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Josh Bittker@jbittker.bsky.social |
A story of how the obvious financial decision is the wrong one: Teenage kid had a summer job which offered 401k and a match. Great, obviously sign up and start saving young! Now he’s in college so we’re trying to roll over to an IRA. But account custodian, ADP, charges $55 to close the account!
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Josh Bittker
@jbittker.bsky.social
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Even with the match, tax savings, and ROI, he lost money versus not contributing at all. I also suspect there’s been monthly maintenance fees since he left the job. The lesson: flat fees overwhelm percentage gains that are supposedly incentives to invest when you have a small or part-time income.
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