Retirement often seems a very far off place to many people, and trying to view what that future may look like is difficult, as though looking through a dense fog. I know exactly how important it is to offer competitive benefits to my employees, not only in order to attract good employees, but to keep those that are truly great. So, when I decided to review our company benefits package, it was natural that my eye fell on our 401k. And, what I saw there led the way for something truly unique.
Focusing on our retirement package made me think about the 401k itself, and the more I thought about it, and our management team discussed it, we began to see the overarching flaw of the benefit. There is an unnecessary expense on behalf of the employer to both purchase and maintain a 401k. In fact, there is so much extra associated fee that a 401k isn’t considered a benefit that can be offered to every employee. Companies find that they have to ‘pick-and-choose’ when deciding if they can afford a package — and that does not make for a contented family atmosphere.
The problem is this: with your traditional 401k, there is no ‘full disclosure’ of all incurred costs. Why the big secret? By not requiring a ‘full disclosure’ the company offering the 401k can gloss over the internal fees and administrative costs of providing a 401k. Actually, some small businesses find that the initial $4,000-$5,000 they have to spend on assembling the retirement package is more than they can deposit into the account. This not only nullifies having the package, but it also makes the employer feel as though they are not as competitive with current benefits packages offered in like situations. The lack of good benefits also comes into play when great employees are considering staying the course with your company, or looking for more complete compensation elsewhere.
Once we realized all of this, it was clear what had to be done. We sat down and came up with a revolutionary new idea in retirement: the No Cost 401k. By designing a ‘multiple employer plan’ we can file one form for all the companies under this benefit package – slashing the administrative fees drastically. Also, Payday Inc. pays for all the testing that is usually preformed, and that way we can keep costs low to all employers. We can also offer a mix of quality investment choices, such as American Fund, Fidelity, T. Rowe Price and Vanguard, so that you are getting the most competitive retirement package, as well as the best dollar value. We focus on lowering internal costs and increasing performance, and our average fund cost is one-half-percentage-point less than your typical 401k.
Our cutting edge 401k is so streamlined that it has eliminated most of the middle people, and reduced the cost of administrative fees drastically. There is finally an option for the small business ready to step up its benefits package and inspire its employees. I am proud to announce the launch of our latest developing product: The No Cost 401k.
To see more on this product, please call 505-255-5433 or go to PAYDAYINC.com/401k.php