09/10/2026
Your 401(k) is set up so Wall Street gets paid whether you win or lose.
Here is how it works.
Most 401(k) plans charge around 0.5-1% of your account balance every single year, just to manage your money.
Let's use 1% to make the math easy.
That 1% comes off whether your account goes up 20% or drops 20% in a bad year. Win or lose, they get paid.
Most people look at that and think, it is only 1%. That is nothing.
Here is why that doesn't align with the math.
Say you have $100,000 in your 401(k), growing at 7% a year for 30 years.
With no fee, that grows to about $761,000.
With a 1% fee eating into your growth every year, that same $100,000 only grows to about $574,000.
Same money.
Same 30 years.
Same market performance.
The difference is $186,000.
You won't see it as a line item on your statement.
It is just money you never got to make in the first place.
Multiply that across every 401(k) in America, and you start to understand why Wall Street loves this system so much.
Your 401k works for Wall Street. Not for you.
*This is a hypothetical illustration using annual compounding and does not account for taxes, plan specific fee structures, or changes in returns. Not financial advice. Consult a qualified financial advisor before making any investment or tax decisions
Zachary Richards
Co-Founder, REI Capital Guys
Is your 401(k) working harder for Wall Street than it is for you? Join our community of active investors to learn how to break free from high fees and grow your capital: reicapitalguyscommunity.com
