As an investment director, you know how important it is to offer your employees a comprehensive and competitive 401k plan. Not only does it help attract and retain top talent, but it also ensures that your employees are financially prepared for their retirement. In this article, we will explore the top 5 companies offering the best 401k plans in 2021.
1. Vanguard Total Stock Market Index Fund
Vanguard Total Stock Market Index Fund is one of the most popular and highly regarded 401k funds available. With an annual management fee of just 0.05%, this fund offers exposure to over 5,000 publicly traded US stocks, making it a diversified and cost-effective investment option. Additionally, Vanguard offers a range of other investment options, including bonds and international investments, to cater to different risk profiles.
2. Fidelity Total Market Index Fund
Fidelity Total Market Index Fund is another highly respected 401k fund that offers broad market exposure at a low cost. With an annual management fee of just 0.03%, this fund invests in over 7,000 US stocks and bonds, making it a great option for those looking for a balanced portfolio. Fidelity also offers a range of other investment options, including actively managed funds, to suit different investment styles.
3. T. Rowe Price Total Market Index Fund
T. Rowe Price Total Market Index Fund is another popular 401k fund that provides broad market exposure at a low cost. With an annual management fee of just 0.02%, this fund invests in over 5,000 US stocks and bonds, making it a great option for those looking to diversify their portfolio. T. Rowe Price also offers a range of other investment options, including actively managed funds, to cater to different risk profiles.
4. Charles Schwab Target Date ETF
Charles Schwab Target Date ETF is a great option for those looking for an all-in-one 401k solution. With annual management fees ranging from 0.07% to 0.35%, depending on the target date, this fund offers exposure to a range of asset classes, including stocks, bonds, and real estate, in a diversified portfolio. Additionally, Charles Schwab offers a range of other investment options, including individual stocks and mutual funds, to cater to different investment styles.
5. iShares MSCI EAFE ETF
iShares MSCI EAFE ETF is a great option for those looking to invest in international markets through their 401k plan. With an annual management fee of just 0.07%, this fund invests in over 800 companies from 23 developed markets, providing exposure to a range of economies and currencies. Additionally, iShares offers a range of other investment options, including sector-specific funds, to cater to different investment styles.
In conclusion, when it comes to offering a comprehensive and competitive 401k plan, it’s important to consider a range of factors, including fees, diversification, and investment options. By considering these factors, you can help ensure that your employees are financially prepared for their retirement and attract and retain top talent. So, if you’re looking to update your company’s 401k plan in 2021, consider these top 5 companies offering the best 401k plans.
