Last update of 1/1/21

General disclosure

Human Interest is an affordable, full-service 401(k) and 403(b) provider that makes it easy for small and medium-sized businesses (“Plan Sponsors”) to help their employees (“Participants”) save for their retirement in retirement plans (“Plans”). The company was founded in 2015 to ensure that people in all lines of work have access to retirement benefits and a path to financial independence. Headquartered in San Francisco, Human Interest has helped thousands of businesses and their employees across America. For more information, please visit humaninterest.com.

The content provided here has been prepared for general informational purposes only, and is not intended to provide, and should not be relied upon for tax, legal, or accounting advice.  Unless indicated otherwise, the content is not an offer of investment advisory services with regard to securities and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for their own particular situation before making any investment decision.

Retirement and investment advisory services are only provided to clients who have signed appropriate documents to enter into an agreement with Human Interest. You acknowledge that Human Interest does not provide tax, legal, or accounting advice, and you should obtain your own tax, legal, and accounting advice before engaging in any transaction. Plan Sponsors should take independent steps to validate the tax, legal, or accounting considerations of hiring any service provider for the Plan, obtaining guidance on any Plan document (or amendment thereto), and for any issues pertaining to design, implementation, or operation of a Plan. Participants should take independent steps to validate the tax, legal, or accounting considerations of using a Plan or making investment decisions.

Advisory services disclosure

Investment Advisory services are provided to clients who have signed an agreement with Human Interest Advisors LLC, a subsidiary of Human Interest Inc. (together, “Human Interest”). Human Interest Advisors is a registered investment adviser with the Securities and Exchange Commission("SEC"). SEC registration does not imply a certain level of skill or training, nor an endorsement by the SEC. Investing involves risk and may result in loss. Past performance is no guarantee of future results, and expected returns may not reflect actual future performance. Additional Information can be found in the company’s Form ADV available at https://adviserinfo.sec.gov/  

Fee disclosures

For information about Human Interest’s pricing, please refer to our Pricing Page, which describes the fees charged for administrative and advisory services. Fees for investment advisory services are billed according to the Terms of Service to Plans and recorded at the participant account level based upon a percentage of total assets under management. Fees are typically up to 0.50% annually, and include custody fees.

While Human Interest will typically charge only the above fees, additional fee or cost scenarios could occur, and include the following:

  1. Mutual fund annual operating expenses are established by each individual mutual fund and disclosed in the relevant prospectus, as well as through fee disclosures provided to Participants. Mutual fund fees are embedded in each mutual fund’s net asset value and are borne equally by each fund shareholder, including those plan participants who elect to purchase shares. The average fee for the mutual funds available through the Human Interest model is .07% per year, but is subject to change based upon the expenses set by each particular mutual fund.  

  2. Plan Sponsors who elect 3(21) services and select their own mutual funds for their Plan may find that those funds they select carry additional types of fees or expenses.

  3. In some instances Plan Sponsors or Participants may elect services from financial advisors or other professionals which cause additional fees.

  4. Certain mutual funds charge a 12b-1 fee to Plans.

  5. One mutual fund on the Human Interest platform charges a .50% purchase fee (which is currently paid by Human Interest).

  6. Additional fees may be charged to a particular Participant by a mutual fund with respect to short-term trading or redemptions that exceed the fund’s established guidelines. 

Disclosures about relationships, endorsements, and testimonials

Human Interest maintains relationships with Plan Sponsors, Participants, and other third-parties who have an economic relationship with Human Interest, may from time to time make statements or provide information about Human Interest, and may receive cash or non-cash compensation from Human Interest in exchange for providing the statements or information. From time to time, Human Interest may also provide information about its services and products which is created or supplemented, in whole or in part, using the statements or information that has been provided by one or more current clients or other third parties and which is used to solicit or refer current or potential clients to Human Interest or otherwise indicates approval, support, or recommendation of, or describes the experience with, Human Interest (“Solicitation Information”). There could be material conflicts of interest created by the use of Solicitation Information, particularly as cash or non-cash compensation may be provided by Human Interest to the party providing the statements or information about Human Interest. When considering these statements and information, and when evaluating Human Interest’s advertising, products, and services, you should be aware that the relationship creates a potential conflict of interest which could create an incentive for the statements or information to be presented in a fashion that is favorable to Human Interest.

Solicitation Information provided by Human Interest clients will typically not involve a direct cash fee paid to the client, but the compensation arrangement will instead be of a de minimis nature in the form of small gift cards, tchotchkes, or other tokens of appreciation. The cost of these incentives will be paid directly by Human Interest and will not be charged to any of Human Interest’s clients. While Human Interest expects the good faith value of these items to remain below $1,000 on a rolling 12-month basis, it is possible that in certain instances a client may be in a position from a relationship perspective to seek to negotiate a reduced investment advisory fee which could exceed this amount in value. Human Interest also will from time to time request and receive approval from certain clients for use of the client’s logo and/or other intellectual property, hyperlinks, or other shared content. As a result, the use of this Solicitation Information creates a potential conflict of interest because the client may seek to portray Human Interest in a favorable light in order to receive or enhance beneficial treatment in the relationship.

Solicitation Information provided by third parties will, in addition to the type of de minimis relationship noted above, also from time to time involve direct cash compensation which is paid to third parties who are participating in an agreement with Human Interest to refer business opportunities (“Referring Partner”). While a Referring Partner and its representatives are not affiliated with or employed by Human Interest, the agreement provides for the Referring Partner to receive fees that are a percentage of Human Interest’s recordkeeping and administrative fees (“Referral Fees”). The cost of incentives and Referral Fees will be paid directly by Human Interest and will not be charged to any of Human Interest’s clients.  The Referring Partner, in introducing and/or recommending Human Interest, has a potential conflict of interest with regard to both its relationship with Human Interest and with regard to the Referral Fees and/or incentives that the Referring Partner and/or its representatives receives in connection with making introductions and/or recommendations. The Referring Partner and Human Interest participate in an integrated platform for employers that enables the sharing of employee/participant information for payroll and employee benefit plan processing.

From time to time Human Interest may provide lists of prospective professional firms and their services, including accounting firms. Human Interest makes no representation as to the competence of any accountants or firms on the List and by providing the List to you, Human Interest does not recommend or endorse any of the firms on the List. We simply are providing the List as a resource. You are responsible for evaluating your provider. Human Interest does not receive any compensation or other benefit by providing the List.

Accolades

Human Interest may from time to time describe itself, or certain business functions or product features, as “best,” “first,” “best in class” or using other superlatives, descriptions, or qualifications intended to portray the company and its products and services in a positive manner. Readers should carefully evaluate such descriptive language based in part on the following recent accolades, as well as historical accolades.

Human Interest received the titles of "Best Places to Work" and "Best Startup Employer" according to third-parties, the San Francisco Business Times (as of 04/24/2020) and Forbes (as of 04/09/2020 and 03/09/2021), respectively using the following methodology:

  • San Francisco Business Times: All Best Places to Work winners are determined exclusively on the basis of their employees' responses to the Best Places to Work Survey. Employee responses from the 30 standard survey questions, along with the number of employees that respond to the survey, are calculated to determine the company’s overall score and ranking.

  • Forbes 2020 -- Forbes and Statista selected America’s Best Startup Employers from 10,000 companies based on an innovative methodology evaluating employer excellence in three ways: 1) Employee Satisfaction: extensive research was conducted on ‘Average Length of Employment’, ‘Employee Ratings’, and ‘Quantity of Ratings’, 2) Employer Reputation: a measurement of social media success; company-specific information was algorithmically extracted from social media channels such as news sites, micro-blogs, blogs, and social networks, and 3) Company Growth: extensive metric calculations were evaluated including ‘Website Traffic’, ‘Job Openings’, ‘Headcount Information’, and ‘Funding Information’.

  • Forbes 2021 -- To determine the list, Statista identified 2,500 American businesses that had been founded between 2011 and 2018 and employ at least 50 people. All companies considered had been started from scratch and not spun out of existing enterprises. Statista evaluated each organization based on three criteria, the first being employer reputation. The firm reviewed articles, blogs, and social media posts pertaining to each employer, searching for specific phrases, such as “corporate culture,” “diversity” and “employee engagement.” Statista then assessed employee satisfaction, evaluating online reviews, as well as growth, examining the organizations’ website traffic and headcounts over a two-year period. The final list ranks the 500 employers that boast the best employer reputations, employee satisfaction, and growth.