https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
Vanguard average expense ratio: 0.18%
Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
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Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#12https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
Jesus those fees are high. 50 basis points to just warehouse the money. Wealthfront charges half of that for some moderately sophisticated management.
Plus even more on the employer side! Wow.
And people say they are cheaper than other 401k providers? That's nuts.
EDIT: OK, it appears (https://captain401.com/investments) that they will optionally do some automatic rebalancing for you so they're a bit more than just a warehouse but still.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#13I interviewed with these guys! I've spoken with one of the founders, Roger Lee, at length about their product and I have to say that they are amazing people with great vision. Even though I didn't get the gig, it's great to see them doing well! Good things happen to good people.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#14This is awesome. I've experienced first hand the hassle of setting up a 401k for employees (and now appreciate why so many companies don't offer it until they're bigger). In my mind, it would be a strictly better world where all companies could offer this benefit.
I wish the law was rewritten so that this sort of savings benefit wasn't tied into your employer having to set it up. Get rid of 401ks and just raise the damn IRA limit.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#15I interviewed with these guys! I've spoken with one of the founders, Roger Lee, at length about their product and I have to say that they are amazing people with great vision. Even though I didn't get the gig, it's great to see them doing well! Good things happen to good people.
Roger is a real smart guy. I know because I went to summer camp with him years ago.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#16https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
Jesus those fees are high. 50 basis points to just warehouse the money. Wealthfront charges half of that for some moderately sophisticated management. Plus even more on the employer side! Wow. And people say they are cheaper than other 401k providers? That's nuts. EDIT: OK, it appears ( https://captain401.com/investments ) that they will optionally do some automatic rebalancing for you so they're a bit more than just…
Hi Folks, Full disclosure, my company also provides small businesses with 401(k) plans.
Fees are extremely important in a 401(k) plan. Guideline never charges fees on AUM. Your money is free to grow. Guideline's average expense ratio is .14 and made up of the very same Vanguard funds. How can we do this? Look at the form ADV for your providers, it will dictate how administrators are compensated. You'll notice lots of hands in the cookie jar... We are full stack, owning every piece of the plan up to custody. We don't outsource. We charge $8/pp/m to the employer, nothing to the participant. You can learn more at https://www.guideline.com
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#17https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
You guys should check out OctaveWealth 401k (https://octavewealth.com/). They are also YC, have a flat fee 401k (no percent based fees!), and build their investments models in-house.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#18https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
You guys should check out OctaveWealth 401k ( https://octavewealth.com/ ). They are also YC, have a flat fee 401k (no percent based fees!), and build their investments models in-house.
I was curious if YC had any issues with accepting/funding companies that are in the same space as other portfolio companies. I have heard that venture capitalists often don't. Zenefits and Zen Payroll/Gusto was what came to mind.
My startup is in the financial wellness space of the 401(k) industry (we are not advisors and just do participant education) and I'm going to be applying to to the next session so this bit of news is of interest to me. Thanks.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#19https://captain401.com/pricing How do these financial services justify charging a percentage of the funds managed? Is there more work involved in handling an account with a larger balance?
Jesus those fees are high. 50 basis points to just warehouse the money. Wealthfront charges half of that for some moderately sophisticated management. Plus even more on the employer side! Wow. And people say they are cheaper than other 401k providers? That's nuts. EDIT: OK, it appears ( https://captain401.com/investments ) that they will optionally do some automatic rebalancing for you so they're a bit more than just…
This is 100% true. Mainstream 401k fees are out of control. I don't know how much is opportunism and how much is regulatory burden, but parity to wealthfront or anything else retail would be fucking miraculous.
Re: Captain401 (YC S15) raises $3.5M to help more businesses offer a 401k
#20Awesome team and product! Paul is a great guy. I was interviewing there, but sadly the position I was applying for was filled. :(