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 system was built so they couldn't see it.
So let's turn the lights on.
Independence is the whole story.
The advisor sits with the providers — paid by the companies he recommends.
Grace sits on your side of the table — paid by you, accountable to you.
Open the hood — four engines running at once.
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.
Everything converging on one center.
Your plan can almost always get stronger — the only barrier is information, what the current provider has little incentive to share.
Where the conflict lives.
- In a traditional arrangement, the people selling you the plan are often paid by the plan — out of these four buckets.
- The richer the share class, the bigger their cut. They can be rewarded for choosing the more expensive option — not the better one.
- Their incentive and your employees' interest point in opposite directions.
An independent fiduciary breaks that link.
How do you know what you're paying?
Most sponsors can't answer it. And that's not an accident. It's a design.
A plan that looks free… is anything but.
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 — for discussion only. Not a projection of any specific investment or return.
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. 1.32% applied to a $10M plan for discussion only.
| 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.
Lower expenses. Higher quality. Higher value. Not a slogan — it's just math.
As a fiduciary — it's impossible to justify paying 75% more, year after year, for the same thing.
The cost compounds.
What one participant can give up by sitting in the expensive share class — cumulative, over a 30-year career.
Assumptions: $50,000 starting balance · $6,000/yr contribution · 7% gross annual return · 30 years. Cost = the 1.11%/yr share-class gap (retail Class C 1.58% − institutional R-6 0.47%, from the EUPAC table), compounded — i.e., the difference in ending balance between the two classes. Hypothetical illustration for discussion only; not a projection of any specific investment or return.
By now, you probably have questions.
What's the catch? How do you do it?
It's surprisingly simple. From the beginning, Grace Capital set out to be different in process so we could be different in results. We run with low overhead, no redundant staffing, and efficient processes — combining the flexibility and independence of a small firm with the strength and purchasing power of the industry's largest 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 exactly what you're paying — and what you could be saving.
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.
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. Past performance does not guarantee future results. 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.
Investment advisory services offered through Grace Capital Management, LLC, an SEC-Registered Investment Adviser (CRD #150054). Securities offered through Concorde Investment Services, LLC, Member FINRA/SIPC. Custody of assets provided by Fidelity Investments (National Financial Services LLC). Earl Proeger, Series 7 & 63 registered representative.