Week 3: THE NEXT 10 WEEKS WILL TELL YOU IF YOUR EMPLOYER 401(K) PLAN IS IN GOOD ORDER ” INFORMATION IS FREE, IGNORANCE IS PRISON”
Today, people blame everyone else for their own ignorance. Our school have become responsible for raising our children, law enforcement is responsible not only to keep us safe from others, but also keep us safe from ourselves and employers are responsible for employee behavior. In this lentiginous environment which we live, it is now necessary to have someone to watch our back while we try to operate our day to day businesses and lives.
Owning and sponsoring a 401k plan for your employees is no different. Employers are being sued for a multitude of acts of negligence. Late employee contributions, lack of an investment policy, failure for disclosure notices to be dispersed, and high priced investment menus: can be challenges for an employer.
The 401k Plan is one of the most overlooked and neglected aspects of a company’s inventory and yet, it can become costly if not given the proper amount of care and consideration. Not only having an advisor, but having a knowledgeable advisor is integral in being responsible and address compliance requirements from a fiduciary and ERISA perspective.
A retirement plan focused advisor can help ensure that the TPA, if needed, is equipped to handle your business. He/she not only communicates well with you, but can provide a report with all of your employees regardless of the demographic. He/she is proactive rather than reactive, and has no affinity with a particular provider so that he/she may have your best interests in mind. Lastly, he/she is an educator who can sit with you and from your standpoint, assist you in addressing your retirement plan.
If your advisor does all of this, fantastic. If not, maybe a look in this direction couldn’t hurt.
See you next week.