Break from the Grind February 25, 2019

TRIVIAL PURSUITS: Who Invented Sweatpants?

There is debate now about how acceptable it is to wear sweatpants as every day fashion, but how did this comfy clothing get its start?
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Who invented sweatpants?

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The first pair of sweatpants were made in the 1920s by the founder of a sports store in France—Le Coq Sportif—Emile Camuset.

Camuset saw them as much-needed comfortable sportswear for athletes of the day. The simple gray sweatpants were named for their ability to absorb sweat.

Over the years, athletes have worn them to work out or to stay warm before events. They were popular among Olympic athletes from many countries, and NASA astronauts trained in them.

They remained mostly sportswear until the 1980s when more leisure attire became fashionable.
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Data and Research February 25, 2019

401(k) Plan Costs Continue to Decrease

While total plan costs have declined for most plan sizes, the latest 401k Averages Book continues to show smaller plans pay higher fees than large plans.

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The 401k Averages Book 19th Edition shows the average total plan cost for a small retirement plan (100 participants/$5,000,000 assets) declined from 1.25% to 1.24% over the past year, while the average total plan cost for a large retirement plan (1,000 participants/$50,000,000 assets) declined from 0.95% to 0.93%.

According to the data, investment fees continue to decline. All scenarios (expect one) saw a year-over-year decrease in total investment costs of between 0.01% and 0.03%. Larger plans experienced greater decreases. In addition, total 401(k) plan costs declined for most plans sizes. Nineteen of 24 scenarios saw a decrease in total plan costs from last year, while the other five remained unchanged.

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The 401k Averages Book also shows smaller plans pay higher fees than large plans. A small plan with $5,000,000 in assets costs 1.24%, while a plan with $50,000,000 in assets costs 0.93%. The amount of revenue sharing paid by a plan is also impacted by its size. Average revenue sharing, which can be used to pay for recordkeeping or adviser compensation, can be as high as 1.19% for the smallest plans and as low as 0.16% for larger plans.

The data shows a wide range between high- and low-cost providers. The range of cost is greatest within the small plan market. The range of a plan with $1,000,000 in assets and 100 participants ($10,000 average account balance) is 0.72% to 2.81%.

“Overall fee disclosure and greater transparency has helped drive down 401(k) fees,” says Joseph Valletta, author of the 401k Averages Book. “But what we continue to find is large plans, with larger average account balances, pay less than smaller plans.” 

Published since 1995, the 401k Averages Book provides non-biased, comparative 401(k) average cost information, designed to help retirement plan sponsors and advisers benchmark 401(k) plan costs. The 19th Edition of the 401k Averages Book is available for $95 and can be purchased by calling (888) 401-3089 or going online at www.401ksource.com.

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