Many financial 401 k companies offer a range of services and products. Vanguard, for example, is a leading provider of retirement plan investments, managing more than $6.2 trillion in global assets. The company has more than 2 million participants and manages more than 4,000 plans. Voya Financial, meanwhile, is a top 401(k) provider, with more than $132 billion in assets and $44 billion in defined contribution plans. The company is also a leader in tech-enabled retirement plan services.
Some financial 401 k companies offer a variety of investment options, including fixed and variable annuities. These are hybrid products that combine insurance protections with a mutual fund’s diversification. They often have a longer time horizon, allowing for compounding of earnings and losses. Some 401(k) plans have specialized investment portfolios designed for near-retirement investors, with a focus on preserving capital and providing regular income.
Fidelity offers a 401(k) plan that provides a variety of investment options, including over 16,000 mutual funds from 380 fund companies. It also offers comprehensive advisory services to help plan participants choose the right investments. The company’s advisors are accessible in person or online and are available to answer any questions. Another great feature of Fidelity’s 401(k) plan is that it can be used in conjunction with the participant’s existing broker.
Voya is another financial 401 k company that offers a comprehensive retirement plan with over five million participants. The company has over $45 billion in assets and is the third largest financial 401(k) provider. Its clients include companies like Mercedes Benz US, Thomson Reuters, Nestle, Motorola, and J.M. Huber. The company is headquartered in San Francisco and manages over $603 billion in assets.
Financial 401(k) providers have various fee structures. The fee structure depends on the type of plan and the size of your company. It is important to find a plan that fits your needs before choosing a provider. You should also consider the administrative burden of managing multiple accounts. By dividing up the account administration tasks, you will be able to choose the right 401(k) company for your company.
ADP provides payroll services, human resources, insurance, and tax services. Its 401(k) plans are designed to work well with smaller businesses. ADP also allows employees to transfer plans. And, unlike many other companies, ADP provides a range of investment choices for employees. Their 401(k) plans are flexible and can cater to participants of any level of experience.
Leaving the 401(k) funds with the old employer may be a sensible decision if the plan is well-managed and offers a wide range of investment options. Often, employees move on to a new job without taking the time to remember the 401(k) plan they had with their old employer. The advantage of leaving the money in the plan is that it retains its tax-deferred status, which means that it doesn’t have to be paid out immediately.
If a company has a publicly traded stock, you may want to choose the company’s stock or a fund that purchases company stock only. This way, employees can benefit from the lower price of company stock and make a larger contribution to their retirement fund. Plus, your employer will probably match a portion of your contributions, increasing the amount of money that you can invest.