ING’s ShareBuilder 401(k) is a plan aimed at giving small business a low-cost retirement plan that uses only ETFs. Stuart Robertson, general manager and principal, says that after a recession-related slowdown, the company is expected to top its pre-market meltdown numbers. “There’s a lot of confidence in the markets and the need to save is starting to resonate,” he says.
One new thing at ShareBuilder is their automatic pricing discount plan, which rewards customers with lower costs as they hit certain milestones. For example, when they hit $1 million, the administrative costs and asset management fees are lowered; once they surpass $5 million, there are no administrative costs and the asset management fees are even lower. “That way, they always have a great price plan. We don’t require a contract,” says Robertson.
ShareBuilder sticks to the “Keep It Simple, Silly” philosophy of investing by offering 16 ETFs, plus five ETF-based model portfolios. That’s by design because, as Robertson puts it, “most small businesses don’t really have the resources to have an investment manager run the 401(k).”
The lineup of ETFs that covers all major asset classes and fixed income is reviewed every six to 12 months to ensure that those funds are still effective on expense ratio, market cap and other factors. The model portfolios are reviewed every two to three months based on economic and other factors. [More on ShareBuilder’s 401(k) Plan.]
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