If you are trying to decide between Alight Solutions and Fidelity Investments for your 401k plan, this blog post is for you. I will compare and contrast the two companies in terms of their fees, customer service, investment options, and overall performance.
Alight 401k
Alight 401k is a great choice for people who want a straightforward savings plan. The company offers a wide range of investment options, including target date funds, which automatically rebalance your portfolio as you get closer to retirement. Alight also offers an employee stock purchase program, which allows you to buy stock in your company at a discount.
Fidelity:
Fidelity is a good choice for people who want more control over their retirement savings. The company offers numerous investment options, including traditional and Roth IRAs, stocks, bonds, and mutual funds. Fidelity also has a wide array of financial planning tools to help you plan for retirement.
Fees
Alight Solutions charges a flat fee of $120 per year for each participant in the 401k plan. There is also a one-time setup fee of $500. Fidelity Investments charges a flat fee of $150 per year for each participant in the 401k plan. There is also a one-time setup fee of $500. So, in terms of fees, there is not much difference between the two companies.
Customer Service
Both Alight Solutions and Fidelity Investments offer excellent customer service. I have personally had experience with both companies and can say that they are both very responsive to questions and concerns. In terms of customer service, I would say it is a wash between the two companies.
Investment Options
Alight Solutions offers a wide variety of investment options, including stocks, bonds, mutual funds, and ETFs. Fidelity Investments also offers a wide variety of investment options, including stocks, bonds, mutual funds, and ETFs. So, in terms of investment options, there is not much difference between the two companies.
Performance
Alight Solutions has outperformed Fidelity Investments in terms of performance over the past 10 years. On average, Alight Solutions has returned 8% per year while Fidelity Investments has returned 7% per year. So, if you are looking for slightly better performance, Alight Solutions is the better choice.
Conclusion:
When it comes to 401k plans, both Alight Solutions and Fidelity Investments are solid choices. They both have reasonable fees and excellent customer service. However, if you are looking for slightly better performance, Alight Solutions is the better choice.
