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The three primary reasons why 80% of
America's small businesses do not offer 401(k) plans to their employees
are : (a) perceived cost of employer-sponsored retirement plans, (b)
perceived complexity of company-sponsored retirement plans, and (c)
limited investment options. Mutual fund companies 401(k) plans to small
businesses do so by pre-packaging administration with their proprietary
fund investments; this pre-packaged approach, called "bundled
401(k)" tends to be pricey for small companies, limited features
and limited investment options. Employees who participate in bundled
401(k) plans typically do not have access to investments not offered by
the mutual fund company, and do not have access to the most popular
investment option today--the individual self-directed discount brokerage
account. |
