The Grace 401(k)
Every business owner who offers a retirement plan is making a fiduciary promise. This is the story of keeping it — in the light.
Let's turn the lights on.
A promise to the people who show up every day.
A promise that the money they set aside is handled with care. But here's the uncomfortable truth:
- Most sponsors have no idea what their plan actually costs.
- Not carelessness — the way fees are disclosed makes them very hard to see.
So let's turn the lights on.
Independence is the whole story.
Under many traditional models, the same firm both advises the plan and sells its own products — a structure that can tilt incentives toward provider revenue. We're built to keep the balance level.
Incentives can tilt toward provider revenue — and away from your employees.
Level by design. Cost and value weighed on the plan's behalf.
Fiduciary means holding the balance — every year.
Looking under the hood…
Funds
The investments your employees hold.
Advisor
The guidance steering the plan.
Administrator
The recordkeeper tracking it all.
Custodian
The institution holding the assets.
Four services. Four sets of fees. Bundled into one number that's nearly impossible to take apart.
Where the conflict lives.
- Under some compensation structures, the people selling the plan are paid by the plan — which is why fund-level fees can be higher than they need to be.
- The richer the share class, the bigger the cut can be. That can reward choosing the more expensive option — not the best one.
- When compensation rises with fund costs, your employees keep less — a structural conflict.
An independent fiduciary is designed to remove that incentive.
How do you know what you're paying?
Most sponsors can't readily answer it — and that's no reflection on them. It's how the fees are disclosed.
Perception vs. Reality
Illustrative. Proportions for emphasis, not a measured figure.
Same fund. Fourteen prices.
Same fund. More than 3x the cost.
Source: EUPAC Fund statutory prospectus filed with the SEC (Form 485BPOS, May 2026; effective June 1, 2026) and Capital Group fund pages. Expense ratios change over time. The fourteen classes shown exclude the fund's six additional 529 share classes.
The gap shows up decades later.
Hypothetical illustration of a mathematical principle — two otherwise identical plans differing only in annual cost. For discussion only; not a projection of any specific investment, strategy, or return. Actual results vary.
Around this much — every year. Most of it invisible. Here's where it goes:
The law requires disclosure. That's not the same thing as clarity.
Form 408(b)(2) is supposed to lay these fees out. But it's dense, technical, written for a regulator.
Our job: translate it into plain dollars, in plain English.
*Hypothetical illustration: a sample 1.32% all-in fee applied to a $10M plan, for discussion only. Actual fees vary by plan.
| Direct compensation | see §3.2(a) |
| Indirect compensation | see §3.2(b) |
| Total annual cost | 1.32% |
| Sub-TA / float income | see Sched. C |
| Recordkeeping offset | — |
How independence changes the math.
Lower Fund Expenses
Move to institutional share classes of the same funds your participants already hold.
Competitive Advisory Pricing
Fair, transparent advisory fees with no hidden revenue-sharing arrangements.
Right-Priced Custodian
We source a competitively priced custodian instead of accepting bundled defaults.
Full Transparency
You see every fee, in plain dollars — no bundling, no surprises.
Better Technology
Improved participant platform and accessibility, with a higher-quality experience.
Single-Source Accountability
One team responsible for the whole plan — no finger-pointing between providers.
The aim is straightforward: lower costs, higher quality, more value — all in plain view.
Where do the dollars actually go?
A standard, “everyone-gets-the-same-percentage” design spreads the contribution by payroll.
In this hypothetical, two-thirds of contributions go to the broader staff — with a smaller share reaching the owners and key people.
As a fiduciary, your duty is to pay only reasonable plan expenses. If your plan is paying substantially more for the same services, that's a question worth asking — every year.
The cost compounds.
How a ~1.1% annual cost difference can compound over a 30-year career — an illustration of the math, not a prediction.
Assumptions: a hypothetical participant account with steady contributions over 30 years, identical in every respect except a ~1.1%/yr cost difference between share classes. Hypothetical illustration of a mathematical principle — how a cost charged every year compounds over time. For discussion only; not a projection or prediction of any specific investment, strategy, or return. Actual costs and results vary.
By now, you probably have questions.
How do you do it — and what's the trade-off?
Our compensation is transparent and disclosed up front. From the beginning, Grace Capital set out to be different in process so we could be different in what clients experience. We run with low overhead, no redundant staffing, and efficient processes — combining the flexibility and independence of a small firm with institutional-class access typically associated with much larger organizations.
What is my role as a fiduciary?
Per the U.S. Department of Labor, plan fiduciaries must act solely in the interest of plan participants and their beneficiaries; carry out their duties prudently; follow the plan documents (unless inconsistent with ERISA); diversify plan investments; and pay only reasonable plan expenses.
How long is the process?
It varies depending on your current setup and providers. We do the legwork for you so you can focus on running your business, and we commit to minimizing the time your company has to invest in the transition.
What's the next step?
To get started, we only need two items: your plan's Form 408(b)(2) fee disclosure (ticker symbols, funds, etc.) and your plan's most recent statement of fund balances. From there, we'll show you what you're paying today — and where there may be room to reduce costs.
In the light, not in the shadows.
A 401(k) is a benefit you offer, that comes with a fiduciary duty. That means paying attention to what's under the surface, so your people retain as much as possible of every dollar they've earned. All investing involves risk, and outcomes vary from plan to plan — but understanding what you pay is the first step.
Fee Disclosure
Statement
Grace Capital Management · Personalized investment insight & strategies
For Educational & Discussion Purposes Only
Fund example: American Funds EUPAC Fund (formerly EuroPacific Growth Fund, renamed effective June 1, 2025). Share-class expense ratios shown are sourced from the EUPAC Fund statutory prospectus filed with the SEC (Form 485BPOS, May 2026; effective June 1, 2026) and Capital Group fund pages. The fourteen classes shown exclude the fund's six additional 529 share classes. Expense ratios change over time; always refer to the current prospectus before investing.
Hypothetical $10M plan illustrations and "GCM Plan" comparisons are illustrative only. Actual plan fees vary by plan size, participant count, services selected, and provider arrangements. No level of cost savings or plan-design outcome is guaranteed. Past performance does not guarantee future results. All investing involves risk, including possible loss of principal. References to specific funds are illustrative only and are not a recommendation to buy, sell, or hold any security. Discuss any investment decision with your financial advisor, tax advisor, and ERISA counsel.
Plan-design illustrations (including new-comparability and cash-balance concepts) are hypothetical, depend on employee census and nondiscrimination testing, and are provided for education only — consult your third-party administrator, tax advisor, and ERISA counsel. Nothing in this presentation is individualized investment, tax, or legal advice.
Investment advisory services offered through Grace Capital Management, LLC, an SEC-Registered Investment Adviser (CRD #150054). When engaged as investment adviser to a retirement plan, Grace Capital Management typically serves as an ERISA 3(21) fiduciary, with 3(38) discretionary management available; the applicable capacity is set forth in the advisory agreement. Securities offered through Concorde Investment Services, LLC, Member FINRA/SIPC. Advisory services and brokerage services are separate, and compensation differs between them. Custody of assets provided by Fidelity Investments (National Financial Services LLC). Earl Proeger, Series 7 & 63 registered representative. Intended for plan sponsor and employer use.