Small Business 401(k) Blog

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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Provider Shopping | 401(k) Studies

401(k) Fee Study: How Much Does a Fiduciary-Grade Advisor Cost?

By: Eric Droblyen
October 27th, 2021

When a business owner needs help picking investments for their 401(k) plan, my advice to them is always the same – hire a fiduciary-grade 401(k) financial advisor. The reason – only advisors bound by a fiduciary standard of care have a legal obligation to give impartial investment advice to their clients. In contrast, it’s perfectly legal for non-fiduciary advisors – who are bound by a lesser “suitability” standard – to give conflicted advice by steering their clients towards high-commission investments when lower-cost alternatives exist. In general, fiduciary-grade 401(k) advisors include investment advisers, but not brokers and insurance agents.

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401(k) Fees | Provider Shopping | 401(k) Studies | Fiduciary Responsibility

How Much Lower 401k Fees Can Grow Your Retirement Savings

By: Eric Droblyen
May 12th, 2021

There are few industries where the phrase “you get what you pay for” is less applicable than the 401(k) industry. Equally competent 401(k) providers can charge dramatically different fees for comparable administration services and investments. This variability is a big problem for employers – who have a fiduciary responsibility to protect the interests of plan participants by paying only “reasonable” 401(k) fees. Employers that fail to meet their responsibility can be personally liable for restoring participant losses due to excessive fees.

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401(k) Plan Design Checklist

Feeling overwhelmed?

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.

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401(k) Fees | Provider Shopping | 401(k) Studies | Fiduciary Responsibility

401(k) Fee Study: 75% of Small Business Plans Pay Hidden Fees

By: Eric Droblyen
April 28th, 2021

Employers have a fiduciary responsibility to ensure the fees paid by their 401(k) plan are “reasonable” – so excessive fees do not reduce the investment returns of plan participants needlessly. To do that job, employers should ”benchmark” their 401(k) fees periodically by comparing them to industry averages and/or the fees charged by competing 401(k) providers. Sounds straightforward, but this information is hard to find and often harder to compare on an apples-to apples basis.

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Provider Shopping | Plan Design | 401(k) Studies

The 5 Most Popular Small Business 401(k) Plan Features

By: Eric Droblyen
July 22nd, 2020

Tens of thousands of dollars are on the line.  This might sound a bit sensational, but when it comes to choosing the right type of 401(k) plan, this is true a lot more often than many small business owners realize. 

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Provider Shopping | 401(k) Studies | Financial Advice | Fiduciary Responsibility

401(k) Fee Study: What Does a Fiduciary-Grade Advisor Cost?

By: Eric Droblyen
August 7th, 2019

When an employer is looking to hire a financial advisor for their 401(k) plan, my advice to them is always the same – only consider financial advisors subject to a fiduciary standard of care. My reason is simple - only fiduciary-grade advisors are obligated by law to give impartial advice. In contrast, non-fiduciary advisors can give conflicted advice that favors investments with high commissions – making it harder for employers to keep their 401(k) fees in check. Generally, investment advisers are subject to a fiduciary standard of care, while brokers and insurance agents are not.

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Provider Shopping | Plan Design | 401(k) Studies

Small Business 401(k) Plan Design Study: What 3,975 401(k) Plans Are Doing

By: Eric Droblyen
March 20th, 2019

Small business owners can have dramatically different goals for their 401(k) plan. While some want to maximize key employee contributions, others want to incentivize plan participation by all employees. Business owners have nearly endless options for meeting these goals – many with very different expenses. The process of matching 401(k) goals to available options is called 401(k) plan design.

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