Triple F Advisors (fees, funds and fiduciary) are not doing the 401(k) industry any favors. The same goes for Plan Sponsors! Plan sponsors that focus on the wrong services and measurements are also short-changing plan participants. Unfortunately, Triple F Advisors and their emphasis on the wrong determinants of success are a force with which to be reckoned. Such advisors and their misguided emphasis on fees, funds and fiduciary are failing to deliver the most favorable outcomes. But they are cheap, if nothing else.
Perhaps the Triple F Advisors see something in retirement plans that others are missing. Today’s environment for pricing qualified plan services has a bit of “smoke and mirrors” driving the retirement plan pricing.
Some firms have come to the conclusion that they need to be paid very little for servicing the retirement plan, and they can make up any losses by managing (and charging a fee to manage) the personal wealth and well-being of each plan participant. This could explain the aggressive acquisition of RPAs over the prior four years.
To learn how Retirement Plan Advisors can combat the ‘race to the bottom’ fee pressure, click here and read www.WealthManagement.com’s article on what advisors can do to maintain margin.
