Another company is stepping forward to aid in the push to get exchange traded funds (ETFs) into 401(k) retirement plans.
Alvin Rapp, CEO of RPG Consultants in New York, tells us the firm is in talks with several ETF providers as word spreads about what RPG is trying to do. RPG is a third-party administrator providing administration and recordkeeping for company benefit plans.
"As people realize the value added, more people say they want to get in," Rapp says. He says they don’t know when the okay will be handed down, though. "It could be tomorrow, it could be three months from now."
One of the primary goals of having ETFs as components of 401(k) plans is to keep them cost-effective and transparent. The expense ratios of the plans Rapp is working on with ETF providers will be geared to the size of the plan, but that there will still be money saved.