Working Americans who have access to a company-sponsored 401(k) Plan are fortunate. Even more fortunate is the plan participant who is employed where the company views the 401(k) Plan as more than just a retirement plan. Most fortunate is the plan participant where the company fiduciaries view the 401(k) Plan as a company benefit and actively works with a strong 401(k) advisor.
What is the Difference?
The differences between a retirement plan advisor and just any-other advisor are clear and numerous. A retirement plan Advisor will service a plan’s fiduciaries on a much deeper and broader scale than overseeing mutual fund selection alone. As an example, mutual funds are used in many retirement plans; however, a strong retirement plan advisor will have an awareness of Collective Investment Funds and Strategic Target Date investments. Plan sponsor retirement committees have a duty to be aware of the varoius retirement plan investment structures. Plan sponsors should be hearing of these investments alternatives, and the benefits of Collective Investment Funds, by way of their advisors.
Most Retirement Plan Advisors are competent with investments and their areas of expertise include Plan Design, Behavioral Finance, Employee Education, Fiduciary Best-practices and Measuring Plan Outcomes as well. The benefit of utilizing a strong Retirement Plan Advisor is measureable, but the peace-of-mind that is transferred to a Plan Sponsor Retirement Committee when they know they have found the right advisor is immeasurable.
Does your Company Work with a (Retirement Plan) 401(k) Advisor?
The Plan Sponsor University (TPSU) conducts half-day fiduciary Education Programs throughout the country. (TPSU has conducted over 210 programs at colleges and universities to over 3,500 companies.) During TPSU Programs attendees make it crystal clear if they have a true Retirement Plan Advisor – or if their company is going to be/or is looking for one in the near future.
A quick check a plan sponsor can use to see if their Advisor is current with Retirement Plan news would be to ask your advisor about H. J. Res 66 or H. J. Res 67 – which address The Committee on Education and the Workforce JOINT RESOLUTION Disapproving the rule submitted by the Department of Labor relating to savings arrangements established by qualified State political subdivisions for non-governmental employees.
