In a recent
article on the
Daily Finance Web site, a checklist of key elements could prove the 401(k) plan that you sponsor for your employees a clunker! William Bernstein, a respected financial analyst, delivers the top signs that your retirement plan may need to be re-evaluated.
- High costs: Does your plan have high recordkeeping, custody, administration and advisory fees? Service providers must disclose a description of the services it provides to plan sponsors, as well as provide the direct and indirect compensation expected for such services. Make sure you analyze your plan so you are fully aware as to where your money is being allocated.
- High Fees: In many plans, the management fees charged by certain funds can really impact the returns for both you and your participants.
- No Investment Guidance: Plan providers and sponsors often offer educational training for their participants; however, the employer or the plan provider should offer investment guidance for additional support for plan participants, so that they can put together a portfolio of certain asset allocations that are suitable for their retirement goals.
- Fiduciary Liability: Businesses are advised to examine their current plan to ensure they are receiving the full benefits available to them while minimizing their fiduciary liabilities related to trustee and custody services.
- Many investment options: Instead of offering a large selection of funds, your plan should have a limited number of pre-allocated, globally diversified stock and bond index funds, ranging from conservative to high risk.
If you are interested in a plan provider that discloses low fees, helps to shoulder fiduciary responsibility as well as offer 27 diversified investment funds, including target dated funds, consider a NADART 401(k) plan. With additional plan features such as Automatic Enrollment, Roth 401(k) Contributions and a Sub20 plan for businesses with 20 or fewer employees, your company can offer a variety of options that fit your needs and budget! For more information regarding the services we can offer you, please contact one of our representatives at (800) 462-3278, ext. 7254 or nadart401k@nada.org.