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Comment by busque | Hacker News Reader

Hi, I'm the CEO of Guideline. I think you might have fallen into the same trap I did a few years ago. All 401(k) plans are not created equally, and it's not just about the fund menu etc. Vanguard for instance, is not a fiduciary. They will not help you keep your plan in compliance, they will not educate your employees. They don't even do their own record keeping. You will need to pay for those services separately. We are making great 401(k) plans attainable for the small business while focussing on the long term success of your employees.

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Thank you for replying. I did underestimate your company.

I think it would be useful to add to your website a prominent comparison to the entrenched players. I'm probably not the only person to fail to appreciate your advantages over Vanguard, based on your current website (though perhaps I overlooked something). A convincing comparison to the quintessential low-cost provider would deliver quite a powerful message.

Appreciate that feedback. We are really focussed on the product and have not spent enough time on the marketing site. I'll pass on this feedback for sure!

So you're saying that instead of (for instance) signing up with both Principal (who has the funds) and also TRA (who ... does something) ... a firm just signs up with you and it's a one-stop shop ?

What is the total fee load for your plain old S&P 500 index fund ?

> What is the total fee load for your plain old S&P 500 index fund ?

https://www.guideline.com/pricing

They're just Vanguard + 0.03% custodial fee. So whatever institutional version of VFIAX they can get + 0.03. Maximum 0.08% if they only get the retail investor version (0.05%), minimum 0.03%.

I am waiting on the hammer to fall on 401k. Here is the current situation.

401k is a horrible idea, and its a good way to funnel money from savers. After 2000 & 2008, do you really want to trust the same people who needed bailed out? Yet, 401k is using those institutions to do business with.

401k is a wolf in sheeps clothing. The next down turn, who knows, governments have been known to seize retirement funds. What happens if US Congress decides to do that to save the nation? Look whats happening in the world, it has already happened in the last year in other nations.

My advice, stay out of 401k, put your money where it has intrinsic value, and not a number on a computer screen.

There is no place that'll provide the returns the equities market does, except perhaps a heavily managed rental property.

I strongly disagree.

YTD http://www.barchart.com/commodityfutures/leaders?type=pl&cat...

12 Month looks similar.

Silver, Soybean, Sugar, Gold are up significantly.

Selecting a short time scale is not representative of anything. 401(k)s are meant to be long-term investment vehicles for retirement.

Let's say I've nearly worked 30 years and I'm hoping to retire soon. Had I put my money all in silver, the top performer in your YTD chart, I would have over tripled my initial investment. However, putting my money in the S&P500 would've given me a 10x return over the same period.

When it comes to buying equities or commodities, I typically prefer equities. Companies can innovate and grow and create new value that didn't exist. But a pile of precious metal today is the same pile of metal tomorrow.

Essentially all assets, except perhaps gold^H^H^H^H commodities in your physical posession, are numbers on a computer screen. Even land ownership is controlled by records kept by local governments.

This is clearly true, but the scenarios in which it becomes a problem vary. In an isolated case of data loss/corruption that leaves the title to your home up in the air, there would be other sources of data to appeal to (records at lenders who had paper on the property, etc.) In more apocalyptic scenarios, even your on-hand physical assets won't be good for much (you can't eat gold).

Sure, but the person I was talking to wasn't talking about data loss. He was talking about asset seizure by the state. If they're going to seize my 401k they're just as likely to size my rental property.

And ya, in apocalyptic scenarios the value of assets could swing wildly. I've seen Mad Max though. I'm not buying gold, I'm stockpiling guzzoline.

Intrinsic value is not a thing. Stuff only has value if others are willing to buy it. What others want, and what prices they are willing to pay, change all the time with market conditions and consumer tastes.

Here's an interesting hypothetical of someone who always invests over their life st the worst possible time (right before crashes). He still comes out pretty well

http://awealthofcommonsense.com/2014/02/worlds-worst-market-...

What's the alternative? You can contribute to an IRA instead, but the limits are much lower. Any other investment products on the market will not be tax-advantaged.

The 401(k) was created by Congress (it's even named after the section on the Internal Revenue Code that created it) and that's where its benefits come from. The only way a similar plan would ever emerge is if Congress decides to create that too.

> The next down turn, who knows, governments have been known to seize retirement funds. What happens if US Congress decides to do that to save the nation?

How would the US government do that? Your 401(k) money is held by a private bank; the government would literally have to seize private property, which on this scale and circumstances is completely unprecedented in US history.

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