Money management service Personal Capital, which launched last year, is announcing a new addition to its platform relating to 401ks. The company is debuting its own 401k plan and is launching a free 401k Fee Analyzer.
For background, Personal Capital is led by Intuit CEO Bill Harris and provides a suite of software aimed at helping people manage their investments, banking and personal finances through one central suite of web and mobile apps.
Harris tells us that many don’t realize that 401k fees can add up over time and potentially rob consumers of substantial amounts of retirement money. “We want to help people understand what 401k fees really cost, and give them a chance to do something about it with our 401k plan. Our plan is as “green” as it gets, using diversified, low-cost ETFs to charge just one half of one percent in total fees,” he explains.
Features of the Personal Capital 401k include low cost investment vehicles, a low rate of just .5 percent per year, free access to Personal Capital tools, and more. And with its new 401k Fee Analyzer, Personal Capital rates 401k plans “good, bad or ugly” according to their fee structure. “Good” plans, or “Green” plans, charge less than 1 percent. “Bad” plans, or “Yellow” plans, charge between 1.01 and 2 percent. “Ugly” or “Red” plans charge 2.01 percent or more.