Rather than charging multiple fees for all of the services Guideline provides, we have a flat fee that is paid by your plan sponsor, so long as you remain employed. Guideline charges your employer a monthly base fee, as well as an $8 monthly per-participant monthly fee that covers plan services, including the general administration and maintenance of your 401(k). See this article if you would like to keep your funds in your Guideline account after leaving your company.
Guideline does not charge any asset under management fees for its 401(k) services. This means that as a participant, you pay nothing out of your investments to Guideline for participating in your 401(k) plan. However, our Custodian is paid .03% of assets to act as Custodian to the Plan and to perform trading on your behalf.
Your Guideline 401(k) account invests your contributions in mutual funds. These mutual funds charge an annual net expense ratio, which is deducted from your investment to operate the fund, perform administrative duties, and to advertise or market the fund to potential investors. These fees will be charged by the fund manager and paid out of your investment gains (or added to your losses) on a daily basis. They will be reflected in the share price of the investment.
Guideline carefully selects no-load mutual funds that are passively-managed in order to offer the lowest management fees possible while delivering quality investment management. Our average managed portfolio expense ratio is 0.06%. In comparison, some other providers are charging participants between 0.68% and 2.66% annually in expense fees.
It is important to read your Fee Disclosure so that you know exactly what you are paying out of your 401(k) account. You can find your Guideline Fee Disclosure here.