Choose Ubiquity and Potentially End Up with $109,338 MORE Money

The Truth About 401(k) Pricing

If you are looking at 401(k) pricing for the first time or trying to compare your existing plan’s fees to another option, the industry has made it as hard as possible for you to compare apples to apples. But that’s why we’re here— to shine a bright light on how every other firm is trying to rip you off with a smile.

It’s why we’re the only firm ranked the #1 401(k) provider on Google with 93% 5-star Google reviews¹. We’ve got your back and we’re going to show you what’s going on behind the 401(k) curtain. The following information is what the competition does not want you to read.

The truth is, you’re probably paying a lot more than you realize

401(k) pricing is purposefully opaque so it’s hard for you to understand what you’re really paying. Worse, other companies nowadays are hiding these fees in plain sight by making them sound ordinary or innocent. A great example of this is a fee called employee pricing. Sounds innocent enough, right?

But employee pricing is really a fee that gets bigger and bigger and bigger the larger your account grows…which it should, based on how the stock market has performed historically over a 20-30-40-year time period.

In industry jargon, an employee pricing fee is really an asset under management (AUM) fee in sheep’s clothing. Doesn’t sound so friendly and innocent now, does it?

Next is an example of why these employee pricing / AUM fees eat into your 401(k) balance over time – so that at the end of 20-30-40 years you have less money than you would have if you were able to avoid this fee.

Let’s look at an example of why percentage-based pricing eats into your 401(k) balance over time – so that at the end of 20, 30, or 40 years, you have less money than you would have if you were able to avoid this fee.

Jennifer and Joshua each have 401(k)s with a value of $50,000. Jennifer’s plan is with Ubiquity Retirement + Savings and her fees are flat $6/month with an investment expense fee of 0.17%. Joshua’s plan is a percentage fee-based account, and his annual employee pricing percentage-based fee is 0.50% with an investment expense fee of 0.17%.

Assuming they don’t contribute another penny to the account, and it grows an average of 10% every year, at the end of 30 years, Jennifer’s Ubiquity account is worth $823,470, with fees of just $14,142.

But Joshua’s account is only worth $714,132 with fees of $50,217.

Ubiquity’s flat fees could help you end up with $109,338 more over 30 years vs. a plan that charges percentage-based fees.

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How do I avoid employee pricing fees?

Here’s our top 5 ways to avoid employee pricing fees

Make sure you choose a 401(k) provider that only charges a flat fee
Ask up front if they charge employee pricing
Ask your HR benefits administrator, financial advisor, plan sponsor, or third-party administrator if you’re being charged employee pricing (aka assets under management fees)
Advocate for yourself and get them to switch to a 401(k) provider who disavows those fees. We’ve heard it said—no one is going to love you as much as you love yourself, so you’ve got to stick up for yourself and save yourself as much money in fees as possible
Save yourself the time and headache by starting with Ubiquity from the get-go. You’ll avoid employee pricing / AUM fees and have more of your money working for you vs. going into the pocket of your 401(k) provider

Bottom line: 401(k) fees can cost you over $100,000

The answer is clear. Flat fees don’t grow over time, unlike employee pricing / AUM fees. Be on the lookout for ANY percentage-based participant fees.² These types of fees get bigger the larger your account grows over time and take a bigger chunk out of your retirement money. You work too hard to be gifting your 401(k) provider with tens or hundreds of thousands of dollars in fees over the life of your 401(k).

Call Ubiquity retirement experts toll-free at 866-320-8556 to make sure you don’t get ripped off today.

¹ Google ratings are based on client reviews of Ubiquity Retirement + Savings products and services. Details on the methodology Google employs to calculate ratings can be found here. Rates currently displayed are as of September 30, 2022 and are based on reviews from 2014 through 2022.
² Calculations based on the following scenario:Jennifer and Joshua each have 401(k)s with a value of $50,000. Jennifer’s plan is with Ubiquity Retirement + Savings and her fees are flat $6/month with an investment expense fee of 0.17%. Joshua’s plan is a percentage fee-based account, and his annual employee pricing percentage-based fee is 0.50% with an investment expense fee of 0.17%.Assuming they don’t contribute another penny to the account, and it grows an average of 10% every year, at the end of 30 years, Jennifer’s Ubiquity account is worth $823,470, with fees of just $14,142.But Joshua’s account is only worth $714,132 with fees of $50,217.Ubiquity’s flat fees could help you end up with $109,338 more over 30 years vs. a plan that charges percentage-based fees.

Flat fees are charged by Decimal, Inc. for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. Plan Sponsors are advised to review all service agreements with providers (e.g., investment advisors, custodians, broker-dealers) to evaluate total plan costs.

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