Wow those are some razor thin margins! If you can pull this off it's going to be both huge (from an AUM perspective) and a big win for the 1,000s of companies that want to setup 401(k) plans but are either scared off by the complexity or fee structure.
I do wonder if profitability can be sustained. With an average account size of $50K, you're looking at $50K x .03% + 9 x 12 = $123 per year of revenue per participant. I'm sure there's a scale factor to dilute the common expenses on your end, but a few hours of customer service (per participant) will eat through all of that.
I do wonder if profitability can be sustained. With an average account size of $50K, you're looking at $50K x .03% + 9 x 12 = $123 per year of revenue per participant. I'm sure there's a scale factor to dilute the common expenses on your end, but a few hours of customer service (per participant) will eat through all of that.
Either way, best of luck, this looks awesome!