Saveday’s Fiduciary Responsibility: Safeguarding Your Retirement Investments

At saveday, we take our fiduciary responsibility seriously. When you entrust your retirement savings to us, we prioritize transparency, security, and expertise. Our goal is to provide you with a seamless and reliable investment experience while meeting and exceeding the highest regulatory standards. Let’s explore how we fulfill our fiduciary duty to protect your retirement investments:

Highly Regulated and Transparent:

We’ve integrated the advisory, broker/dealer, and administrative functions into one comprehensive product. This approach allows us to operate under the watchful eye of regulatory bodies such as FINRA, SEC, ERISA, IRS, and DOL. Transparency is a key principle, and you can easily find information about our advisory business and leadership on the SEC’s official website (sec.gov). Likewise, our broker/dealer history and disclosures are accessible on finra.org.

Clearing House Relationship:

To enhance security, saveday doesn’t hold custody of your assets. Instead, we partner with APEX Clearing, a trusted asset custodian serving millions of users and managing billions of dollars in assets. This seamless integration ensures efficient financial operations and provides peace of mind. APEX also serves as a clearing house for other leading FinTech institutions like Stash, SoFi, and FirstTrade.

Asset Security:

When you invest with saveday, your accounts are protected through our custodian clearing company, APEX. We offer SIPC insurance coverage of up to $500,000 per account, along with additional third-party insurance of $1,000,000 per account. Rest assured that your hard-earned savings are in safe hands.

Data Security:

We prioritize the security of your data in line with FINRA and SEC guidance. Our robust data security protocols include annual penetration testing and data encryption. By handling only ACHs from trusted payroll providers and adhering to SOC 2 protocols for asset delivery, we minimize the risk of fraud and ensure the confidentiality of your information.

Diversified Portfolios & Brand Name ETFs:

We follow Modern Portfolio Theory (MPT), a Nobel Prize-winning investment approach. Our diversified portfolios consist of low-cost Exchange-Traded Funds (ETFs) covering major asset classes like US Stocks, International Stocks, US Bonds, International Bonds, and US TIPS. These ETFs, managed by industry leaders, have minimal tracking errors and high liquidity. Our proactive portfolio monitoring and rebalancing strategies align with your long-term goals.

Saveday’s Regulatory Principal:

Barry Mione, our Regulatory Principal, brings over 25 years of experience in creating financially efficient products. With his background as the founder of DLJdirect (now E*Trade) and his expertise gained at Credit Suisse, BMO, and BNY Mellon, Barry ensures that saveday adheres to the highest regulatory standards. You can trust that your retirement savings are in capable hands.

At saveday, safeguarding your retirement investments is our top priority. We strive to provide you with a secure, transparent, and expertly managed investment experience. With our highly regulated platform, trusted clearing house relationship, asset and data security measures, diversified portfolios, and the guidance of our experienced Regulatory Principal, you can have peace of mind knowing that saveday is dedicated to protecting your financial future. Trust us to fulfill our fiduciary duty and help you achieve your retirement goals.

The ABCs of 401(k)s: Different Types Explained

Welcome back, fellow 401(k) newbies! This is Emma again, the broke (but aspiring not to be) young adult that used to know nothing about 401(k)s. Today’s hot topic: Decoding the 401(k) Alphabet Soup. AKA: did you know there were different types of 401(k)s? I didn’t – until recently. 

So join me as I sip some homemade (instant) coffee, and subtly congratulate myself for avoiding that fifth Starbucks run. Let’s unravel this together, shall we? 

5 Types of 401(k)s

  1. Traditional 401(k): Like an old pair of jeans, the Traditional 401(k) is your reliable stable. Money goes in before taxes, grows tax-free, and you pay taxes when you withdraw it during retirement. Keepin’ it simple. 
  2. Roth 401(k): This one is like ordering dessert first – and, hey, I’m not judging. You pay taxes upfront, and then – voila – you withdraw the money tax-free in retirement. It’s a future sweet treat! 
  3. Safe Harbor 401(k): Here’s the referee of 401(k)s, ensuring everyone gets a fair deal. Employers must contribute a set amount for all employees, even if they don’t contribute. This keeps everyone on an equal retirement playing field.
  4. Simple 401(k): This one’s as chill as a late night Netflix binge. It’s designed for small businesses, is easier to manage, and has tax breaks similar to a Traditional 401(k). No bells and whistles.
  5. Solo 401(k): This is the “independent spirit,” if you will. It’s perfect for the self-employed or small business owners with no employees. Cue the lo-fi playlist. 

But here’s the important part (how it applies to you and me). Our ever-reliable saveday handles both Traditional and Roth 401(k)s, making it easy-peasy for us beginners to join the retirement party.

There’s lots to learn about 401(k)s but they’re always here to make it simple. Now you can sit back, relax, and toast to informed decisions making “future us” proud. 

Any more questions? The saveday blog is a lifesaver for retirement saving tips and 401(k) FAQs.

Next up, we’re diving into why starting young on 401(k)s is the advantage our wallets need. See you there!

Happy saving!

-Emma 

401(k) Securities: inside your portfolio with saveday

Let’s be real, 401(k)s can be mind-boggling, especially for newbies like us. But fear not! As a fellow young adult who was once clueless about 401(k)s, I’m here to simplify things for both of us. Today, let’s unravel the mysterious world of securities – those fancy investment options you’ve probably heard about. 

What is a security, anyway?

A security is an investment option that you can hold within a 401(k) account. That includes stocks, bonds, mutual funds, exchange-traded funds (ETFs) and more. 

4 Common Securities: 

  1. Stocks: Owning a Roller Coaster

Imagine owning a slice of Apple or Walmart. That’s what stocks are all about – becoming a part-owner of publicly traded companies. Stocks offer long-term growth potential but can be a bit trickier to predict. They can be a bit of a rollercoaster but over time, your savings tend to come out on top. 

  1. Bonds: Ol’ Faithful

Bonds are like the responsible friend. They’re basically loans you give to governments, municipalities, or corporations. They agree to pay you back on a specific date, and in the meantime, they pay you periodic interest payments. Although there are risks, bonds typically provide a steady and predictable income stream, even if low-yield.

  1. Mutual Funds: Power in Numbers

Mutual funds pool money from multiple investors to create a diversified portfolio of stocks, bonds, or other assets. Professional fund managers oversee them, providing instant diversification.

  1. Exchange Traded Funds (ETFs): Flexibility You Need

ETFs combine the best of both mutual funds and individual stocks, offering diversification and trading flexibility. I found out that’s why saveday chooses to invest in ETFs over mutual funds. Check out why in this post here.  

So there’s the skinny on securities. Stocks offer ownership of publicly traded companies, bonds function as loans to large institutions such as governments, mutual funds diversify investments for you, and ETFs offer diversity with greater flexibility. 

The more I learn about 401(k)s, the more confident I become in saveday. With proven Nobel Prize-winning investment methods like Modern Portfolio Theory, they’ve helped my retirement savings grow. It makes me excited for the retirement possibilities ahead!

If you’re craving more insights, head over to the saveday blog. And stay tuned for the next nugget of knowledge, where I’ll be digging in to the different types of 401(k)s!

Happy Saving,

-Emma

Are IRAs Holding You Back? Meet the Unstoppable Force of a Saveday 401(k)

Welcome, savvy savers, to an insightful exploration of retirement savings options! Today, we’ll dive into the realm of Individual Retirement Accounts (IRAs) and compare them with the game-changing saveday 401(k). By the end of this informative journey, you’ll be equipped with the knowledge to make an informed decision and pave the way for a financially secure future.

IRAs: Versatility with Limitations

Individual Retirement Accounts (IRAs) offer a range of advantages and disadvantages. On the positive side, IRAs provide individuals with flexibility, allowing contributions even outside of employer-sponsored plans. (Meaning you don’t have to get one through your job.) They offer a variety of investment options and can be self-directed, giving you control over your retirement funds. 

However, IRAs have contribution limits that may restrict your ability to save larger sums. Additionally, they lack the benefits of employer matching contributions that can boost your savings potential. 

Saveday 401(k): Revolutionizing Retirement Savings

Now, let’s explore the distinctive features of the 401(k) that sets it apart as an exceptional choice for your retirement savings:

  1. Enhanced Contribution Limits:

401(k)s offer higher contribution limits compared to IRAs, allowing you to save more for retirement. By maximizing your contributions, you can accelerate your savings growth and build a more substantial nest egg. This increased capacity sets the stage for a more financially abundant retirement.

  1. Employer Matching Contributions:

One of the standout advantages of the 401(k) is the potential for employer matching contributions. This means that for every dollar you contribute to your 401(k), your employer may match a portion of it. Employer matches represent free money towards your retirement savings, amplifying your investment potential and boosting your long-term financial security.

  1. Streamlined Administration:

Saveday takes the complexity out of managing your retirement savings. Our user-friendly platform simplifies administrative tasks, automates processes, and offers seamless integration with payroll systems. This streamlined approach saves you time and effort, allowing you to focus on what truly matters – while growing your retirement funds.

  1. Simplified Investment Options:

Saveday uses ETFs, which are like a basket of securities, including stocks and bonds and other assets, that can be traded whenever the markets are open. ETFs combine the diversification benefits of mutual funds with the ease of stock trading. This approach is a simple way to access the financial markets without having to pick assets yourself, and the diversity of the securities enhances your potential for long-term growth and financial success.

When it comes to navigating retirement savings, the choice between IRAs and 401(k)s is a crucial one. While IRAs provide versatility, 401(k)s empower you with enhanced contribution limits, potential employer matching contributions, streamlined administration, and simplified investment options.

Focus your financial future and choose a saveday 401(k) to unleash the full potential of your retirement savings. With saveday, your retirement journey becomes an exciting and rewarding adventure. We look forward to being your trusted partner in building a prosperous future.

Employer Matching Contributions: The Cherry on Top of Your 401(k) Sundae

Welcome back, fellow 401(k) newbies!

Emma here, your friendly guide to all things 401(k). Today, we’re venturing into the exciting world of employer matching contributions. Why? Well, because I recently discovered that my own employer offers this awesome benefit. Everyone told me this was great news. At first I thought, “What’s the big deal”? I decided to look into it further and see how big of a difference matching would make for my portfolio. Turns out, it is a pretty sweet deal after all!

What Are Employer Matching Contributions, Anyway?

Imagine you’re at a party, and someone announces that there’s free ice cream for everyone. I mean, who doesn’t love free ice cream, right? Well, employer matching contributions are like that delectable treat, but for your 401(k) instead. It’s your employer saying, “Hey, we think you’re pretty awesome, so we’ll throw in some extra cash to help you save for retirement.” Now that’s what I call a sweet deal!

How Does It Work?

Your employer sets a “matching formula”, which is usually a percentage of your salary or your own contributions. For example, if your employer offers a 50% match on up to 4% of your salary, it means that for every dollar you contribute up to 4% of your salary, your employer will toss in an extra 50 cents. It’s like getting a bonus on top of your hard-earned savings. Who doesn’t love free money?

The Power of Doubling Your Savings

When your employer matches your contributions, it’s like they’re handing you an extra scoop of free savings. That additional cash will work its magic through your investments and compound interest, generating additional growth and returns without you having to lift a finger. 

So, seize this sweet opportunity and contribute as much as you can to make the most of those matching contributions. I’ve been amazed at how quickly my money multiplies with the extra boost.

Maximize Your Match and Seize the Sun-dae

Employer matching contributions are like the cherry on top of your 401(k) sundae. They’re a sweet boost to your retirement savings without any extra effort on your part. So, make sure to contribute at least enough to take full advantage of your employer’s matching program. Meaning, if they offer a 5% match, contribute the full 5%. 

Don’t leave that ice cream sitting there, waiting to be devoured!

If you have any more questions or want to explore further, head over to the SaveDay blog. They have a toppings bar full of resources to help you make informed decisions and unleash the full potential of your retirement savings. 

Join me next week to take a scoop out of the hidden secrets behind types of securities! 
Keep saving!
-Emma

Understanding Form 5500: Essential Reporting for Your Employee Benefit Plans

Navigating employee benefit plans and ensuring compliance can be overwhelming for small business owners. However, with the right resources and assistance, this process becomes more manageable. In this blog post, we’ll explore the significance of Form 5500, its requirements, and how saveday, as your leading 401(k) provider, can simplify your reporting obligations. Let’s dive in!

Wondering which Form 5500 your business should file? Check out our Form 5500 eligibility post here.

What is Form 5500?

Form 5500 is an annual report required by the IRS, Department of Labor (DOL), and Pension Benefit Guaranty Corporation (PBGC) for employee benefit plans. It provides crucial information about your plan’s activities, financial condition, and overall operations.

Why is Form 5500 important?

Filing Form 5500 goes beyond meeting legal obligations. It ensures transparency, compliance, and protects the interests of both employers and employees. By submitting this form, you demonstrate your commitment to accountability and provide valuable information to government agencies for research and compliance purposes.

What information does Form 5500 require?

Form 5500 requires comprehensive details about your employee benefit plan, including general plan information, service provider details, participant counts, financial data such as assets and liabilities, types of benefits offered, operational activities, and plan funding. It offers a holistic view of your plan’s health and performance.

To learn more about the different types of Form 5500, check out our detailed guide here!

Simplified Compliance Testing

Maintaining the integrity of your 401(k) plan involves conducting compliance testing, which is crucial. At saveday, we understand the complexities involved in this process and offer you support every step of the way. Here’s how saveday can assist your small business:

  1. Fairness and Equal Opportunity:

Saveday ensures that your 401(k) plan operates fairly and provides equal opportunities for all employees to save for retirement. Through comprehensive compliance testing, saveday helps prevent favoritism towards owners or highly compensated employees, fostering a level playing field for all participants.

  1. Expert Guidance:

Saveday’s team of retirement plan experts is well-versed in IRS regulations and compliance testing requirements. They provide personalized guidance, ensuring that your plan meets all necessary guidelines and restrictions.

  1. Plan Optimization:

Saveday helps optimize your plan to ensure compliance while maximizing benefits for your employees. They analyze your plan’s structure, contribution limits, and other factors to create a tailored solution that suits your business needs.

  1. Streamlined Administration:

Saveday’s intuitive platform simplifies plan administration, including Form 5500 reporting. With automated data collection and reporting features, you can streamline the filing process, saving time and effort.

Summary

Filing Form 5500 and conducting compliance testing are crucial responsibilities for small business owners with employee benefit plans. By partnering with saveday, you can simplify these obligations, comply with regulations, and protect the interests of your employees. Transparency, fairness, and adherence to IRS guidelines contribute to the long-term success of your business and the financial well-being of your employees. Stay informed, stay compliant, and continue providing valuable benefits through your employee benefit plans. We’re with you every step of the way!

Power of Investments: Fueling Your Financial Growth

Welcome back to part 3 of my journey as a young adult learning about 401(k)s. Today, we’re diving into the fascinating world of investments and how they can fuel your financial growth. In my previous post, we uncovered the power of compound interest. 

If you missed it, catch up here and join me on this metaphor-laden adventure to unlock the secrets of investments.

Compound interest got me thinking – why do I need to start investing now if I’m not retiring anytime soon? If my contributions compound over time, why couldn’t I just start putting in large amounts of money later on for larger returns? (Aka – couldn’t this be a tomorrow problem? Please?) So, I started to research. 

Turns out, good things really do take time. 

The Orchards of Investment: Cultivating Your Financial Future

Imagine yourself inside a vibrant orchard, teeming with fruit trees that symbolize the boundless potential of investment opportunities. Each tree represents a unique investment avenue within the stock market, signifying the growth of your 401(k) funds. Just like a diligent farmer tends to each tree, carefully selecting the right stocks or funds is vital for nurturing your financial future. Think of it as a quest to uncover the juiciest fruits of investment and cultivate a more prosperous bank account!

Balancing Risks and Rewards: Diversification in Your Investments

Even the most skilled farmers understand the perils of relying solely on one type of tree. Imagine a frost damaging an entire peach crop – it could spell disaster if that’s all they planted. However, by diversifying their orchard with resilient apple trees, they could still harvest enough to sustain their operation for another year.

Diversification is the name of the game! By planting a variety of trees or diversifying your investment portfolio, you can skillfully balance risks and rewards. So, instead of going all-in on mysterious “get-rich-quick” schemes, we spread our investments to create a bountiful financial harvest.

Trusting the Experts: Navigating Investments with Saveday

Just as farmers seek guidance from seasoned botanists, you can rely on investment experts like saveday to navigate the world of investments. Their skilled financial professionals meticulously analyze market trends, identify promising opportunities, and ensure your investment orchard flourishes according to your long-term goals. It’s like having a team of financial geniuses with a green thumb by your side!

Market fluctuations and uncertainties may arise, but with the right strategies and a resilient spirit, you can weather any storm. Trust your investment professionals to guide you through the twists and turns of the market, safeguarding your orchard from unwanted weeds and pests.

Cultivate a Prosperous Future: Investments in Your 401(k)

Embrace this journey and seize the opportunity to nurture your wealth through wise investments in your 401(k). Remember, even the most fruitful gardens encounter challenges. Yet, with a well-crafted investment strategy, you can overcome obstacles and relish the sweet fruits of financial success. Let your 401(k) bloom and flourish like an orchard of limitless possibilities!

Want to learn more about 401(k)s before enrolling? The saveday website has lots of educational resources about 401(k) terms and common questions about 401(k)s available to check out.

See you next week!

-Emma

Unveiling the Power of Compound Interest: How Does a 401(k) Make Money?

Let’s get real for a sec. Ever wondered why you should bother with a 401(k) when there are tempting expenses all around you?

*Cough* another Costco pizza run *cough*. No? Just me?

But hold up, have you ever wondered how a 401(k) actually makes money? Buckle up because in this blog post, we’re diving into the world of compound interest. We’ll unravel the secrets behind growing your 401(k) and show you why investing in your retirement fund can lead to long-term financial bliss. Get ready to be amazed by the wonders of compound interest!

BTW: If you missed last week’s post on How to Claim Your SaveDay 401(k), check that out here!

Understanding Compound Interest: The Magic Behind Your Growing 401(k)

Okay, compound interest might sound like a fancy term, but don’t worry! We’ll make it simple. Imagine your 401(k) contributions as a snowball in your hand. Each little snowflake represents a few cents of your paycheck.

Now, imagine rolling that snowball down a snowy hill when you make your first contribution. As it rolls, it starts picking up more snow, growing bigger and bigger. The more it grows, the more snow it collects. Can you see the potential here?

Contributing to your 401(k) works like adding more snow to the snowball. And guess what? Automating your contributions is like giving that snowball a one-way ticket down the hill, gathering even more snow as it goes. The bigger the snowball gets, the faster it accumulates more snow.

In a nutshell, contributing to your 401(k) means trading a small, instant reward (like those mouthwatering $1.50 pizza slices at Costco) for an epic, future payday.

The Magic of Compound Interest and Your Financial Future

Now that you’ve got the snowball metaphor down, let’s talk about the real magic behind compound interest. It’s like a snowball on steroids! When the money in your 401(k) starts earning interest, that interest gets reinvested, generating even more returns for you. It’s like snowball-ception!

Imagine this: Your modest contributions, combined with the power of compound interest, can snowball into a significant sum over time. Starting early and staying consistent with your 401(k) contributions sets the stage for a solid financial future.

Why Should You Jump on the 401(k) Train?

I get it, managing your finances can be overwhelming, especially when you’re young and broke. But listen up! Building wealth and securing your future are the keys to a comfortable retirement. So, next time you’re tempted to splurge, think about that snowball metaphor or log in to your saveday dashboard for inspiration. Every contribution brings you one step closer to your financial goals and can bring the peace of mind you deserve.

Understanding how a 401(k) actually makes money is like cracking a secret code to financial success. Compound interest is the superhero behind your retirement fund’s growth. So, stay tuned for my next blog post where I’ll unveil another mind-blowing method 401(k)s use to make money! In the meantime, if you’re itching to learn more about 401(k)s, head over to the saveday main website. They’ve got a treasure trove of educational resources on 401(k) terms and FAQs. It’s time to take charge of your future and witness the jaw-dropping power of compound interest!

Want to learn more about 401(k)s before enrolling? The saveday website has lots of educational resources about 401(k) terms and common questions about 401(k)s available to check out.

See you next week!

-Emma

Ramen to Retirement: A Simple Guide on How to Easily Win the Saving Game

Hi, I’m Emma, a recent-ish college graduate just starting out in the “real world.” Join me on my journey from “Ramen to Retirement”: how I’m learning to budget my new corporate lifestyle and set myself up for retirement (starting by enrolling in my 401(k)…who knew?).

Step One: Acknowledging you (I) have a Problem

It all began when my dad read an article about how Gen Z was saving up more in retirement than any previous generation. He asked, “How much have you saved up so far?” Just between us (dear reader), the only thing resembling budgeting that I had done in the past few weeks was stop myself from getting panda express for the billionth time. 

He asked if I had enrolled in a 401(k) through my job. I had not. Don’t blame me, I had no idea how 401(k)s worked! Of course, I knew that I was supposed to have one eventually. I just didn’t know that eventually was really more like yesterday.

A quick perusal of my cluttered inbox revealed that my job had sent quite a few emails about enrolling in my 401(k) – whoops. Those emails explained that a 401(k) is an account that you can only get through your job. It helps you save for retirement by investing money straight from your paycheck into different funds and stocks. The longer you have until retirement, the more potential growth your account can have – perfect! At least I hadn’t waited too late to start saving.

Weird to think it could even be considered starting “late” when retirement seems SO far away, right?

Saveday, the company my employer is sponsoring the 401(k) with, had emailed as well. They promised simple enrollment in fifteen minutes or less. We’ll see about that. Becoming an investing expert in just 15 minutes? 15 minutes ago, I didn’t know what a 401(k) was.

Step Two: Taking Action… (Finally) Enrolling in my 401(k)

Alright, enough excuses. Time to see what this 401(k) situation was all about.

Clicking on the personalized link in saveday’s email took me straight to the enrollment page.

Enrolling in your 401(k) on saveday.com

As a proud full-time adult with my Social Security Number memorized 💁‍♀️, it took less than a minute to start my account. 

From there, I was asked a few questions about when I wanted to retire and how much risk I was comfortable with as an investor. I wasn’t sure how much risk would be best. Luckily, there was an assessment built into the process that helped explain what kind of portfolio was right for me. It also explained the difference between Roth and Traditional accounts and the types of investments saveday makes. I was surprised by how much I learned about retirement planning and investing just by enrolling!

Next, the contribution calculator walked me through deciding what percentage of my paycheck to contribute to my account each month. With saveday, you can change your contribution level at any time, which made me feel better about taking home less in my paycheck each month. Especially when I learned that saving for retirement is like running a marathon. Slow and steady wins the race!

Step Three: “Adulting” Achievement Unlocked!

And, voila! After selecting a contribution percentage, my account was set up and ready to receive contributions. Saveday automatically processes contributions each pay period directly through employer’s payroll. It’s super helpful that the money goes straight from my paycheck into my account.

Now my money is working hard for me, and I don’t have to lift a finger!

SaveDay has a dashboard so you can visually see what your money is doing. It’s pretty fun to look at. The bar graphs and pie charts show how much your money grows each month and where your assets are invested. Even though I’m not the one moving the money around, it makes me feel like a financial guru. (Wolf of Wall Street, who???) 

Realizing I had nearly missed the boat on learning about and enrolling in my 401(k) made me curious about what else I was missing in terms of finance and investing – so I’m going to find out. Come along as I continue taking baby steps toward becoming a full on r/personalfinance-level genius (okay, or at least a zillennial with a diverse investment portfolio).

If you aren’t still sure where to start, or want to learn more about 401(k)s before enrolling, the saveday website has lots of educational resources about 401(k) terms and common questions about 401(k)s available to check out.

See you next week!

-Emma