Company update:

Captain401 is now Human Interest!

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Frequently Asked
Questions

Employers

Employees

Why do so few small businesses offer a 401(k) plan to their employees?

Historically, it was both costly and time-intensive to offer a 401(k) plan. In addition to high fees, traditional plan providers required the employer to manage all ongoing administration of the plan.

Now, using modern technology, Human Interest is able to sync with your payroll provider and serve as the external HR function for everything 401(k)-related for your company in an affordable way. On top of that, we also provide personalized investment advising for all employees.

More information: Why Small Business Owners Don’t Offer a 401(k) (But Why They Should)

What investment services do you provide?

We offer automated investment advice through Human Interest Advisors, an SEC-registered investment adviser. We allow all employees to follow the best practices of investing by providing personalized investment recommendations for each employee. We follow time-tested investment theories espoused by the world’s leading financial economists: modern portfolio theory, efficient market theory, and the capital asset pricing model.

Many people don’t know how to choose their own investments, and can easily make big mistakes that can cost them hundreds of thousands of dollars in gains. In order for employees to get the most out of their 401(k), we believe that financial literacy is key. We ensure that they receive the guidance they need, that their plans are well-diversified in different asset classes, and we rebalance their portfolios automatically to keep them on track for a secure financial future.

If employees decide that they want to make their own investment decisions, they can simply elect to become solo traders in our platform and buy and sell funds directly.

What does “fiduciary duty” mean?

Through our subsidiary, Human Interest Advisors, we serve as a plan fiduciary, and you have the option to choose between 3(38) or 3(21) in terms of fiduciary responsibility. According to the US Department of Labor (DOL):

Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. These responsibilities include:

  • Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them;
  • Carrying out their duties prudently;
  • Following the plan documents (unless inconsistent with ERISA);
  • Diversifying plan investments; and
  • Paying only reasonable plan expenses.

The DOL is currently trying to pass legislation mandating that all retirement plan providers must be plan fiduciaries—currently, some estimate that 90% of plan providers are NOT fiduciaries.

How soon can I offer a 401(k)?

Setup is completely online and will take around 15 minutes with Human Interest. We send all documents electronically for approval and eSigning. After everything is finalized, the process might take 30-45 days before the plan is ready to launch, during which time we handle all filing and compliance so you don’t have to.

Do you offer any training?

Yes! We believe in financial literacy education and fully informing employees about their retirement plans. Once your company’s 401(k) plan is ready to launch, we can conduct an on-site or webinar training presentation followed by an open Q&A, at no extra charge.

Our customer support team is also available by e-mail ([email protected]) or phone (1-855-622-7824).

What’s the difference between a 403(b) and a 401(k)?

In addition to 401(k)s, Human Interest also offers 403(b) plans. A 403(b) plan is similar to a 401(k), but only available for public education organizations, some non-profit employers, cooperative hospital service organizations, and self-employed ministers in the United States. If your company falls into any one of these categories, we would be happy to assist you in setting up a 403(b).

More information: 403(b) Compared to 401(k): Retirement Plans for Non-Profits