Retirement Plans: Episode 3 (A 4 Part Educational Series for Companies)

This is a 4 part educational series covering Retirement Plans in companies and suggested items to consider when building or enhancing a sponsored plan.  In the Episode I, we covered reasons that you are using or running a retirement plan. Read that article here.

In Episode II, we go over potential risks and reasons to pursue a proper plan design and relief-or items to consider when planning a benchmarking strategy to review your current plan.  Read the full article here.  Feel free to share these or others!

Episode III: Who’s On Your Team?

(aka Retirement Plans Team)

Everyone has a choice.  Once upon a time, the choice was as easy as calling your nearest broker and saying that you wanted to start a retirement plan.  They would come over, show you a nifty presentation and have you choose the type of plan.  Then, they would help you by “advising” you on “suggested funds” to have included in your plan.  Then with enrollment, discussions with the employees would be hypothetical.  If you asked how much you were paying, it was built in so you really never new.

Those days are over.  There is too much risk at hand to be “sold” a plan anymore.  The retirement plan of today needs to be designed and built specifically with your company’s needs in mind.  You start with the goal (see Episode I), then you go through the options (see Episode II).  When you have a question, you ask it and the person on the other side of the table should be able to answer you directly.  Giving you solid advice and providing some direction based upon your best interests.  If you ask how much this is going to cost, the other person must be able to identify the exact fees and tell you who is paying them and what you are getting for that price.  This my friends, is the role of a fiduciary advisor. “Selling” is semantics.  “Advising” is not.   Choose someone/or firm who can advise you (as the owner, administrator, or human resource director/professional), and if the plan is set up properly can also educate and advise the employees.

If you are not a prudent plan expert-then hire one.  If you are not a competent financial planner, investment advisor or record keeper-then don’t let your staff pretend to be one—hire one.  If your payroll company is not an expert plan administrator-then don’t let them do one of the most important jobs in this team line up.  If you want everyone to work together for the sole purpose of helping you navigate the rules and have a plan built specifically for you, then what you want is a fiduciary advisor who can help you build the dream team of “unbundled” (aka you know what you are paying for) team members.  This includes the following:

RPlan 2

Do you notice something? With a fiduciary advisor at the helm, the team comes together for the purpose of providing what’s best for you-the company, stakeholders and employees.

Read the next episode for learning what is the next, best, right step to implement!

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations

Securities offered through LPL Financial. Member FINRA/SIPC. Advisory Services offered through HighPoint Advisor Group, LLC, a registered investment advisor.  HighPoint Advisor Group, LLC and OnPath Financial are separate entities from LPL Financial.

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