Case Studies of 4 Smaller Employers with Amazing Low Cost Retirement Plans. Can You Emulate These Plans?

1. Case Studies
4 Employers

2. Company A
12 Participants
$2.2 Million
Insurance/Active Funds
Total Costs= $41,800
or 1.9% per employee
All Employee Paid

3. Company A
Investments
Record Keeper
Advisor
Total Costs
New Plan
= $2,640
= $2,600
= $2,300
= $7,540

4. Company A
Old Plan
New Plan
Total Savings
Comparison
Total Costs
= $41,800
= $7,540
= $34,260

5. Company A
Average
Large Balance
Annual Savings
= $3,300
= $9,000
Employee Pays Investments
Employer Pays Record Keeping and Advisor

6. Company B
110 Participants
$7 Million
Wrap Accounts/Active Funds
Total Costs= $105,000
or 1.5% per employee
All Employee Paid

7. Company B
Investments
Record Keeper
Advisor
Total Costs
New Plan
= $8,400
= $12,000
= $8,500
= $28,900

8. Company B
Old Plan
New Plan
Total Savings
Comparison
Total Costs
= $105,000
= $28,900
= $76,100

9. Company B
Average
Large Balance
Annual Savings
= $660
= $3,000
Employee Pays Everything

10. Company C
13 Participants
New Safe Harbor 401k Plan
Replace Simple IRA A Shares
Total Costs were 1.2% per
employee + A Shares
All Employee Paid

11. Company C
Investments
Record Keeper
Advisor
Total Costs
New Plan
= .12%
= $1,700
= $1,000
= $3,200

12. Company C
Employees no longer pay sales loads and
fund management charges have been
reduced by 80 to 90%. Future cost growth
is capped for advisor and record keeper.
Employee Pays Investments and Advisor
Employer Pays Record Keeper

13. Company D
5 Participants
$400,000
Active Funds & A Shares
Total Costs= $6,400
or 1.6% per employee
All Employee Paid

14. Company D
Investments
Record Keeper
Advisor
Total Costs
New Plan
= $480
= $1,780
= $800
= $3,060

15. Company D
Old Plan
New Plan
Total Savings
Comparison
Total Costs
= $6,400
= $3,060
= $3,340

16. Company D
Average
Large Balance
Annual Savings
= $500
= $2,100
Employee Pays Investments
Employer Pays Record Keeping and Advisor

17. CaseStudies' EmployeesPay:
Average = 1.35%
CompanyA CompanyB CompanyC
0.12% 0.33% 0.27%
CompanyD
0.12%