Most mid size 401(k) plans look like this:

1. • Life Insurance company or broker/dealer intermediary = indirect investing.
   

2. • Employees must select from short list of funds with very expensive fees (of 2% or more)
   

3. • Little transparency on true costs.
   

4. • “Pay to play” arrangement between fund companies and intermediary.
   

5. • “Advisor” plays sales & minor servicing role and can’t give advice to participants.
   

Our approach looks like this:

1. • No intermediary, so employees invest directly in funds.
   

2. • Choose any publicly available funds.  OBFP “SmartPlan” average fund cost 0.24%
   

3. • Access to America’s Lowest Cost 401(k)SM record keeper and third party administrator.
   

4. • No “separate account” or “daily asset charge” fees. 12b-1 & “Sub TA” fees rebated to Plan.
   

5. • Robust support for Investment Committee following the Uniform Fiduciary Standards of Care.
   

How this helps:

1. • Bigger nest eggs. GAO study: 1% decrease in fees increases your savings by 17% over 20 years.
   

2. • #1 request from participants?  Investment advice.  OBFP can provide it legally.
   

3. • Plan Sponsors & participants often save 40-50% by switching to our approach.
   

Plan Resources