Our objective is to make the 401(k) plan your company’s most-appreciated benefit. But people can’t appreciate what they don’t understand. That’s why we educate participants in ways other advisors can’t – we relate to your people – we speak to them on their level. Whether you have a team of highly-educated financial experts, or highly skilled craftsmen, we teach them what the retirement plan means for them in a context they can connect with. Once they understand the plan and the opportunity it presents for them, they are in a position to appreciate it.
Once your employees understand and appreciate their retirement plan, they need to value it – but we only value things that are valuable. What makes a plan valuable? It must be quantitatively and qualitatively superb. If fees drag the performance or the funds are lackluster, it won’t be valued. If service is poor and participants are denied attention, it won’t be valued. In contrast, a plan that is efficient in fee structure, strong on performance, and attentive with service will be more than just valued – it will be used.
Plans that are used become more valuable – and thus begins the positive spiral of appreciation that can make your company 401(k) plan the kind of plan that makes employees confident in their future, focused on their job, and loyal to their employer.
Quantitative
Low Fees: We optimize plans by making custody selections based on size, number of participants, and valuation timeframes in order to minimize expenses to both the employer and employees. As a general rule, in recent years, plans have reduced fees and provided more clarity. This has made newer plans more efficient and transparent than they were before.
Solid Performance: We have a proprietary method of selecting mutual funds for retirement plans. Our focus is on “performance-persistence.” All too often, a single year pushes managers into top tiers and performance is not replicated. Therefore, we seek out managers who habitually outperform peer funds on a year-by-year basis. We select a high concentration of funds ranked in the top quartile every year, thus demonstrating consistency.
Positive Cash Yield: With the drastic reduction in interest rates, far too many plans have cash investments that produce a negative yield (guaranteed to lose money). We insist that every plan should offer a cash option that will always have a secure, positive yield.
Qualitative
Fiduciary Responsibility: We are committed to ensuring that the plan meets education requirements, transfer options, and fund diversity standards under federal regulations – protecting the employer and providing peace of mind.
A Trusted Advisor for Employees: Meeting one-on-one with employees is the best way to educate and increase participation in the plan. We take genuine interest in each individual and provide resources they value and appreciate.
Promoting the Employer: With health plans rapidly deteriorating as a benefit, retirement plans are quickly becoming the premier benefit to attract and retain talent for your company. We go to great lengths to communicate to employees the quality of the benefit and the generosity of the company in providing it.
Education for Participants: One of the plan trustees’ primary fiduciary obligations is to provide education to participants with regard to the plan, fund options, and retirement planning in general. We issue a quarterly newsletter that provides guidance and education above and beyond what is offered by the plan recordkeeper.