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It is very important for Topgolf Callaway Brands 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 Topgolf Callaway Brands 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 Topgolf Callaway Brands 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 Topgolf Callaway Brands 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 Topgolf Callaway Brands 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 Topgolf Callaway Brands 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 type of retirement savings plan does Topgolf Callaway Brands offer to its employees?
Topgolf Callaway Brands offers a 401(k) retirement savings plan to its employees.
How can employees of Topgolf Callaway Brands enroll in the 401(k) plan?
Employees of Topgolf Callaway Brands can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
Is there a company match for contributions made to the 401(k) plan at Topgolf Callaway Brands?
Yes, Topgolf Callaway Brands provides a company match for employee contributions to the 401(k) plan, subject to certain limits.
What is the minimum contribution percentage required for employees at Topgolf Callaway Brands to receive the company match?
Employees at Topgolf Callaway Brands typically need to contribute at least 3% of their salary to qualify for the company match.
Can employees of Topgolf Callaway Brands choose how their 401(k) contributions are invested?
Yes, employees of Topgolf Callaway Brands can select from a variety of investment options for their 401(k) contributions.
What is the vesting schedule for the company match in the 401(k) plan at Topgolf Callaway Brands?
The vesting schedule for the company match at Topgolf Callaway Brands generally follows a standard schedule, which may vary based on tenure.
Are there any fees associated with the 401(k) plan at Topgolf Callaway Brands?
Yes, there may be administrative fees associated with the 401(k) plan at Topgolf Callaway Brands, which are disclosed in the plan documents.
How often can employees at Topgolf Callaway Brands change their contribution amounts to the 401(k) plan?
Employees at Topgolf Callaway Brands can typically change their contribution amounts on a quarterly basis.
What happens to the 401(k) plan if an employee leaves Topgolf Callaway Brands?
If an employee leaves Topgolf Callaway Brands, they have several options for their 401(k) plan, including rolling it over to another retirement account or cashing it out.
Does Topgolf Callaway Brands offer educational resources about the 401(k) plan?
Yes, Topgolf Callaway Brands provides educational resources and workshops to help employees understand their 401(k) plan options.
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