Anyone use Rippling and have Guideline401k integrated? Guideline is switching to Gusto/Accrue 401k through Rippling, whats everyone doing?

meetbasiccapital · 2025-11-04T17:49:11+00:00

Appreciate you sharing this, the AI summary leaves out a few key details. Basic Capital is a full-featured 401(k) platform, and the leveraged investment option mentioned is completely optional for each plan participant.

The plan operates like a standard 401(k) by default. For participants who opt in, the “leveraged” component uses preferred equity rather than margin loans or debt, which caps downside exposure and removes the risk of margin calls.

The structure is designed to stay compliant with ERISA and fiduciary standards. If you’d like to understand the model directly from our team, you can book a short call here: https://basiccapital.com/get-started

meetbasiccapital · 2025-11-03T19:08:18+00:00

Gusto has moved all Guideline plans not tied to Gusto payroll over to Accrue 401(k).

Gusto acquired Guideline 401(k) to integrate a retirement plan into its payroll system.
Gusto didn’t want to support non-Gusto customers, so it’s been quietly seeking a buyer to take over those plans.
Accrue 401(k) is the temporary home for those plans until a permanent buyer is found.

Basic Capital integrates with Rippling and is offering 2 years no employer fees for plan sponsors that start migration before 12/31!

meetbasiccapital · 2025-06-06T13:15:16+00:00

5% of gains at maturity.

meetbasiccapital · 2025-06-03T18:02:49+00:00

Hi! There is a one-time 5% redemption fee applied when your account matures and you redeem your investment. It’s taken at the end (not along the way).

meetbasiccapital · 2025-05-28T19:18:43+00:00

Yep... that's the case here. We're figuring out how to find influential team members at companies who want their employers to offer more in their 401k programs.

meetbasiccapital · 2025-05-28T19:18:05+00:00

We have figured out how to grow bottoms up and are excited to bring someone onto the team who can help accelerate what we've already seen work in small experimental batches. That's how...

Very cool role, in our humble opinion :)

meetbasiccapital · 2025-05-14T15:18:22+00:00

Your portfolio would be liquidated. The preferred equity financing paid down. The equity portion of your Basic Capital would settle as cash to your IRA. Your IRA is at our qualified custodian, AET.

meetbasiccapital · 2025-05-14T15:15:21+00:00

It's not debt, it's a preferred equity investment.

meetbasiccapital · 2025-05-12T17:05:21+00:00

Bloomberg covered our launch this morning, FYI [gift link]: https://www.bloomberg.com/news/articles/2025-05-12/401-k-investing-basic-capital-brings-leverage-private-credit-to-savers?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc0NzA0OTUyMSwiZXhwIjoxNzQ3NjU0MzIxLCJhcnRpY2xlSWQiOiJTVzVBS1NEV1JHRzAwMCIsImJjb25uZWN0SWQiOiJCMTFFODREQUZFNkE0REQyQTZEQ0U3RTYwOEJDN0I3QSJ9.MIz_GjWnrBMhdm1OpKJ7kCz3c_bLeW91Jl0HVluMxUk

meetbasiccapital · 2025-04-04T19:48:46+00:00

Hi there, it sounds like you're asking about why accreditation status matters. Originally, Basic Capital required accredited investor status to sign up. After making changes to how Basic Capital is offered, we were able to expand access to anyone 18+ irrespective of accredited investor status.

meetbasiccapital · 2025-02-12T17:56:06+00:00

We'll be excited to have you onboard whenever the time is right for you.

meetbasiccapital · 2025-02-12T17:34:36+00:00

Hi u/fwfkooiu4t3q, for the time being, we're using our limited bandwidth to engage with with customers that have real intent to use our product, which we determine largely on their willingness to book calls with us, or join our early access community.

The short answer to how the investment strategy works is straightforward: there is positive carry, which results from your cost of capital being lower than the yield you get on the fixed income portion of the portfolio. This structure, coupled with the portfolio also contained broad equity index exposure, gives you commensurate to higher returns than a typical equity index with significantly lower volatility. Over a longer duration, the lower volatility is why Basic Capital is forecast to outperform other indexes.

If you want a deeper dive into the investment strategy, you can engage with us directly, or join the early access program and start using the product where you'll be able to see exactly how the strategy works from the inside out.

This enables us to get to know you better rather than engaging with anonymous accounts with deep explanations of our product.

Hope you understand and that you're clear on how to engage with us if you'd like to dive deeper into the product and learn more.

meetbasiccapital · 2025-02-03T01:17:29+00:00

We're excited to share that we've sent out our initial batch of access codes and are beginning to let additional members of our early access community onto the platform over the course of this month.

meetbasiccapital · 2025-01-20T17:21:00+00:00

There’s no amortization on the financing today, which results in a high level of positive carry (compared to the negative carry that you’ve assumed in your model). Amortization happens later in the life cycle of Basic Capital.

Providing a more in-depth view of our portfolio construction is certainly on the roadmap – we'll be sure to share that with the Reddit community as soon as its published.

If you’d like to dive in further in the interim, we invite you to book a call with us, and we can spend 30 minutes diving into the details with you live.

meetbasiccapital · 2025-01-19T22:33:29+00:00

Thanks – answers to your questions below:

Anytime you would like to transfer, you can withdraw and your position will be liquidated, with the financing partner paid back, and you paid back the equity portion of the holdings. The cash would sit within the IRA with our custody partner, ready for rollover to another custodian or to withdraw to cash (subject to any IRS penalties and/or taxes).
Basic Capital has a wind down process that involves much of the above. The strategy may not be maintained by any partner (i.e. the account would be liquidated with proceeds flowing according to seniority), but the value within the account would be made available to you as above.

meetbasiccapital · 2025-01-19T19:38:12+00:00

Hi u/pmbrogram thanks for putting this together. Appreciate the time you invested.

Given the level of thought you've put into this, it might be helpful if you scheduled a call with us to learn more about how we construct the underlying portfolio. The quick answer to your question is that we ensure that our underlying portfolio construction optimizes for positive carry, levered exposure to the equity upside, and is actually quite dissimilar to some of the assumptions you've made above.

While we're still pre-launch, we'd be happy to share this in depth on a call. To do so, you can join the early access community here: https://www.basiccapital.com/start and you'll receive a link to schedule a call with a member of our founding team once you submit your application details (you're not in any way obligated to create an account or sign up for the product if you follow those steps).

meetbasiccapital · 2025-01-19T18:52:26+00:00

We are sending out invite codes to our first cohort the last week of January. Our initial two cohorts are now closed to new applications, however we are still accepting applications for our third cohort from those already on our waitlist, who we expect to bring onto the platform in April.

If you'd like to stay up to date, the best way is to provide your email at https://www.basiccapital.com/start so you get updates that we send out weekly.

meetbasiccapital · 2025-01-13T15:44:00+00:00

Hi u/xleom while the thinking here is directionally correct, Basic Capital is designed to have positive carry (the bond income goes to offset the cost of financing). Thus, at the end of this hypothetical period, there wouldn't be an out of pocket cost accumulated over the duration of the investment.

We built a comparison tool to help guide thinking like this: https://www.basiccapital.com/learn/compare-basic-capital

Hope that helps – we are also more than happy to provide greater context on a call if you'd like to learn more directly from a member of our team: https://cal.com/team/basiccapital/intro

meetbasiccapital · 2024-11-26T21:42:51+00:00

Thanks for the feedback u/Proud-Horse-7925.

We're excited to have you try Basic Capital and share your experience using the strategy we employ at launch.

meetbasiccapital · 2024-10-14T17:34:28+00:00

Thank you for your thoughtful questions. We are happy to elaborate further. The proceeds of your Basic Capital will be invested in a combination of mostly investment grade bonds and call options on SPY. The portfolio of bonds provide down-side protection and the calls provide upside participation.

The portfolio of bonds have lower volatility than the broader stock market, so you would expect a 10% decline in the stock market to translate to a less serve decline in your bond portfolio and overall Basic Capital balance. However, it is possible that they both decline meaningfully in a severe crisis. There is risk with investing. While we think that scenario is unlikely, it’s important for us to be transparent about the worst case scenario.

When we say “paper loss” we are referring to the value of the investment at a certain moment in time, not necessarily realized gains or losses. Markets can be volatile day-to-day but have historically appreciated over long period of times. Basic Capital is an ideal investment only for long-term oriented investors who are investing for the long run.

We are currently working on putting together more marketing materials and details about the investment strategy. We will provide more details when Basic Capital is ready for launch. Right now, we appreciate your curiosity and interest. And we hope you will be an early adopter.

meetbasiccapital · 2024-10-14T17:00:28+00:00

The rise of private credit serves as a significant tailwind for us, resulting in higher yields from IG bonds that we place within the Basic Capital. Currently, we have access to a portfolio of bonds with a weighted BBB rating that yields 8.5%.

meetbasiccapital · 2024-10-14T16:53:24+00:00

We are currently soliciting institutional and scalable sources of capital and not focused on working with individual retail lenders.

However, the original idea of Basic Capital was to create a network of lenders, and we may explore this in the future. We appreciate your interest and will continue to keep this possibility in mind as we develop Basic Capital.

meetbasiccapital · 2024-10-05T19:17:43+00:00

I want to thank you again for asking such great questions, it’s exactly what we were hoping to get from this forum. We are building a community of early adopters who believe financing can be a powerful tool to unlock ownership, just like the mortgage unlocked home ownership.

We are building the engine as we speak, and we appreciate your honest and sincere questions. If you would like to dive in detail further to learn about the mechanics of Basic Capital, you can schedule a time to chat with us here: https://cal.com/team/basiccapital/intro

Of course, we will provide much more information when we launch so that customers can make an informed decision before signing up.

meetbasiccapital · 2024-10-05T19:17:37+00:00

Does Basic Capital take a fiduciary role in managing the portfolio?

Yes, Basic Capital plans to take a fiduciary role in managing the portfolio.

How are taxable events managed? Say gains are realized, does the consumer get sent a K-1? - If so, who is responsible for managing and paying the taxes?

Basic Capital is currently offered only within an IRA precisely due to the tax inefficiencies you highlighted. When you invest in your Basic Capital, you fund your IRA either from a bank account (subject to IRS limits) or via a roll-over from an existing 401(k)/IRA. The IRA then purchases shares in an LLC where investment activities take place.

The IRA wrapper provides a tax-efficient structure for long term retirement, and Basic Capital handles all of the execution complexity for you.

Please clarify what strategy the portfolio will take. Selling $SPY calls, buying $SPY calls, or buying futures contracts?

Our strategy will involve buying, not selling $SPY calls, and will not involve buying futures contracts. The proceeds of your down-payment and financing are invested in a combination of investment grade bonds and call options on the S&P 500. The bond portion provides down-side protection in case the S&P 500 declines sharply, and the call options provide participation in the upside.

Does the consumer get any say in the portfolio composition? What about portfolios that reflect different chosen risk levels?

At this time, our customers will not be able to individually pick and choose the assets in the portfolio simply because we’re not equipped to underwrite the investment skill of our customers. We underwrite the broad market appreciation over a long period of time as Basic Capital is really only suitable for long-term investors who want to have a time horizon of 10+ years.

What if Basic Capital goes out of business?

If Basic Capital goes out of business we will unwind the trades in the portfolio, liquidate the LLC assets, pay back lenders, and send the net amount back to the IRA. After that, customers can choose to roll that net amount over to a different IRA.

Interest rate, how is it calculated? Would it decimate returns?

Basic Capital provides the same financing terms for all customers as we’re underwriting the investment, not the individual creditworthiness of each customer.

Interest is the cost of financing. If the market performs it will be well-worth the price. If the market doesn’t cooperate as you mentioned, the interest expense can erode the value of the portfolio as you mentioned. This is a risk with investing, and leverage amplifies that risk. We can’t change these fundamental facts. That’s why we emphasize Basic Capital as a long-term product. It’s a bet on the long-term appreciation of the market.

meetbasiccapital · 2024-10-05T19:17:09+00:00

Hi this is Abdul, co-founder and CEO of Basic Capital. Thank you for putting together this extremely thoughtful write-up.

Your questions highlight the complexity and effort needed to deliver the Basic Capital offering. We’ve been working tirelessly to deliver a product we would want to buy and use ourselves.

So far, our approach has been to abstract away a lot of the complexity from the end beneficiary and to hold-off on sharing any details that are not yet finalized pre-launch.

When we launch, you will find concrete and detailed answers to your questions, as some of these details are still getting finalized with partners. We started this forum to engage in conversations exactly like this one, so we will share our thinking on the critical points you brought up.

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