January 10, 2012
--- Schwab Retirement
Plan Services Inc. launched Schwab Index Advantage, a 401(k) plan offer designed to lower costs, simplify investing and help workers better prepare for retirement. ---
The program is
focused on simplicity and includes an independent advisory service that
develops a savings and investment program with the goal of increasing savings
for individuals at retirement.
To help drive costs
down, Schwab Index Advantage provides index mutual funds with low operating expenses.
“It’s time to rethink
the 401(k) plan and pay closer attention to workers who, now more than ever,
are worried about their retirement savings, are often confused by their plan’s
complexity and may be missing out on the help they need to save and invest for
retirement,” said Jim McCool, executive vice president and head of
Institutional Services at Schwab.
The program also includes
an interest-bearing, FDIC-insured savings feature through Schwab Bank called
Schwab Bank Savings that serves as a capital preservation option in an
employee’s 401(k) account.
With Schwab Index
Advantage, employers, fiduciaries and their consultants will be able to create
a 401(k) investment fund lineup comprised exclusively of index mutual funds
with low operating expenses, including Schwab funds, as well as funds from
other large, well-known fund providers. These funds are designed to track
established market indexes and represent a range of equity sizes, styles and geographies,
as well as fixed-income and other asset classes.