Uncooked Pizza and the Low Cost 401K Plan, Part 2 of 2 Blog Feature {% if subscribeProperty|lower == "yes" %} {% else %} {% endif %}
Greg Carpenter

By: Greg Carpenter on October 23rd, 2013

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Uncooked Pizza and the Low Cost 401K Plan, Part 2 of 2

Thought Leadership


Pizza and 401k plans have a lot in common. Really.

Making and selling pizza in volume is actually a complex process consisting of hundreds of small decisions that go into delivering a consistent, high quality product at a competitive cost. Think of the dough, sauce, cheese, toppings, cooking time and temperature just to name a few. All of these are thought through in advance and made part of a repeatable, consistent process. Each finished product recognizable to the pizza producer’s brand and available anywhere in the country.

A 401k plan is actually a combination of hundreds of processing decisions made by the recordkeeper. At Employee Fiduciary, we strive for an efficient, low-cost 401k plan to offer to our clients. We have thought through each seemingly simple process to get as much efficiency and consistency of outcome as possible. If we do our job right, our clients have an excellent experience with us at a very low cost.

Example: We process thousands of payroll contributions each month and each contribution has several “moving parts.” We put together payroll data, client bank account information and participant investment instructions. We use a strict set of internal procedures to get the work done accurately and efficiently. These procedures in turn drive our client requirements for working with us.

Package these procedures with about a hundred others, and you get a product called a 401k plan. Check out our 401k help center – retirement plans can be extremely complex.

Low cost is a key part of our brand. Because our costs are low, procedural efficiency and inside-the-box thinking are critical to executing our business model. We avoid exceptions - obsessively. We tend to attract a number of Vanguard small business clients. The efficient and frugal spirit of the “Bogleheads” is a similar to our approach to retirement plans.

Like Papa Murphy’s in the take and bake niche, we will never appeal to every 401k plan sponsor – we expected that when we built the company. We do, however, expect to appeal to those plan sponsors who value choice and low cost. Our clients appreciate the value in our approach.

Stay frugal (and procedurally sound)!



About Greg Carpenter

Greg Carpenter founded Employee Fiduciary in 2004. With 29 years of experience in accounting and finance, Greg has brought his expertise to a variety of advisory, senior and executive management roles. Greg has worked for a national accounting firm, a Fortune 500 plan sponsor, a major brokerage firm, and he served as the CEO of a major 401k TPA firm. He is a CPA and earned his BA from Yale and his MBA from The University of Chicago Booth School of Business.