The Frugal Fiduciary Blog

There are no “economies of scale” in 401k plans – unless you are trying to beat the market

Posted by Greg Carpenter on Dec 17, 2014

Any 401k plan sponsor in America – repeat ANY – can buy market returns dirt cheap. There are no economies of scale in the market for indexed investments. No minimum purchase requirements. No high pressure sales pitches. Buy an index mutual fund or ETF and you’ve locked in market returns. As I have written previously, this indexed approach is the new baseline for small business 401k plans.

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Topics: 401k plan sponsor, small business retirement plans, low cost 401(k) plan, index funds, 401k blog, ETF, Multiple Employer Plans, small business 401k, 401(k), recordkeeping

Wall Street Journal article proposes sweeping changes to improve small business retirement plans – including simplifying fee disclosures and requiring index funds. Here’s our analysis.

Posted by Greg Carpenter on Jun 20, 2014

Photo credit: WSJ Live
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Topics: retirement plans, index funds, fiduciary, 401(k) Investments, 401k blog, Fee Disclosure, small business 401k, 401(k)

Schwab’s CEO embraces passive management. And Fidelity confirms a trend. Tipping point?

Posted by Greg Carpenter on Nov 20, 2013

Passive Management for Small Business 401k Plans
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Topics: retirement plans, index funds, 401(k) Investments, small business 401k, Target Date Funds, 401(k)

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