Your 401k Plan Might Cost Way More Than You Think!
I know how busy you are. Digging into the details of your company’s 401k plan probably isn’t at the top of your list, and I get it. I think it should be.
401ks are complex. 401k pricing is often very non-transparent. This is intentional.
Your plan’s pricing is non-transparent in order to disincentivize you from making any changes, or even bothering to dig into the details.
It’s Time To Benchmark Your 401k Plan Costs
What does that mean?
Benchmarking your 401k plan costs means first identifying what your plan costs are (sometimes it’s more complicated than you might think) and figuring out if they’re still competitive.
It also means finding out how much each service provider is receiving and what service(s) you are receiving for that cost.
Here’s Why You Need To Benchmark Your 401K Plan Now
It’s Your Responsibility.
As a CEO, CFO, or HR Manager, you have a fiduciary responsibility to make sure that your plan is up-to-date and that your participant fees are reasonable.
Technology is always getting better (ie. cheaper) and as your overall plan balance grows, you should be able to achieve better economies of scale. In other words, you may be paying too much!
Participants Are Taking Notice
It seems like everyday there is a new class-action lawsuit filed by plan participants against their employer for failing to benchmark their plan costs and make them more competitive.
This doesn’t just happen to small companies, big household names are in the news for this all the time.
One of the main culprits when it comes to excessive cost inside of a 401k plan is the cost of the mutual funds themselves. Most mutual funds have multiple different pricing structures (for the same fund) and it can be really complex to figure out how much they cost.
Attract And Retain Employees
Keeping your plan costs competitive isn’t just about not getting sued, it’s the right thing to do for your plan participants.
For most employees, their 401k balance is their largest asset that will contribute to their retirement income.
Having an efficient and cost-effective plan is imperative to your plan participants’ retirement readiness.
How Oak Road Wealth Management Helps You Benchmark Your 401K Plan
The first thing we’ll help you do is to find out what your plan really costs. Based on that result, we can help you figure out if your plan’s pricing is competitive or if there is a way to save money.
We’ll also talk to you about how we can help you deliver a better service experience to your employees. Most 401k plan participants have no idea that they have an advisor, don’t know who they are or how to contact them.
If you decide to hire us as your plan’s advisor, we’ll build your company a micro-site where employees can get access to their advisor and even schedule 1-on-1 meetings with them. What a novel concept!
Ok, ready to get started? Click here to schedule a no-cost consultation and we’ll help you get started benchmarking your plan costs.