Small business owners have a tough time setting up retirement plans for their employees as they face higher fees than larger corporations.
Continue Reading Below
However, America’s Best 401K is disrupting the retirement savings business by offering a low-cost investment strategy for small business owners.
“The financial services industry doesn’t want to offer those plans to small business because they can’t make a buck on it,” CEO Tom Zgainer said.
Zgainer said small business owners have been told they don’t qualify for low cost investments. In addition, more than 70% of 401(k) participants are unaware they are paying excessive fees.
“What we see are these companies that have 1.5% to 3% in investor-related fees that are essentially devastating,” he said.
More From FOX Business
America’s Best 401K has developed a plan that keeps investment-related fees at a lower rate while removing the fiduciary liabilities of the sponsored plan. According to Zgainer, the plan allows businesses to provide one-to-one advice with participants.