Employee Fiduciary Announces Subsidiary

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Frugal Financial Delivers low cost, fiduciary-grade investment advice to 401k plans

Low Cost Investment Advice

...401k sponsors delegate their plan-level investment decision making to us...

Employee Fiduciary has announced the launch of Frugal Financial Retirement Plan Services, LLC (“Frugal Financial”), a wholly-owned subsidiary. Frugal Financial is a registered investment advisor, serving 401k and other types of retirement plans exclusively. It’s Frugal Financial’s mission to complement and extend Employee Fiduciary’s core values and services, providing low-cost, fiduciary–grade investment advice to its clients.

“As an ERISA 3(38) fiduciary, 401k sponsors delegate their plan-level investment decision making to us, reducing their fiduciary liability. Many sponsors lack the expertise to manage their investment fiduciary responsibilities. We can assume that responsibility at a low cost.” President and CEO, Eric Droblyen.

Frugal Financial 3(38) fiduciary services include:

  • Investment Policy Statement (IPS) preparation
  • Selection, monitoring and benchmarking of plan investments
  • Qualified Default Investment Alternative (QDIA) selection
  • Preparation of investment-related notices required under ERISA
  • ERISA 404(c) compliance
  • A fiduciary checklist to assess the satisfaction of fiduciary responsibilities

Frugal Financial fees are 0.10% annually, subject to a $1,000 minimum. When Frugal Financial services are added to Employee Fiduciary services, a $1M 401k plan could pay less than 0.50% of plan assets (50 bps) annually for:

  • Custody
  • Recordkeeping
  • Third-Party Administration (TPA)
  • 3(38) fiduciary
  • Vanguard investment expenses

Focusing on smaller employer plans, Frugal Financial acts as an efficient conduit to the market, allowing investors to achieve market returns with minimal expenses. In addition, the firm recommends fiduciary best practices which, when diligently applied, allow 401k sponsors to easily satisfy their fiduciary responsibilities.

All Frugal Financial employees have extensive experience in retirement plan recordkeeping and administration. “We believe this experience, together with the firm’s investment approach, uniquely positions the firm to serve the small business 401k plan market.” Eric Droblyen, CEO and President.

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Holly Roussel-Godfrey
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Employee Fiduciary
since: 05/2014
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