401(k) Fees: The Hidden Costs You Might Be Missing

Welcome to this month’s edition of Financially Focused, where we share timely financial insights, trending articles, and even a sweet recipe to try at home. Let’s dive into the highlights for October 2025.

🏦 401(k) Fees: The Hidden Costs to Be Aware Of

If you have a 401(k) — or if you’ve left one behind at a previous job — fees are something you shouldn’t ignore. They might sound minor, but according to a recent USA Today article, these small charges can quietly reduce your retirement savings over time.

Why Fees Matter

Every 401(k) plan includes fees. While employed, your company may cover certain administrative costs. Once you leave, those expenses often shift to you. A seemingly small monthly maintenance fee can add up significantly over time — consistently chipping away at your balance regardless of market performance.

How to Find Them

Fee details can be hard to spot. Plans are required by law to provide a disclosure statement (often labeled 404(a)(5) Fee Disclosure), though locating it may not be easy. Look for charges such as:

• Transaction fees

• Investment management fees

• Mutual fund expense ratios

• Administrative or service fees

• Sub-transfer agent or distribution costs

If it sounds like a fee, it probably is.

Strategies to Reduce Costs

You can’t eliminate fees completely, but you can minimize them:

1. Compare fund expenses – Seek lower-cost options (ideally with expense ratios below 0.50%).

2. Consider index or target-date funds – These often carry lower fees and fit long-term portfolios.

3. Use online comparison tools – Benchmark your plan’s fees against others.

4. Ask HR for guidance – They may offer access to less costly investment options.

5. Review old accounts – Consolidating past 401(k)s into an IRA may offer more flexibility and lower fees.

What Retirees Should Know

Even small fees compound over decades. Understanding and managing them could mean more money working toward your future.

Read the full article on USA Today ›

📚 What We’ve Been Reading

School’s back in session, the leaves are changing, and pumpkin spice season is in full swing! Here are a few standout articles to read while you sip your favorite fall beverage:

• The 4% Rule Is Now the 4.7% Rule – Why experts are revising the classic retirement withdrawal guideline. (USA Today)

• Five Wealth-Building Moves You Can Make in Retirement – Smart strategies to keep your nest egg growing. (Kiplinger)

• 3 Ways You Can Lose Your Social Security Benefits – A reminder that understanding the system’s rules is key. (MoneyWatch)

• IRA Rules: Contributions, Deductions, Withdrawals – A refresher on the ins and outs of IRAs. (U.S. News & World Report)

💡 Fun Fact: A Dentist Invented Cotton Candy

It may sound ironic, but back in 1897, a dentist named William Morrison partnered with confectioner John C. Warton to create what we now call cotton candy. Originally dubbed Fairy Floss, the name changed to Cotton Candy in the 1920s. Morrison’s sweet invention wasn’t just tasty — it also happened to boost his dental business!
Learn more › Mental Floss

🎃 Recipe of the Month: Ghost S’mores Dip

A fun, spooky twist on a classic treat — perfect for Halloween gatherings or cozy nights in.

Ingredients

• 1 bag ghost marshmallows (or 4 packages ghost Peeps)

• 2 cups semi-sweet chocolate chips

• ¼ cup heavy cream

• Mini chocolate chips (for eyes and mouths)

• Warmed graham crackers, for serving

Directions

1. Preheat oven to 450°F.

2. In a 9” oven-safe skillet or dish, spread chocolate chips and pour cream on top.

3. Cover completely with ghost marshmallows.

4. Add mini chocolate chips for eyes and mouths.

5. Bake 8–10 minutes, until golden and melted.

6. Serve warm with graham crackers for dipping.

Get the full recipe on Delish ›