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News Summary: Schwab touts 401(k) plan fee savings

(AP) - LOWER FEES: Schwab Retirement Plan Services says that employees who enrolled in an all-index fund 401(k) plan launched by the company about a year ago saw the expenses on their funds drop nearly 80 percent.

THE NUMBERS: Fund expenses for investors in the plan fell 77 percent to $14.78 per $10,000 invested. Prior to transitioning to an all-index fund approach, the weighted-average operating expense ratio on these investors' 401(k) plans was $65.11 per $10,000 invested.

HOW IT WORKS: Index funds seek to match the market by tracking an index. Their fees are lower than actively managed funds.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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