The Blue Map Difference
Most traditional 401(k) plans are characterized by hidden and excessive fees, underperforming investments, and fundamentally misaligned incentives between the client and vendor.
You know this isn’t right, but there hasn’t been a better alternative. Until now.
You want a low-cost, easy-to-administer 401(k) plan that gives employees a comfortable, secure retirement and opportunities for financial education as they work through their careers.
Your employees want the same – to feel secure and confident in their investment decisions, a trusted partner to help navigate the financial maze, and access to excellent products at fair prices.
Your traditional vendor has one interest: profit. Often, at your expense.
How much is your provider really making off your dime?
Most 401(k) plans are sold on the basis of the “stated plan cost,” typically a percentage of the total assets in the plan. For example, a company with a $3 million 401(k) plan may pay 0.8% per year for their 401(k) plan, or $24,000 annually. But this isn’t all your provider is paid.
Most vendors sell you 3rd party products and receive a percentage of the fees you and your employees are paying for those services, on top of the fees they get directly from you. What’s the big deal? First, your plan is more expensive than it should be. Second, your current 401(k) service provider may be motivated either by using its own proprietary products or by selecting 3rd party vendors who pay a high revenue sharing percentage or other compensation. Additional profit may be a bigger priority than making wise investment decisions on your behalf.
Here’s just a glimpse of the hidden and confusing fees you may be paying today:
- TPA takeover fee
- Transfer fee
- Plan termination fee
- Installment payment set-up fee
- Loan maintenance fee
- Additional plans fees and/or extra services fees
Is your current provider taking fiduciary responsibility?
Many 401(k) service providers refuse (or disclaim in their “fine print”) the Employee Retirement Income Security Act (ERISA’s) mandated fiduciary responsibilities to You, as the Employer and Plan Sponsor. Instead they use “fine print” to put these duties solely on You, the Employer and Plan Sponsor. They want the freedom to profit off your investment dime. Frankly, they engage in conflicts of interest with You, Your Company and Your Employees. Blue Map does not do this and never will.
Here are a few ways traditional providers turn a profit on your investment:
- Revenue sharing from investment funds
- Fee waivers/ reimbursements paid
- Cost of capital charges
- Sub-advisor fees
- Advisor margin and securities lending fees
- Annual marketing or distribution fees (12B-1 fees)
- Interest spread
- Surrender charges
Blue Map is different.
We don’t accept revenue sharing, “soft dollar” arrangements or other financial inducements that are not in your best interests. With Blue Map, you get the nation’s best investment products and you know exactly what you’re paying for.
|Blue Map Capital/ Newport Group/ TD Ameritrade||Typical Insurer-Sponsored Plan||Typical Brokerage House, Wire-house Plan||Typical Online Service Provider Plan|
|Best-in-class investments by asset class?||Yes||No||No||No|
|Low fee, best-in-class administrative services?||Yes||No||No||No|
|Revenue sharing or other compensation from third parties?||No||Yes||Yes||No|
|Hidden and/or additional, confusing fees?||No||Yes||Yes||No|
|Elaborate, confusing disclaimers of responsibility and/or liability?||No||Yes||Yes||No|