The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

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401(k) Fees | Provider Shopping | Fiduciary Responsibility

How to Find & Calculate Nationwide 401(k) Fees

By: Eric Droblyen
June 30th, 2020

If you have questions about Nationwide 401(k) fees – how they work, how much they cost on average, or how you can find & calculate them for your plan – you’ve come to the right place. In this guide, we’ll show you how to calculate the full cost of a Nationwide 401(k) plan using their DOL-mandated fee disclosure.

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401(k) Fees | 401(k) Investments

Lowering 401(k) Fees – Options for Sponsors and Participants

By: Eric Droblyen
June 10th, 2020

High 401(k) fees are a big problem. Over the course of many years of investing, these fees can cost you tens – even hundreds – of thousands of dollars thanks to the power of compound interest.

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401(k) Plan Design Checklist

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Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

Blog Feature

401(k) Fees | Provider Shopping | Fiduciary Responsibility

How to Find & Calculate John Hancock 401(k) Fees

By: Eric Droblyen
June 6th, 2020

If you have questions about John Hancock 401(k) fees – how they work, how much they cost on average, or how you can find & calculate them for your plan – you’ve come to the right place. In this guide, we’ll show you how to calculate the full cost of a John Hancock 401(k) plan using their DOL-mandated fee disclosure.

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401(k) Fees | Provider Shopping | Fiduciary Responsibility

How to “Value” 401(k) Administration Services and Investments

By: Eric Droblyen
May 13th, 2020

Employers have a fiduciary responsibility to pay only “reasonable" 401(k) fees from plan assets because excess fees needlessly reduce the investment returns of plan participants. To confirm 401(k) fees are “reasonable," employers must benchmark them – basically, compare the administration and investment fees charged by their 401(k) provider to the fees charged by competing providers or industry averages. If you're responsible for keeping your company's 401(k) fees in check, I recommend you benchmark them on an “all-in” basis.

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401(k) Fees | Provider Shopping | Fiduciary Responsibility

A “Rosetta Stone” for Finding 401(k) Provider Fees

By: Eric Droblyen
April 29th, 2020

401(k) fees paid from plan assets reduce participant returns dollar-for-dollar. These lost earnings can dramatically erode a 401(k) account account balance over time, so employers have a fiduciary responsibility to pay only “reasonable” fees – so excess fees do not reduce participant returns needlessly. To evaluate the reasonableness of their 401(k) fees, employers must benchmark them – basically, compare the administration and investment fees charged by their 401(k) provider to the fees charged by competing 401(k) providers. I recommend employers do so on an “all-in” basis.

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401(k) Fees | Provider Shopping | Fiduciary Responsibility

Don’t Let Your 401(k) Provider Hide the Cost of Your Plan

By: Eric Droblyen
February 5th, 2020

There are few industries where the phrase “you get what you pay for” is less applicable than the 401(k) industry. That’s because equally competent 401(k) providers can charge dramatically different fees for comparable administration services and investments. This variability is a big problem for business owners – who have a fiduciary responsibility to protect the interests of their 401(k) participants by paying only “reasonable” fees from plan assets. If an owner fails to meet their responsibility, they can be personally liable for restoring participant losses due to excessive fee payments.

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