401kDesign: Exchange Traded Funds Provide A Reliable And Cost-Effective Retirement Plan Solution

FOR IMMEDIATE RELEASE

Employers now have access to more affordable retirement plans, thanks to an innovative approach to investing. 401kDesign, a Madison-based consulting and plan design firm, is creating new investment possibilities using Exchange Traded Funds (ETF’s). Unlike typical ETF’s, 401kDesign has the ability to incorporate them on a daily valuation basis. Using ETF’s in this manner results in substantial savings for employers, by reducing the fees typically associated with the funds.

The savings also trickle down to benefit plan participants, potentially creating more retirement dollars. For example, large cap mutual funds, which are commonly used in 401k plans, have an average expense ratio of 1.19%. The Vanguard Large Cap ETF comes in much lower, with a total expense ratio of 0.07%. For a company plan valued at ten million dollars, that amounts to a savings of $120,000! The case for ETF’s is clear.

401kDesign is an independent firm, meaning funds from any investment provider are available to plan sponsors. As part of this benefit, ETF’s can be incorporated, using funds from a broad spectrum of well-known investment companies, including Vanguard, Barclays, NASDAQ, select sector SPDRS, and Morningstar.

“Using daily valuated ETF’s is one way to defray costs, while still providing a solid investment strategy to employees,” Jaeger said. “It’s our goal to help clients reduce their plan fees, and enable them to comply with Department of Labor regulations.”

401kDesign specializes in affordable, personalized retirement plans and plan management. For more information, visit the company website at http://www.401kdesign.net, or call (608) 213-1968.