Critical to any good benefits package is a solid 401k retirement plan. But often they are costly and complex. Whether you’re big or small, you deserve access to a simple, hassle-free 401k plan with Fortune 500 pricing and sophistication. Leveraging the BenefitGuard 401k platform, or in partnership with other plan providers such as Principal, American Funds, Securian, or VOYA, we ensure your plan is low cost and high performing, and requires less work. The result is more savings and higher satisfaction from employees!
Just a few extra percentage points of annual fees can mean the difference between $360,000 and $640,000 over 25 years.”*
*Annual fees are assumed at 0.99%, 1.22% and 2.08% for BenefitGuard, Online, and Typical Full Service, respectively. Assumes participant with $75,000 at age 40 saving $5,000 per year until age 65. Rates of return based on a Burgess and Associates study examining the performance of 14,487 retirement plan participants from 1997-2006. 5.30% gross return assumed for Online and Typical Full Service plans (non lifestyle, self directed investments). 7.2% gross return assumed for BenefitGuard plan. All rates of return are hypothetical and are not meant to represent any particular investment. BenefitGuard, Inc. does not guarantee investment performance.
Together with BenefitGuard – an industry leader in providing low-cost 401(k) plans – we’ve created a better solution. We leverage new technology and volume purchasing to drive down administrative fees. Then we charge a fraction of what other plan advisors charge for plan setup, maintenance, and employee communication. The net results are plan administration costs that run 30-60% below traditional 401(k) plans.
Leveraging institutionally priced Index-based investment options keeps costs low for your employees. Very low. And we eliminate indirect compensation. Nobody but the mutual fund companies get paid from your investment options.
“This simple investment strategy - indexing - has outperformed all but a handful of the thousands of equity and bond funds that are sold to the public.” source: The Elements of Investing; Malkiel and Ellis, 2013.
Because Index funds are heavily diversified by buying all or a portion of the total market, based on an established index, there is no market timing nor human error that can reduce returns.
This chart compares the average annual return of the S&P 500 Index Fund (8.43%) vs. average managed equity funds (7.0%) over 20 years, from 1992-2012.
Source: Elements of Investing, 2013
And we’re more than happy to work with your provider to make 401(k) uploads as easy as possible.