Four other providers you may wish to consider that scored highly with our reviewers are:
Vanguard
Vanguard offers savers access to hundreds of mutual funds and ETFs with an average fund expense ratio at Vanguard is 0.08%. This is much lower than the industry average of 0.44%. We also like that they charge no trading fees either. The funds they offer tend to perform well over time (however, bear in mind that past performance is not a guarantee of future performance). Employers can offer their staff a wide variety of retirement savings plans, including a SEP IRA, individual 401(k), small business 401(k) and SIMPLE IRA. We also like the absence of a minimum investment requirement as that lowers the barrier to entry for SMBs. Last but not least, employers will find managing their accounts easy thanks to the intuitive dashboard on Vanguard’s site.
Fidelity
Fidelity’s simple account fees for its 401(k)s and IRAs stand out from its competitors – the provider charges $500 for setting up your account and $300 per quarter thereafter. Employees pay just 0.125% on their account balance and $25 for bookkeeping each quarter. Fidelity also doesn’t charge commissions when participants buy or sell U.S. stocks, bonds, mutual funds or ETFs. If you’re self-employed, the company offers SEP IRAs meaning you have access to one of the most cost-effective ways to save for your retirement.
We love how straightforward setting up an account on Vanguard is together with the extensive knowledge base on the providers site that helps your plan’s participants understand each type of investment in greater depth so they can determine which are right for them.
Shelton
From the start, Shelton assigns you a dedicated account manager so you feel supported at all times. Importantly, the firm stays with you after the plan has been set up and your account manager is there to assist you with your questions if any issues arise. We love Shelton’s live customer support. The team is there when you need them, unlike many other providers that operate ticketing systems where you have to wait for a reply. The volume of information on the firm’s website is impressive and it will help educate both you and your staff about the world of retirement savings and planning. The firm will even come to your workplace to speak to your staff, if you think that will help improve participation rates.
Perfect 401k
What stops many SMB owners setting up a retirement plan for their staff are concerns about how long the process will take. Of all the providers we reviewed, Perfect 401k is perfect for simplifying and fast tracking the process. From the outset, a dedicated implementation team is there to simplify the process for you. They’ll help you design the plan for your company and prepare enrollment materials to distribute to your staff. We love how much control staff have over their own plans – they can choose fully-managed, guided or self-directed accounts for themselves. For those that want to take more charge of their portfolio, they can choose from up to 20 low-cost mutual funds and even open an account with the broker Charles Schwab. All together, these factors should ensure higher levels of participation in your plan across the business.