I find that many Clients and potential Clients I speak with are not clear about what their retirement plan representatives are supposed to provide as it relates to their retirement or 401(k) plan. This can provide confusion as to what you as a plan sponsor should do when evaluating your present provider as well as a new provider you might be considering.
In my opinion there are 7 areas that you should have information on and a report on at least an annual basis. These areas are:
- The amount of evaluation your representative does on different plan options.
- What your options are for you as the company owner and your employees have for deferrals.
- A review of the changes that have happened if any in legislation as it relates to your qualified retirement plan.
- A review of different investment options that have become available during the past year. This means are there investment platforms that can help you achieve your goals in a better and or more cost efficient manner?
- A review of your plan investment options as it relates to costs and investment options. You should have a yearly conversation about what’s more important, costs or investment options.
- Have a conversation about the macro investment environment. Often we look at micro situations and forget to take a look at the bigger picture.
- Communicate to your advisor what sort of support you want for your employees. Plans tend to have a high level of support when a change is first made, but this support will often fall off as a plan relationship becomes mature.
Going through a checklist of what’s important for you and your company is something I believe is important. When this is done both your advisor and you will have a clear understanding of what your expectations are. And, in my opinion this can help you get a better plan that fits your needs.
What are your thoughts about your retirement plan? Do you have an annual meeting with your provider where you have a formal meeting? I would love to hear your comments at Jpatrick@stage2planning.com.
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