The Benefits of a Retirement Plan Investment Advisor
In the complicated, ever-changing world of retirement plans, it’s difficult to stay on top of every detail of your plan. Who can you turn to act in your best interest and guide you through the maze of plan options, retirement plan investment fees and features? We recommend a retirement plan investment advisor.
A retirement plan investment advisor can:
- Assist with fiduciary responsibilities. According to well-known ERISA (Employee Retirement Income Security Act) attorney, Fred Reisch, plan fiduciaries have some of the highest standards of care known to man. An advisor can help you fulfill your very important role as a plan fiduciary. Typical consulting services may include drafting an investment policy statement; providing assistance when it comes to understanding retirement plan investment fees; assisting in the selection of investment options by following a well-documented, prudent process; monitoring ongoing investment performance; and assisting with service provider selection.
- Control plan costs. One of the many requirements of plan fiduciaries is to control plan costs. This requires that plan fiduciaries know all the fees that are being charged to the plan and participants; this is crucial considering that almost 90 percent of the fees paid by retirement plans are investment fees which are often hidden. It also requires that they determine whether these fees that are related to your retirement plan investments are reasonable given the services being offered. In addition, retirement plan advisors should disclose their compensation schedule and, if paid directly from the investments in the plan, how much they’re receiving on an annual basis.
- Help educate participants. Retirement plan advisors can play a critical role in educating and motivating staff to save for retirement. This support can be in the form of consulting on education campaigns or offering creative industry techniques and tools to make it easy for participants to make decisions.
The world of retirement plans continues to evolve, making it increasingly difficult to monitor your plan effectively. Given the heightened sensitivity to a plan sponsor’s fiduciary responsibilities, it’s never been more important to partner with a retirement plan investment advisor. A fee analysis of your investment plan is a prudent step that can help you understand more fully your retirement plan’s true costs.
We are independent, highly experienced, and objective. You can be assured that we put your interests first.