Providing your employees with an option to join a 401K plan sounds more like a dream than a reality. It serves as quite a perk. And it helps level that proverbial playing field. For example, bigger companies often siphon off great talent from small businesses because they can’t provide such perks.
One of the biggest hurdles small businesses face remains the costs associated with managing those 401K plans. For example, consider how much it costs for record keeping and accounting fees.
But what if a 401K existed with no administrative fees for employers?
A company called SaveDay says it can help small businesses. It claims to offer employees a 401K plan with no cost burden to the employer.
How the SaveDay 401k Works for Employers
SaveDay integrates with any payroll provider. As a result, it works with small businesses of any size, said CEO Barry Mione.
“SaveDay will handle the sync with payroll,” Mione said. “Once payroll is submitted, 401K contributions are also completed.”
With traditional 401K plans, the employer pays administration fees. For example, the cost covers things like management, record keeping, accounting, legal and trustee services.
“The fees can vary widely in the industry,” Mione said. “The SaveDay cost to employer is a nice round number, zero.”
How the SaveDay 401k Works for Employees
Any 401k by definition functions as a professionally managed account. These accounts help employees reach retirement goals. As a result, SaveDay uses a proprietary online risk assessment to analyze each employee’s financial status. For example, the company looks at when they want to retire, and the employee’s risk tolerance.
“The individual’s risk tolerance is analyzed in seconds with remarkable accuracy,” Mione said. “The result is a customized portfolio base.”
For the employee, SaveDay’s investment fees are the lowest in the industry at .35% annually, or $3.50 per one thousand dollars invested. That covers investment management and all investment-related services.
Fund fees reach no more than .10%. As a result, SaveDay’s all-in fee rises no higher than .45%.
“Given the current state of the economy, we are moving quickly to help secure retirement accounts,” Mione said. “To assist in these efforts, we are waiving all our fees on new SaveDay 401K plans until July 1, 2020.”
SaveDay Is a Bundled Provider
SaveDay stands alone as a bundled 401k provider for small businesses.
“We are not just a 401k advisor, we also manage and trade securities on behalf of our clients,” Mione said. “Bundled this way, we offer small businesses a unified service like no one else.”
“We don’t use third parties in our 401K plans,” he explained. “This is how we pass the savings on to our clients.”
Nondiscriminatory testing is critical and mandatory for all 401K plans. If a 401K provider does not offer compliance testing or charges high fees for those tests, it creates big problems for small businesses. SaveDay does not charge for compliance testing.
Barry Mione Background and Experience
In 1985, Barry Mione earned a bachelor’s degree from Stony Brook University, New York. He then earned certification from the Securities Industry Institute through the Wharton School, University of Pennsylvania.
“As the internet began pushing new opportunities within the financial industry, I began working in the investment banking division at Donaldson, Lufkin & Jenrette (DLJ), a U.S. investment bank,” Mione said. “Shortly after starting at DLJ, a handful of associates and I cofounded DLJdirect, an online brokerage business.”
DLJdirect IPO’d in 1999, raising $320 million. Owners sold the company in 2005. As a result, they delivered its technology and customers to E*Trade for $700 million.
For the next few years, Mione held upper management and executive positions in several companies. For example, he worked for Credit Suisse, BNY Mellon, and the Bank of Montreal. In 2012, he joined the executive leadership team at Kapitall. As a result, in 2015 he took leadership as president of New Kapitall Holdings LLC.
About New Kapitall Holdings
“New Kapitall Holdings is a platform used to inspire and teach the next generation about investing using unique gamification strategies,” Mione said.
With Mione at the helm, Kapitall received distinctive recognition awards. For example, the company won Forbe’s Fintech 50 Finalist and U.S. News Top 10 Greatest Investment Sites for Millennials.
In 2018, Kapitall got selected as one of four companies to participate in Fidelity’s new worldwide accelerator program. Disruptor Daily chose Kapitall as one of Nine Companies to Watch in 2018.
“SaveDay acquired Kapitall’s broker/dealer and advisory business, which accelerated the growth and opportunity for the company,” Mione said. “I used my industry foresight to offer a digitally advised investment product with a portfolio customization that is unique to the market.”
Image: Depositphotos.com
This is nice. It will make your employees feel secure without you spending so much. That’s a win-win
I love having the option of providing a 401k plan with no cost to the employer. However when considering employee costs, your article states, “SaveDay’s investment fees are the lowest in the industry”. I disagree with this point in that there are other providers, such as Employee Fiduciary and Guideline, Inc., with lower employee fees. Thank you.