Better K from Rebalance Is a 401K Plan for Small Business

better k 401k

Wealth management firm Rebalance recently announced the launch of a new 401(k) product called Better K, which offers a personalized approach to retirement planning for small business owners and employees. 

The product is unique in the market due to an investment strategy based on the business owner’s or employees’ personal needs instead of a cookie-cutter approach used by many companies, Rebalance said. Better K provides plan participants with a personalized risk assessment, which it uses to select the optimal retirement portfolio for each participant.

Better K from Rebalance is a 401K Plan Designed for Small Business

One way Better K benefits small businesses is by reducing fees for plan participants and administrators. Traditionally, small businesses with 100 employees or fewer pay significantly higher annual fees for their 401(k) plans than larger employers. 

The fee reduction strategy puts small businesses on an equal footing with larger employers, enabling business owners to offer competitive retirement benefits at an affordable price point. Rebalance also assumes an investment advisor’s role and bears most of the fiduciary responsibilities, reducing a business owner’s liability exposure.

“Small businesses often get punished when it comes to options and fees associated with traditional 401(k) plans,” said Rebalance Managing Director Mitchell Tuchman. “With Better K, small business owners and their employees can reduce their annual 401(k) fees by up to 50%. Not only that, at a time when more employers are getting sued over fiduciary issues related to their 401(k) plan, the added feature of greatly reduced legal risk to the business owner is a huge benefit.”

The company’s experience over the past decade of working with individual investors was the impetus for developing the new product, Tuchman added. 

“Time and time again, clients have come to us with 401(k) plans from previous employers that clearly weren’t developed with their best interest in mind,” he said. “While many companies offer 401(k) plans to their employees, they provide no guidance or investment education. Employees are left to their own devices to select from a laundry list of investment options with no support from a professional financial planner or investment manager.”

Better K was developed by the Rebalance Investment Committee, a group consisting of wealth managers of several successful global investment plans and endowments.

Plan participants can access their accounts 24/7 via a mobile app, website, or telephone support. For more information about Better K by Rebalance, visit their site

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Image: Rebalance

This article, "Better K from Rebalance Is a 401K Plan for Small Business" was first published on Small Business Trends



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