Small business owners know they have to offer a tax-advantaged retirement savings plan, but don’t necessarily have the experience to establish a plan without a lot of help. ShareBuilder 401k takes the guesswork out and guides new plan owners through the steps so there aren’t any questions. This is why ShareBuilder 401k earns our spot for the best retirement plan for a do-it-yourself (DIY) solution.
ShareBuilder 401k designed its onboarding process so business owners can establish a plan in a matter of minutes without any help. Of course, should a question arise, the provider has a team of advisors to help. By making things easy for business owners to understand and execute, ShareBuilder 401k is able to keep costs down and pass those savings on by way of lower administration fees.
Also, this employee retirement plan provider relies on index funds to keep investment fees way below 1%. That’s impressive, given that the average investment fee for funds is 1.5% for actively managed funds. Many of ShareBuilder 401k’s funds have fees in the 0.04% to 0.16% range, far below the competition.
Index funds are low-cost, passive funds that track a basket of stocks. Employees participating in ShareBuilder’s 401(k) plans can select from a variety of index funds, including bonds; treasuries; commodities; alternative investments; and large-cap, mid-cap and small-cap stocks. ShareBuilder also keeps plan fees for employers low, charging a flat monthly fee. A big bonus is that ShareBuilder digitizes the entire process, automating paperwork and administration, which makes it easy to access the plan wherever you have an internet connection.
With 23 index funds for you to select from and six model portfolios to emulate, ShareBuilder provides a lot of variety while keeping investment fees low. That’s a win for employers and employees alike.
ShareBuilder 401k also offers customers automatic discounts based on their investments. No matter how many employees participate in your plan, certain criteria can lower your costs. The more assets your business holds in its plan, the more money you save on your ShareBuilder account. For example, if your plan’s assets are more than $5 million, you don’t have to pay an administration cost.