Eliminating Hidden Fees and Saving His Retirement
Eliminating Hidden Fees and Saving His Retirement
The Challenge
Daniel, a CalPERS member working in transportation services, contributed faithfully to a 403(b) for 12 years. Yet his balance seemed far too low.
After reviewing his statements, he realized he didn’t understand:
- Why performance looked weak
- What “M&E fee,” “surrender schedule,” or “administrative charge” meant
- How much money he was truly losing
He suspected something was wrong, but didn’t know what questions to ask.
The Process
I conducted a full 403(b) contract audit and uncovered:
- A 2.5% annual fee draining his account
- A long surrender fee schedule
- A high-commission product that wasn’t aligned with his goals
I broke down each fee in simple terms and compared his plan to several lower-cost alternatives.
We projected the difference over 15 years—and the gap was massive.
The Results
Daniel moved to a more efficient retirement strategy and avoided future surrender penalties by timing the transition carefully.
Over the next 15 years, projected savings totaled more than $78,000—purely from reducing unnecessary fees.
His account finally began growing at the rate he expected, and he gained full clarity on how his investments worked.
Key Takeaways
- High-fee 403(b) plans are extremely common in schools.
- Without transparency, educators unknowingly lose thousands.
- A simple review can significantly improve long-term growth.
- You should never stay in a plan just because “HR said it’s fine.”
403(b) Confusion? You’re not alone.
Book your free, jargon-free retirement review.