The most important decision an employer sponsoring a defined contribution (DC) plan like a 401k or 403b can make is to find and engage with an experienced plan advisor, neither of which is easy. But an experienced DC plan advisor that a plan sponsor leverages will not only mean less work, costs and liability for the company, it could result in workers that are more prepared to retire on time and that are more productive and less stressed about finances at work.
Jim Sampson, a principal at Cornerstone Retirement Advisors based in RI covering the SE Massachusetts TPSU Zone as Adjunct Lecturer talks about his clients that do and do not leverage him after a TPSU program conducted at Stonehill College where the subject came up frequently.
The 135 DC clients that get the most out of Sampson are those that engage with him (just like plan participants), listen to his advice, are dedicated to the process beyond selecting and evaluating investments. These clients are focused on helping their employees prepare for retirement. A DC plan advisor is like a doctor – why hire them if you don’t listen to them?
Those clients that don’t “get a bang for their buck” don’t take regular meetings with Jim and they don’t follow his proscribed solutions settling for just checking the box and doing the bare minimum.
How do you know if you have a good advisor for your DC plan? “They are proactive not waiting for you to ask questions.” Sampson notes, “They ask questions you don’t know to ask.”
Most advisors don’t focus on DC plans – in fact only 1% of the 250,000 managing or getting paid on a 401k or 403b plan are Elite Plan advisors like Sampson. Family doctors generally don’t work on brain surgery so what hire an advisor who dabbles in the DC market? You are risking fines, lawsuits and unnecessary work as well as less productive workers worried about finances who can become very expensive if they can’t retire on time.
