Fiduciary Fees

Experts act in your interest to eliminate conflicts and expenses.

Professional fiduciaries are paid as a percentage of assets for the services they perform and the risk they incur. Having a fiduciary that acts in the best interest of participants eliminates conflicts of interest while simplifying plan administration. The result is 30-60% lower plan fees.

0.27%

Investment Expenses

Low-cost index funds reduce expenses to maximize returns.

The industry average expense ratio of investments in plans up to $5MM is over 1%. These high fund expenses eat away at returns. But with BenefitGuard, professional investment managers build low-cost portfolios that make it easy to diversify risk, and maximize returns.

0.18%

Custodial Fees

An industry-leading provider custodies the plan assets.

A world-class custodian is important for plan administration, but that doesn’t have to come at a significant cost. With bulk buying, BenefitGuard can provide access to institutional share classes while getting custodial fees that are 40% to 70% cheaper than industry rates on comparable plans.

0.03%

Additional administration expenses are generally paid by the employer. Request a free customized proposal for your company or a side-by-side cost comparison and analysis of your existing plan.

- or -
$638,300
$423,200
$359,300
Do-It-Yourself Online 401(k) Typical
Full-Service 401(k)

Why Asset Fees Matter.

Asset fees are the unseen cancer that eats away at retirement savings. Mutual funds that are actively managed and said to "beat the market" charge huge fees to those whose money they manage. Why are asset fees so sneaky? Just a 1% increase in fees assessed to you can decrease your retirement nest egg by over 20% by the time you retire. Bottom line: Fees are a big deal.

Don't be fooled into thinking you can outsmart the market year over year. Your odds of beating the market net of fees are about 4%, less than half the odds of winning at a blackjack table in Vegas when you yell "Hit me!" with two face cards (worth 20) already in your hand. Just a few extra percentage points of annual fees can mean the difference between $360,000 and $640,000 over 25 years."

*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% represents the gross return for the Non-Lifestyle group (i.e. do-it-yourselfers) represented by those participants who chose their own portfolio mix throughout the period (assumed for Online and Typical Full Service). 7.2% represents the gross return for participants using professionally managed portfolios (assumed for BenefitGuard). All rates of return are hypothetical and are not meant to represent any particular investment. BenefitGuard, Inc. does not guarantee investment performance. Annual fees are assumed at 0.99%, 1.22% and 2.08% for BenefitGuard, Online, and Typical Full Service, respectively, and are based on market observations. Pricing varies by plan assets and number of employees. Ask us for a customized proposal for your company.