Research at Boston College, 'The Impact of Expense Ratios on Retirement Wealth,' April 2022)

What is the 401(k) plan offered by LGI Homes?

The 401(k) plan at LGI Homes is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does LGI Homes match employee contributions to the 401(k) plan?

LGI Homes offers a company match on employee contributions, which helps to enhance your retirement savings.

When can I enroll in the 401(k) plan at LGI Homes?

Employees at LGI Homes can enroll in the 401(k) plan during their initial onboarding process or during the annual open enrollment period.

What is the vesting schedule for LGI Homes' 401(k) match?

The vesting schedule for LGI Homes' 401(k) match typically requires employees to work for a certain number of years before they fully own the matched funds.

Can I change my contribution amount to the LGI Homes 401(k) plan?

Yes, employees can change their contribution amount to the LGI Homes 401(k) plan at any time, subject to plan rules.

What investment options are available in the LGI Homes 401(k) plan?

The LGI Homes 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

Is there a loan option available through the LGI Homes 401(k) plan?

Yes, LGI Homes allows employees to take loans against their 401(k) balance under certain conditions.

How can I access my LGI Homes 401(k) account information?

Employees can access their LGI Homes 401(k) account information online through the plan’s designated website or mobile app.

What happens to my LGI Homes 401(k) if I leave the company?

If you leave LGI Homes, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it with LGI Homes.

Does LGI Homes offer financial planning resources for 401(k) participants?

Yes, LGI Homes provides access to financial planning resources and tools to help employees make informed decisions about their 401(k) investments.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Review Company Pension Plan Information: Search for LGI Homes' pension plan details, including: Name of the pension plan Eligibility requirements (years of service, age) Pension formula Specific page numbers in the document where the information is found Review Company 401(k) Plan Information: Search for LGI Homes' 401(k) plan details, including: Name of the 401(k) plan Eligibility requirements Specific page numbers in the document where the information is found Gather Terminology and Acronyms: Collect any specific terminology and acronyms related to LGI Homes' employee pension and 401(k) plans. Ensure No Hyperlinks:

Restructuring and Layoffs: LGI Homes has been adjusting its operational structure in response to fluctuating market conditions. In late 2023, the company undertook a series of organizational changes aimed at streamlining its operations and improving efficiency. This included some layoffs within certain departments. This restructuring is a direct response to the ongoing economic uncertainties, including shifts in the housing market and broader economic conditions that impact homebuilders. As such, it is crucial for stakeholders to stay informed about these changes to better understand their potential impact on investment and employment stability. Company Benefits and 401k Changes: In early 2024, LGI Homes revised its employee benefits package to address the changing needs of its workforce. This included adjustments to its 401k plan, such as modified employer matching contributions and updated investment options. The changes are designed to enhance employee financial security amidst economic fluctuations. It is essential to follow these updates, as they reflect broader trends in corporate benefits adjustments influenced by the current economic and political environment, affecting employees' long-term financial planning and security.

LGI Homes provided stock options and RSUs to key employees, including executives and senior management. These options and units are typically granted as part of the company's long-term incentive plans to align interests with shareholders. The stock options and RSUs available in LGI Homes for 2022 were detailed in the annual proxy statement filed with the SEC.

LGI Homes has offered a range of healthcare benefits over recent years, with a focus on comprehensive coverage to support employee well-being. In 2022 and 2023, LGI Homes' health benefits included traditional medical insurance plans, dental and vision coverage, and access to health savings accounts (HSAs). The company uses terms like "HDHP" (High Deductible Health Plan) and "HSA" (Health Savings Account) to describe their benefit options. In 2024, LGI Homes continued to provide competitive healthcare benefits, emphasizing wellness programs and preventive care. Recent changes included adjustments to the cost-sharing structure and enhancements to telehealth services, reflecting broader trends in the industry toward digital healthcare solutions. The company also expanded its mental health resources, acknowledging the growing importance of mental well-being in the workplace. In the current economic and political climate, discussions around healthcare benefits at LGI Homes are particularly relevant. With ongoing economic pressures and legislative changes affecting healthcare policies, LGI Homes' approach to employee benefits remains crucial for both retaining talent and ensuring financial stability. Healthcare benefits are not just a matter of employee satisfaction but also a strategic consideration for investment and tax planning. By adapting their benefits to meet current needs and legislative changes, LGI Homes positions itself as a competitive employer and demonstrates a commitment to its workforce's health and financial security.