Solo 401(k) Plans Designed to Help You Save More
At ShareBuilder 401k, our goal is to simplify 401(k) plans and manage our costs to help your company save money and your employees save more for retirement.
Get Started with a Low-Priced Plan
ShareBuilder 401k plans are simple to buy online, and our low-cost plans include low-expense index investments that are built to help you save more!
Don’t Let High Fund Expenses Eat Away at Your and Your Employees’ Savings
Plan setup and administration are costs that most small businesses become familiar with pretty fast. The good thing is these can be low and are typically tax deductible too.
However, the most important expenses we suggest you pay attention are the investment expenses. It’s why we pioneered using low-cost index funds (ETFs) in 401(k) plans to help lower costs and advocate to keep your all-in investment expense less than 1%.
While you can't control the markets, you can control investments costs. Every dollar paid in investment expenses is one less dollar invested in the markets. Paying just 1% more in fund and investment expenses can cost each employee hundreds of thousands in savings over a 40-year career.
The effects of higher costs can compound and become profound over time. In this hypothetical example, Jill and Dan invested the same exact amount over 40 years, but because Jill paid 1% less in fees, she saved an extra $376,321, which is 27% more than Dan.
Paying 1% Less Can Make a Big Difference!
This example shows the effect that expenses can have on your 401(k) retirement account over a career of 40 years by comparing the costs of paying 1% versus 2% on investments and how savings may accumulate. It assumes the investments have a fixed annual 7% return before expenses with no distribution or tax considerations and does not imply future returns. The example assumes each employee has a salary of $75,000 in year one and receives a 3% merit raise each year on-going. In addition, the employee contributes 5% of her salary each year and receives a 3% of salary company matching contribution.