Retirement Plan Advisors Cannot Objectively Measure Themselves

Retirement Plan Advisors might want to measure themselves – for the benefit of Plan sponsors and Plan participants, but can they actually do it? Should they? Can any vendor or provider objectively measure “what they do” or “how they do it”?

Although there are many financial advisors who feel they do not need to be benchmarked, most retirement plan advisors know better. Most advisors are fully aware of the short-sightedness of inserting themselves as the Eye of Objectivity when it comes to how they’ve performed over the prior year, or the most recent market-cycle in equities, bonds or target-date fund comparisons. (Not many individuals go to the office intending to perform as a substandard level. Not many fancy themselves as wanting to “do average” or “less than average” at work today!

In the interest of reducing the overall fees the plan sponsor pays to “other” service providers, does it make sense to have those same individuals measure the appropriateness of their own service fees? Most astute plan sponsors “Already Know” the correct response to that question. However, most Plan Sponsors will fail to challenge the RPA on that topic.

For more on this topic, see what Fred Barstein has to say on this topic at www.WealthManagement.com.

Retirement Plan Advisors Cannot Objectively Measure Themselves

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