Looking for Low Cost 401 Provider

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Topic Author
david
Posts: 194
Joined: Wed Jan 02, 2013 11:39 pm

Looking for Low Cost 401 Provider

Post by david »

Last year I started a small law firm with a former colleague. We are two owners and are looking to start a retirement plan. We may eventually bring on associates/other employees but right now it's just us (and will be for the time being).

I've surveyed some of the main choices out there and for small plans, it appears that some of the newer "robo" advisors are the best overall.

The two I've looked at, that appear the least expensive, are guideline and saveday. They also appear to be ones that were recommended on here a couple years ago.

Guideline has a monthly and per user fee; saveday has a AUM fee (.35%). The breakeven is about 222k-497k of AUM depending on the guideline plan. From a couple years ago, based on what was posted in those threads, SaveDay has remained the same (percentage) price while Guideline has increased their prices by increasing the price of their lower cost plan and added new higher tier plans. Guideline offers more investment options; but the 5 portfolios that SaveDay offers are low cost and diverse so they are fine by me (and my colleague).

Is there any other plans/providers we should be considering? Anyone have thoughts on those or any other 401k provider?
Anything to watch out for or to look for in a plan? Anyone know how well these providers play with third party accounting firms?

This is my first time starting a plan and I'm looking out for pitfalls.
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