Jack White & Co. is forming alliances with Big Six accounting firms and large third-party administrators to broaden its reach in the 401(k) business. The firm has offered a turnkey 401(k) for five or six years but because of high administrative costs, ``pricing has not been very competitive,'' said Don Cody, marketing coordinator-institutional services.
Indeed, the product has assets of less than $5 million and Mr. Cody said, ``we're almost at the point of not recommending it anymore.''
A number of alliances will be announced by Jan. 1, including one with SEI and Peat Marwick. The firms will use Jack White's no-transaction fee mutual fund program in conjunction with their own administration. Pricing will be at the discretion of SEI and Peat Marwick.