IBM Computer, Laptops and Servers

401(k) retirement savings plans, it is likely the best place to save for retirement. 401K retirement savings plans are investing in low cost mutual funds. Stock funds paid an average expense ratio of 0.74% in 2006, well below asset-weighted average expense ratio of 0.88%. It means all workers and employers with 401 K retirement savings plans now can make extra saving 0.11%  on their retirement funds. If your company save 2,000 dollars each month for your retirement, the normal average cost of saving is 0.88% mutiply $ 2000 = $176. But now you can save extra (0.88% - 0.74%)*2000 = $2.2. So 30 years later, you get retired, that's a bulk of $20,000 to $30,000 extra retirement savings you can get.

For more information about the low cost retirement mutual funds: The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2006