SaveDay wants to make sure everyone can easily and affordably save for retirement.
That’s the mission for Barry Mione, Co-Founder and President of SaveDay, a startup that provides 401K plans to small businesses.
SaveDay, with four employees, is relocating from California to Austin. Mione is currently participating in the Winter 2019 Sputnik ATX program. Sputnik ATX is an early stage tech accelerator that invests $100,000 into each of the startups accepted into its 13-week program. Its Demo Day is next Tuesday when the five startups in the latest cohort including SaveDay will graduate from the program.
“The majority of companies, especially smaller companies, don’t offer their employees a 401K retirement plan,” Mione said.
During an interview on the Ideas to Invoices podcast, Mione discusses how the company got started, the growing need to provide 401K retirement plans to individuals who work for small companies and plans for its future growth. SaveDay has about 2,000 participants currently and manages more than $20 million in assets.
Ayman Abukhater and Mione co-founded SaveDay in 2015. The company has four employees with plans to grow to ten employees by the end of the year, Mione said.
Only 14 percent to 15 percent of employees, who work for companies with less than 100 employees in the U.S., have a 401K retirement plan, Mione said. About 41 million people in the U.S. who work for small companies are currently not saving for retirement, he said.
SaveDay is really the ability for an employer to offer any employee in America a 401K that is free to the employer and lowest in the industry to an employee and costs $3.50 annually for every $1,000 invested, Mione said.
Before launching SaveDay, Mione served as vice president at BNY Mellon and he previously served as senior director of customer service at E*trade Financial. The startup Mione co-founded, DLJdirect, a division of Donaldson Lufkin & Jenrette Securities Corp. sold to E*trade.
SaveDay is focused on eliminating fees for employers and minimizing them for employees for 401K retirement plans, Mione said. SaveDay is a web-based program that is mobile friendly, he said. The size of the companies enrolled in its program run the gamut from two employees to companies with 125 employees, Mione said.
“I call this a big blue ocean of opportunity,” Mione said. SaveDay is focused on the 85 percent of small employers who don’t currently offer retirement plans.
The SaveDay platform lets employees save as little as $5 a week, Mione said. It adds up over time, he said. A 25-year-old who invests just $2 a day will be a millionaire by the time they retire, Mione said.
For more on SaveDay, please listen to the entire podcast below.
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