AUSTIN, Texas--(BUSINESS WIRE)--Honest Dollar, the registered investment advisor with a new approach to financial services, today launched a savings plan designed for 1099 employees that provides this growing category of workers an affordable, flexible way to save for retirement, while retaining their independent job status. The first group to have access to this portable benefit is Lyft’s more than 100,000 drivers. Honest Dollar allows 1099 workers to reap the benefits of today’s gig economy while building towards a more secure financial future.
The Rise of the 1099 Worker
53 million Americans count themselves among the independent workforce – contractors, part-timers, and solo business owners, according to Core Innovation Capital. That number is projected to grow over 4 percent per year through 2020, to reach about 66 million Americans.
“The explosion of the gig economy brings an opportunity for progress and modernization of the extremely antiquated market of retirement benefits. Honest Dollar is following through on our promise to revolutionize financial services by delivering innovative products to underserved audiences,” said Will Hurley, CEO of Honest Dollar. “We started with small businesses and startups who weren’t offering retirement benefits because they were too costly and confusing, and follow today with a product for 1099 employees that works for everyone – employee, employer, and our changing economy.”
Will Hurley added: “Our service is also the first portable benefit of its kind that is purposefully designed to accommodate today’s changing workforce whose needs were going unanswered by traditional financial services products.”
Lyft + Honest Dollar
In conjunction with today’s new offering, Lyft announced that Honest Dollar will provide Lyft drivers with access to its new 1099 service for $3 per month. For the first 2 months, Honest Dollar will waive the $3 per month fee. As an additional incentive, the first 10,000 Lyft drivers to sign up before the end of 2015 will be provided the service for only $1 per month in addition to the free months.
"We hear from drivers every day who use Lyft to help secure a bright future, from paying tuition to saving for a first home," said Oliver Hsiang, Lyft's Vice President of Partnerships. "We’re excited to partner with Honest Dollar to help drivers achieve these goals. This first-of-its-kind product is designed to meet the unique needs of independent contractors through access to financial planning and investment tools."
The Honest Dollar Difference
The onboarding for 1099 workers is quick and painless:
- Doesn’t require a Ph.D. in finance: Independent workers sign up by scanning their driver’s license using their mobile phone. Users can easily link and access their bank accounts through an intuitive mobile app that streamlines saving and investing.
- Flat rate, no hidden fees: The only payment to Honest Dollar is the monthly fee.
- More money for the future: Focusing primarily on IRAs rather than 401Ks, Honest Dollar offers savings that benefit drivers with low fees. Plans can be set up in less than 90 seconds with no startup or termination costs.
To learn more about the new 1099 service and Lyft announcement, visit HonestDollar.com.
About Honest Dollar
Honest Dollar, a registered investment advisor, isn’t your typical financial services company. Honest Dollar develops financial products for underserved audiences that work for everyone: employee, employer, and the economy. Disrupting the traditional approach to financial planning through innovative thinking and technology, Honest Dollar’s mission is to remove the barriers associated with setting up and maintaining retirement accounts for small businesses and self-employed individuals. Focusing primarily on IRAs rather than 401Ks, Honest Dollar offers retirement plans that benefit employees and freelancers with significantly lower fees. Plans can be set up in less than 90 seconds with no startup or termination costs. Plus, all Honest Dollar retirement plans feature funds professionally managed by Vanguard, the low cost investment giant.
