Captain401 (YC S15) Wants to Make Creating a 401k Easier for Businesses

Post by jhundal » Fri, Jul 31, 2015, 7:39 AM UTC

wj wrote: post #27

jhundal wrote: post #26

Earlier quoted context omitted.

Employee Fiduciary is at 8 bps: http://www.employeefiduciary.com/401k-plan-pricing/ Don't know if they would come out lower than Captain401 though (no mention of any cut of the overall assets on the Captain401 page, if that's correct, they're very likely lower priced).

That is definitely lower than I have seen (edit: for mid-sized plans at least). Thank you for bringing that to my attention. Is that advisory only? I don't see any mention of that including recordkeeping and custodial services in that fee but do see them on another page.

I don't have anything to do with the plan (just keeping my head up about how the business runs :) ), but from the FAQ (http://www.employeefiduciary.com/401k-faq/) it looks like they use a third party (MG Trust) for custodial services, paying them out of the asset based fee they already charge. Nearly certain that the recordkeeping is included (we're using it anyways), so the fees listed may in fact cover everything.

Post by danvoell » Fri, Jul 31, 2015, 1:44 PM UTC

roger_lee wrote: post #28

joshpadnick wrote: post #25

Earlier quoted context omitted.

Totally agree. Setting up a 401(k) seems hard and I'd love help. Picking the right investment fund might also be hard, but placing my savings under the management of a relative stranger feels very uncomfortable. In a world where Bernie Madoff existed, it'd be almost irresponsible to invest retirement savings with a startup. That being said, WealthFront and Betterment are basically startups, but they seem to be at a d…

Just to clarify, all index funds are managed by Vanguard, and employees who want to choose their own investment allocation are free to do so. However, for the majority of employees that need help with their investing strategy, we use the same investing principles as Wealthfront and Betterment to make sure they're globally diversified and automatically rebalanced. Also, all funds are held in an SIPC-insured secure tru…

When I signed up for my most recent 401K, there was a really slimy Edward Jones dude pushing some fund they called the "perfect retirement fund for a mid 30 year old" or something to that effect. As soon as I asked about management fees he bumbled around and started talking about the other funds they offered. Its going to be really tough to differentiate yourself as the "best investors". Differentiate yourselves on "best 401K platform" its much lower hanging fruit is all I'm saying. Once people are in the platform use historic performance to help them make the best decisions.

Re: Captain401 (YC S15) Wants to Make Creating a 401k Easier for Businesses

Re: Captain401 (YC S15) Wants to Make Creating a 401k Easier for Businesses