Anyone with a 401(k) retirement plan has been painfully aware of the gyrations in the stock market in recent years. The market has come back up lately, but the economy is still in low gear, so many analysts aren't too bullish in the short term. Also, treasuries and CDs are offering tiny returns.

So what's the average American trying to save for retirement to do? Answers are percolating at an annual economics retreat in Maine.

Every year in August, some of the nation's top economists, money managers and some Federal Reserve officials gather in the woods up near the Canadian border. They do some fly-fishing, they schmooze, and they talk shop about investing.

This year, one of the topics of discussion is fees. The takeaway, especially these days, is that you want to avoid paying big ones.

The 'Compounding Effect'

John Mauldin, president of Millennium Wave Advisors in Dallas, says annual mutual fund fees of 1 percent or 2 percent might sound small. But consider the advisers' fee, which is also required every year. Those, Mauldin says, are a very big deal.

"The difference of 1 to 1.5 percent in commissions on an annual basis over 30 years is the difference between $1 and $2 at the end of the time period," he says.

In other words, paying too much in fees is the difference between retiring with half a million or $1 million.

"It's a huge compounding effect. It only seems like a small amount today, but it compounds over time," Mauldin says. "I think Einstein said that compound interest is the eighth wonder of the world."

Keeping Down Costs

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Saving For Retirement? Here's A Tip