.svg)
%20(92).png)
Many American workers find it challenging to save enough for retirement, especially with limited employer assistance. AARP reports that in 2022, 57 million individuals aged 18 to 65 working in the private sector lacked access to traditional pensions or retirement savings plans.
Also, research from BrightScope revealed that small businesses usually incur 401(k) fees five times higher than those paid by Fortune 500 companies. This disparity highlights a significant financial burden unfairly borne by smaller enterprises.
However, a new generation of 401(k) providers has emerged to tackle these challenges. Among them, Human Interest and Guideline stand out.
These providers give access to high-quality retirement plans by offering competitive pricing and innovative features, making retirement savings more accessible to small-sized businesses and startups.
However, despite their shared goal of simplifying 401(k) administration, these providers differ in several areas, including pricing, investment options, user experience, and customer satisfaction.
In this article, we will provide a comprehensive comparison of Human Interest vs. Guideline, including their fee structures, investment options, technological offerings, and more.
What is Human Interest?
Human Interest was founded in 2015 to make high-quality retirement plans accessible to small and medium-sized businesses.
Recognizing the gap in the market where traditional 401(k) providers primarily catered to large corporations, Human Interest democratizes retirement savings by offering affordable, user-friendly 401(k) plans to smaller enterprises.
The provider is driven by the vision of ensuring that every employee, regardless of the size of their employer, has access to a secure financial future. The platform also eliminates the complexity and high costs of 401(k) plans, making retirement planning attainable for businesses of all sizes.
Features
Human Interest targets small to medium-sized businesses historically underserved by larger financial institutions. The company’s features include:
Easy Setup and Administration
The platform is designed to simplify the setup process with minimal paperwork and easy-to-understand steps, reducing the administrative burden on business owners.
Employee-Focused Benefits
The plans include various investment options tailored to meet the needs of employees, from those just starting their careers to those nearing retirement.
Integration and Automation
Human Interest integrates seamlessly with popular payroll providers, automating contributions and compliance tasks to minimize manual intervention and reduce errors.
Compliance Support
Comprehensive compliance and fiduciary services help businesses stay in line with regulatory requirements, offering peace of mind and reducing legal risks.
Pros
- Human Interest offers transparent and competitive pricing, with no hidden fees or setup costs for employers.
- The platform is known for its intuitive design, making it easy for employers and employees to navigate and manage their retirement accounts.
- Provides various investment choices, including low-cost index funds and target-date funds, catering to different risk profiles and preferences.
- Handles compliance tasks such as annual testing and IRS reporting, reducing administrative burden for employers.
- Offers tools and resources to educate employees about retirement planning, encouraging participation and contribution.
Cons
- Some employers may find the customization options relatively basic compared to more flexible providers.
- While generally responsive, some users have reported occasional delays or challenges in obtaining timely support.
- Integration with third-party payroll or HR software may not be as seamless as with other providers, potentially requiring manual data entry.
- Some reviews suggest that as businesses grow larger or more complex, Human Interest's solutions may not scale as effectively as other providers.
What is Guideline?
Guideline was founded in 2015 by Kevin Busque, Mike Nelson, and Jeremy Cabral. The company was created to disrupt the traditional 401(k) industry, which was often characterized by high fees and complex management.
By leveraging technology and automation, Guideline simplifies the process of offering retirement plans for small and medium-sized businesses, making it more accessible and affordable.
Guideline focuses on creating a retirement that Americans can look forward to by providing easy, affordable, and fully managed 401(k) plans. The company strives to ensure straightforward retirement savings for employers and employees, removing the common barriers of high costs and administrative burdens.
Features
Guideline targets small to medium-sized businesses that may not have the resources to manage traditional 401(k) plans. The company's fully automated platform is designed to minimize the workload for employers while maximizing the benefits for employees.
Its features include:
Automated Plan Administration
Guideline handles most of the administrative tasks, including compliance testing, record-keeping, and filing required government forms.
Low, Transparent Fees
Guideline offers a simple and transparent fee structure with no hidden costs. They charge a flat monthly fee and a low per-participant fee, with no asset-based fees.
Integration with Payroll Providers
Guideline integrates seamlessly with popular payroll providers, ensuring contributions and compliance are managed effortlessly.
Diverse Investment Options
Employees can choose from low-cost index funds and managed portfolios tailored to different risk preferences and retirement goals.
Pros
- Guideline is known for its transparent fee structure with low costs, making it affordable for small businesses.
- The platform is user-friendly, simplifying plan administration and investment management.
- Guideline handles compliance tasks, reducing administrative burden and ensuring regulatory adherence.
- It offers a range of investment options, including index funds and ETFs, catering to diverse employee needs.
Cons
- While it offers different investment options, the selection may not be as extensive or customizable compared to some other providers.
- Some users have reported mixed reviews regarding customer service quality and responsiveness.
- Integrating Guideline with existing payroll systems or other HR software may pose challenges, depending on the setup and compatibility.
- The plans may not offer as much flexibility in terms of employer contribution matching or customization compared to competitors.
Human Interest vs. Guideline: In-Depth Comparison
Investment Options and Performance
Human Interest
Types of Investment Options
Human Interest offers different investment options, including low-cost index funds, mutual funds, and ETFs. The platform emphasizes simplicity and transparency, making it easy for employees to understand and manage their investments.
In addition, Human Interest allows for customized investment portfolios, enabling employees to tailor their 401(k) investments to their individual risk tolerance and retirement goals.
Customization Options
Human Interest excels in offering customizable investment options. Employees can choose from pre-built portfolios designed by financial experts or create their portfolios by selecting individual funds.
This flexibility allows for personalized retirement strategies, accommodating conservative and aggressive investment styles.
Guideline
Types of Investment Options
Guideline also offers a variety of investment choices, including index funds, mutual funds, and target-date funds.
Target-date funds, which adjust the asset allocation based on the employee’s expected retirement date, are popular for their hands-off approach, providing a simple and effective way to save for retirement.
Customization Options
Guideline offers several pre-designed portfolios that cater to different risk preferences, from conservative to aggressive. Employees can select a portfolio that matches their retirement timeline and risk tolerance.
Although customization options are slightly less extensive than Human Interest, including target-date funds provides a straightforward investment solution that adjusts automatically as the retirement date approaches.
User Experience and Technology
Human Interest
User Interface and Platform Usability
Human Interest offers a user-friendly interface designed to simplify the 401(k) management process for both employers and employees.
The platform features an intuitive dashboard that provides clear navigation and easy access to important information such as account balances, investment options, and plan performance. The simplicity of the design makes it accessible even for users who may not be tech-savvy.
Customer Support and Educational Resources
Human Interest provides robust customer support through various channels, including phone, email, and live chat. Their support team is known for being responsive and knowledgeable, helping users resolve issues promptly.
In addition, the platform offers a comprehensive library of educational resources, including articles, webinars, and FAQs, aimed at helping users understand their retirement plans better and make informed decisions.
Guideline
User Interface and Platform Usability
Guideline is known for its clean and modern user interface that emphasizes ease of use and accessibility. The platform's dashboard is straightforward, allowing users to quickly access their account information, investment options, and plan documents.
The design prioritizes functionality, ensuring that even those with minimal technical skills can navigate the system with ease.
Customer Support and Educational Resources
Guideline offers strong customer support through email, phone, and a comprehensive online help center. Their support team is praised for its efficiency and helpfulness.
The platform also includes an extensive array of educational resources, such as guides, articles, and video tutorials, designed to help users understand the intricacies of 401(k) plans and make well-informed financial decisions.
Plan Administration and Compliance
Human Interest
Human Interest is designed to simplify the complexities of 401(k) plan administration for small and medium-sized businesses. The setup process is streamlined, allowing companies to get started with minimal hassle.
Employers can easily manage their plans through Human Interest's intuitive online platform, which includes automated features for plan administration tasks such as contributions, distributions, and reporting.
One of the unique features of Human Interest is its robust compliance support. The platform ensures that all plans adhere to IRS and Department of Labor regulations, reducing the risk of costly compliance errors.
Human Interest acts as a 3(16) fiduciary, which means it takes on significant administrative responsibilities and legal liabilities, including filing Form 5500 and conducting non-discrimination testing. This fiduciary service is a critical advantage for employers who want to minimize their administrative burden and ensure compliance.
In addition, Human Interest seamlessly integrates with several payroll providers, which helps streamline the process of managing employee contributions and reduces the risk of errors. This integration ensures that payroll changes are automatically reflected in the 401(k) plan, enhancing accuracy and efficiency.
Guideline
Guideline also focuses on making 401(k) plan administration straightforward and accessible, especially for small businesses. The platform offers an easy setup process, with guided steps that help employers configure their plans quickly.
Ongoing administration is managed through Guideline's user-friendly interface, which automates many routine tasks such as employee enrollment, contribution processing, and compliance reporting.
Guideline provides strong compliance support, acting as a 3(38) investment manager and a 3(16) plan administrator. This dual fiduciary role means that Guideline takes on significant responsibilities, including selecting and monitoring investment options, handling compliance testing, and preparing and filing required forms like Form 5500.
Furthermore, Guideline integrates with various payroll systems. This integration ensures that contributions are deducted and processed accurately and timely, reflecting changes in payroll without manual intervention.
Guideline’s system updates automatically with payroll data, which enhances efficiency and reduces the likelihood of errors.
Pricing
Human Interest
Human Interest offers 3 pricing tiers as shown in the image below:
Guideline
Guideline also offers 3 pricing tiers. The details of each plan are shown in the image below:
The table below provides a side-by-side comparison of Human Interest vs. Guideline, highlighting their main features and differences to help you choose the right 401(k) provider.
Human Interest vs. Guideline: Which 401(k) Provider Should You Choose for Your Startup?
Here we summarize the comparison between Interest and Guideline to help you choose the right 401(k) provider for your startup:
Pricing and Fees
Human Interest offers transparent pricing with no setup fees and a flat monthly fee per participant. Its asset-based fee structure is competitive and often favored by startups seeking predictable costs.
Also known for transparent pricing, Guideline does not charge setup fees and offers a per-participant monthly fee. The asset-based fee structure is straightforward, and appealing to startups looking to manage costs effectively.
Investment Options and Performance
Human Interest provides several investment options, including low-cost index funds and target-date funds. The platform's performance history and customization options make it attractive for startups focused on offering diverse investment choices to employees.
Guideline offers a range of investment options, including socially responsible investment choices. Its performance track record and simplicity in investment selection appeal to startups wanting to provide competitive retirement benefits without complexity.
User Experience and Technology
Human Interest has an intuitive user interface and mobile app for easy access and management. Its customer support and educational resources cater well to startups needing accessible support and guidance.
Guideline features a user-friendly platform with a focus on automation and integration. Its mobile app and customer support are geared towards startups seeking efficient plan management and responsive assistance.
Plan Administration and Compliance
Human Interest simplifies plan administration with integrated payroll solutions and robust compliance support. Startups benefit from streamlined processes and fiduciary services that ensure regulatory adherence.
Guideline offers streamlined plan setup and administration, coupled with comprehensive compliance support. Its integration capabilities with payroll providers make it a practical choice for startups seeking efficiency in administrative tasks.
Ultimately, your choice depends on your startup's specific needs, preferences, and priorities in providing a robust 401(k) plan for your employees' future financial security.
Wrapping Up
The right 401(k) provider directly impacts retirement savings and the financial well-being of an employee and employer. A detailed comparison of Human Interest vs. Guideline reveals that both providers have several differences and similarities, each focusing on different business needs and priorities.
Human Interest stands out with its robust investment options and customization capabilities, making it ideal for businesses that want diverse and tailored retirement plans.
On the other hand, Guideline offers competitive pricing and a streamlined setup process, which is beneficial for small to mid-sized businesses looking for a cost-effective and straightforward solution.
The 401(k) provider you choose depends on your startup’s needs and priorities. If you value a wide range of investment options and personalized support, Human Interest may be the better fit. However, if cost-efficiency and ease of administration are your main concerns, Guideline could be the ideal choice.
FAQs
What are the biggest differences between Human Interest and Guideline?
Here's a quick comparison:
- Guideline generally has lower fees compared to Human Interest, especially for smaller plans.
- Human Interest offers a slightly wider range of investment options for your 401(k) plan.
- Reviews are more positive regarding Guideline's customer service responsiveness and support.
Is Guideline a legit company?
Yes, Guideline is a legitimate company since it is a registered financial technology company offering 401k plans for businesses. They have positive aspects like:
- Low Fees: Guideline is known for its low fees compared to traditional providers. This can be a major benefit for businesses and employees.
- Easy to Use: Users often praise the user-friendly interface and hassle-free management for businesses.
- Customer Support: Positive reviews mention prompt and helpful customer service representatives.
How does a 401k work?
A 401(k) is a retirement savings plan offered by many employers in the United States. It allows you to set aside a portion of your paycheck before taxes are taken out. This money is then invested and grows over time, ideally building a nest egg for your retirement. Here's a breakdown of how it works:
- You choose a percentage of your paycheck to contribute to your 401(k). This contribution is automatically deducted from each paycheck.
- There's a limit on how much you can contribute each year (in 2024, it's $22,500 for those under 50).
- Many employers offer a matching contribution. This means they'll contribute some money to your 401(k) based on your contributions.
What factors should I consider when choosing between Human Interest and Guideline?
Consider your company size, budget, desired investment options, and the customer support needed. It's also important to factor in any employer match you might offer and how it integrates with the provider's platform.
