Fees Matter

Do 401(k) fees matter?  Yes they do.  Each .10% in avoidable fees puts a drain on 401(k) account balances.

Take the example of Mary who works at Company A and will retire in 27 years.  Mary has $24,000 in her 401(k) plan and contributes $250 bi-weekly.

Mary’s 401(k) plan is from a nationally known company and has fine investments and participant support.  Her plan administrator is happy with the service and has no reason to consider making a change, except…

Mary’s plan administrator has never considered the participant fees of 1.94% charged by her plan.  Why?  Some fees do not show up in mutual fund expenses where people are looking.  They are difficult to identify.  Under Mary’s plan, if the investments in her 401(k) account return 9% on average over her working life, she will receive a net return of just 7.06%.

When Mary retires she can expect to have $662,783.17 in her 401(k) plan.

Now let’s look at Brett who works at Company B.

Like Mary, Brett has 27 years until retirement, $24,000 in his 401(k) plan, contributes $250 bi-weekly and expects to average a 9% return over his working life.  Unlike Mary, Brett’s plan administrator learned that their fees were unreasonably high and made the switch to Orlando 401(k) Specialists and Employee Fiduciary – America’s Low-Cost 401(k).

Because Brett’s new plan is charging just 0.65% in participant fees, Brett would receive a net return of 8.35% in his 401(k) account compared to Mary’s 7.06%. Thus Brett would reach retirement with $842,429.59 compared to Mary’s $662,783.17, all because Brett’s 401k administrator received great information and acted.

Our Employee Fiduciary 401(k) fee offering of 0.65% is 0.20% less than the average plan of a large corporation with $100 million in employee assets (Pension Data Source, Inc.) and applies to any size plan including startups.

Starting up a new 401(k) plan with Orlando 401k Specialists and Employee Fiduciary is easy.  And so is converting your existing 401(k) plan to us.  You will continue sending employee/employer contributions to your current plan until we have your new plan up and running.  After you begin sending contributions to your new plan, the balances from the old plan will be transferred in.  The entire process takes about 90 days from start to finish.

Fee Schedule

Start Up New 401(k) Plan – $500
Convert Existing 401(k) Plan – $1,000
401(k) Annual Base Fee – $1,500
Annual Fee Includes Up To 30 Employees. Each Additional Employee $30/yr.
0.65% Fee Structure Includes Mutual Fund Expenses
We utilizes Vanguard Funds.  You can utilize any funds you wish.

Contact us today!