Guideline Competitive Analysis

Part
01
of one
Part
01

Guideline Competitive Analysis

Key Takeaways

  • Six additional true competitors of Guideline based on companies that provide 401(k) services to small businesses and startups are Employee Fiduciary, Human Interest, Simply Retirement (by Principal®), ForUsAll, 401GO, and Ubiquity.

Introduction

  • The research provides an analysis of Guideline and its identified competitors, including a brief overview of the companies, sizes, 401(k) services, and their competitive advantages.

Guideline

401(k) Plans

  • Its 401(k) services include Traditional 401(k) & Roth 401(k), Safe Harbor, Profit sharing, and Matching options.
  • Guideline offers three different 401k plans for small businesses and other businesses: Core, Flex, and Max.

Competitive Advantages

  • With API payroll integration, Guideline is able to track 401(k) eligibility, securely sync employee data, and process deductions, thereby saving time and hassle each pay run.
  • Guideline's investment portfolios rebalance automatically to aid businesses to remain on track for retirement.
  • The company offers 40+ index funds from Vanguard and other low-cost providers. Its managed portfolios have blended average fund fees below 0.07%.
  • It partners with Benefit Trust Company to provide custodial services. This includes executing trades, processing transactions, and safeguarding plan assets.
  • It serves as the user's recordkeeper to track their 401(k) plan’s balances, transactions, deferrals and prepare annual reports for no extra fee, including Form 5500 and 1099-R.

Vestwell

  • A website address to Vestwell is provided herein.
  • Vestwell is a cloud-based modern recordkeeping platform rendering the underlying infrastructure required to power workplace savings programs, leading with the 401(k), at scale.
  • The platform was built by industry experts and an army of technologists and developers and helped people more easily administer, offer, and access workplace investing programs.
  • This is made manifest by "partnering with financial institutions - think wirehouses, RIAs, asset managers, insurance providers, and the like - TPAs, payroll providers, and even fellow recordkeepers, to give them the benefits of running their own modern-day recordkeeper without the investment of building and managing one."
  • The company was established to be the de facto platform for all workplace savings and investing, starting with the 401(k).

401(k) Plans

Competitive Advantages

Human Interest

401(k) Plans

Competitive Advantages

  • Human Interest takes the hassle out of managing a company’s 401(k): It synchronizes to a company's payroll, processes contributions, and handles all of the compliance testing and IRS paperwork.
  • With Human Interest, businesses get affordable plans, low-cost funds, and absolutely zero transaction fees.
  • Employees can easily check their balance, change contributions, and update portfolio preferences. It’s very easy to use the Human Interest platform, and the company sees 2x the industry average participation rate.
  • It puts funds in a diversified, low-cost portfolio and rebalances quarterly. Employees in search of more flexibility can decide and manage their own funds.

Employee Fiduciary

  • A website address to Employee Fiduciary is provided herein.

401(k) Plans

  • The company offers 401(k) Plan Setup and 401(k) Administration.
  • Under the 401(k) Plan Setup, Employee Fiduciary consultants enable businesses to determine the best 401(k) plan for them.
  • A 401(k) recordkeeper is essentially the bookkeeper of 401(k) plans. A recordkeeper’s responsibilities include allocating the assets of your plan to participant accounts and executing participant trades.
  • Employee Fiduciary offers safe harbor, profit sharing, new comparability, and other defined contribution plans.
  • The company services several retirement plans such as 401(k) / Profit Sharing Plans, Money Purchase / Target Benefit Plans, ERISA 403(b) Plans, ESOPs (recordkeeping-only), and Defined Benefit and Cash Balance Plans (recordkeeping-only).

Competitive Advantages

ForUsAll

  • ForUsAll was founded in 2012 by the same team that helped build the largest RIA (Edelman Financial Engines), the largest registered investment advisor in the country.
  • Prior to founding ForUsAll, the team managed $50+ billion in 401(k) assets for Fortune 500 companies and understands what is required to drive participant success, lower fiduciary risk, and reduce fees.

401(k) Plans

Competitive Advantages

  • The company has been in the 401(k) industry for over 30 years with a track record of creating solutions to engage employees, increase savings rates, and streamline administration and compliance. Some of its work has even been patented.

Simply Retirement by Principal®

401(k) Plans

  • Simply Retirement offers six (6) different 401(k) plans: Simply Retirement by Principal® 401(k) plan, 401(k) plan, 403(b) plan, SEP IRA, SIMPLE IRA, Defined benefit (pension) plan.
  • A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a simpler version of a 401(k) plan that works like a traditional IRA (Individual Retirement Account).
  • The 403(b) plan 403(b) plans are used by tax-exempt businesses, religious organizations, school districts, and governmental organizations. The law allows these organizations to be exempt from certain administrative processes that apply to 401(k) plans.
  • A Simplified Employee Pension (SEP) Individual Retirement Account (IRA) allows small business owners to save toward retirement.

Competitive Advantages

  • The small business retirement plan proposals can be created in minutes without investing a lot of time and effort.
  • The company has "paired decades of experience in retirement solutions and investments from Principal with the simplicity and cost-effectiveness of the Ubiquity Retirement + Savings® online recordkeeping platform, breaking down barriers like cost and complexity so you can help more small businesses offer their employees a way to save for retirement."
  • It is a true 100% digital process that lets businesses complete every step of the process online, when and where it’s convenient for them. Beginning with the plan design and e-signing documents to census and onboarding, all required steps occur in the Simply Retirement by Principal® digital platform.
  • Its investment options offer strong performance with a competitive return, helping make the most of employees’ contributions and any matching contributions your client provides as a business owner.
  • The company combines 75+ years of expertise in retirement solutions and investments from Principal4 with the simplicity and cost-effectiveness of the Ubiquity Retirement + Savings® recordkeeping platform and services.

401GO

401(k) Plans

Competitive Advantages

  • 401GO claims to be a one-stop-shop for all aspects of 401(k) designed for effectiveness to make it affordable for small businesses. It also has the power and flexibility needed by larger organizations for more complex needs.
  • It only takes 8 minutes to set up. Most plan providers take an average of 8 weeks to set up.
  • Every 401GO plan comes with the company's Guided Portfolio Design. 401GO designs and suggests a customized portfolio based on each participant’s needs, investing goals, and several other factors like the time until retirement and risk tolerance.
  • 401GO integrates with many major payroll providers to reduce the amount of work that goes into handling and reporting employee deferrals with each pay run.

Ubiquity

401(k) Plans

  • Ubiquity offers three (3) major 401(k) plans: Solo 401(k), Small Business 401(k), and Small Business Retirement plan.
  • A solo 401(k) is a retirement savings plan for a self-employed or sole proprietor business owner (and spouse, if applicable) and is also referred to as Single(k)®, self-employed 401(k), Individual 401(k), or one-participant 401(k).
  • A small business 401(k) is a 401(k) plan for organizations with one to 100 employees. The Ubiquity small business 401(k) plans offer unparalleled benefits to both business owners and employees who partake in the plan.
  • A retirement plan also provides tax benefits to those who participate in the plan. Contributions and investment earnings are not taxed until taken out of the plan.
  • The small business retirement plan is further divided into SEP Plan, SIMPLE IRA Plan, and Small Business 401(k) Plan.
  • Other 401(k) resources offered by the company include Safe Harbor 401(k) Plans, Roth 401(k), 401(k) Calculator, among other resources.

Competitive Advantages

  • Ubiquity retirement sales consultants each have over 10 years of experience in small business retirement planning. They’ll walk you through finding and setting up the right plan for your needs. And they’ll explain things simply and without any jargon.
  • The company consultants only require 15 to 30 minutes to evaluate the best plan for a small business based on its goals.
  • Ubiquity charges low, flat fees and doesn’t ever charge fees based on the size of your retirement plan.
  • The company provides recommendations to reduce business tax liability and minimize the fixed costs of administering your plan.
  • As one of the first flat-fee-for-service small business plan providers across the 50 US states, Ubiquity delivers peace-of-mind with zero hidden fees.
  • With Ubiquity, small businesses can qualify to gain about $16,500 in tax credits over 3 years by starting a qualified retirement plan with auto-enrollment.

Research Strategy

For the purpose of this research on Guideline competitive analysis, we have leveraged the information provided on each company's website to provide the required information. Of the eight companies analyzed, only Guideline, Ubiquity, and Human Interest provided information about the size of businesses under their care.

Dive deeper

Only the project owner can select the next research path.
Need related research? Let's launch your next project!
Sources
Sources