Low Cost Structure

Our clientele includes some of most diverse plan sponsor's in the United States. Many clients came to us after first implementing an insurance or brokerage based 401k, or one that was provided by their payroll company. After running the plan for a few years they soon realized the two main pitfalls, costly investments and inexperienced administration.

Stay Away From Costly Investments

There are many tricks in the trade, and high expense ratio funds with brokers and insurance agents can slip by you and make you believe that you are getting a plan with low administration fees. Let's consider two similar funds, one with an expense ratio of 0.03% and another from the payroll or insurance broker with a 1.25% expense ratio. The fund returns 10% for the year and you start with $100,000. At the end of the year, the lower expense fund would have a balance of approximately $109,967 whereas the other fund balance would be $108,625. A difference of $1,342. The fund net returns at the end of the year are as follows respectively, 9.97% vs 8.75%. Because the fees are built in, you dont realize how much you are actually paying.

Therefore, it is important to look at both sides of the equation, the hard costs (administration fee), and the soft costs (the internal investment expense ratio's). Brokers do not work for free, so it is imporatant that you understand where they are getting paid and making sure that you provide a good plan that balances costs with competency.

Inexperienced Aministration Hurts in the Long Run

The administration of retirement plans is a complex business. Payroll contributions need to be processed, and correctly allocated to a plan participant. Investment purchases need to be made on a timely and correct basis. Distributions and enrollments need to be processed and tax forms need to be filed on a regular basis. Rules are constantly changing and not maintaining your retirement plan with the latest tax laws can be a costly event.

So why us? Because you are not just a number, our executives understand retirement plans and that is all we do. When you have a technical question, you will be dealing with the same administrator, who is familiar with you and your plan, not just whoever answers the phone. It is this dedication to service that makes us special.

Get a Call Back

If you need to speak to us about a general query fill in the form below and we will call you back within the same working day.