Professionally managed accounts within 401(k)s are having a moment. As of the end of 2024, nearly all participants in Vanguard plans had access to target-date funds, and almost 80% had access to accounts that financial advisers managed. But that advice comes at a cost.
Retirement savers pay annual fees of between 0.4% and 0.6% of the account balance, on average, for a managed account. That’s on top of the underlying expenses of the fund.
