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Products August 19, 2020
Rebalance Offers Personalized 401(k) Products to Small Businesses
The firm will also assume the role of investment adviser to the plan, and therefore accept most of the fiduciary responsibilities as well.
Reported by Amanda Umpierrez
Investment firm Rebalance has launched Better K, a 401(k) product designed to take the firm’s approach to wealth management and apply it to retirement planning for small business owners and their employees.
Better K provides each plan participant an investment strategy based on his own, personal needs. Each participant is provided a personalized risk assessment, and the results are used to select the optimal retirement portfolio for each participant.
“Our experience over the past decade of working with individual investors is the impetus for developing Better K,” Rebalance Managing Director Mitchell Tuchman said in a statement. “Time and time again, clients have come to us with 401(k) plans from previous employers that clearly weren’t developed with their best interest in mind. While many companies offer 401(k) plans to their employees, they provide no guidance or investment education. Employees are left to their own devices to select from a laundry list of investment options with no support from a professional financial planner or investment manager.”
Better K aims to cut fees for plan participants and administrators, as well as liability for small business owners. Because Rebalance assumes the role as an investment adviser to the plan, it is also assuming most of the fiduciary responsibilities, thereby reducing a business owner’s liability exposure.
“Small businesses often get punished when it comes to options and fees associated with traditional 401(k) plans,” continued Tuchman. “With Better K, small business owners and their employees can reduce their annual 401(k) fees by up to 50%. Not only that, at a time when more employers are getting sued over fiduciary issues related to their 401(k) plan, the added feature of greatly reduced legal risk to the business owner is a huge benefit.”
In partnership with EPIC Retirement Plan Services, Better K by Rebalance provides plan participants with 24/7 access to their accounts. Participants can access their account via a mobile app, website or multilingual telephone support.