Unbundled 401k – the “All-Star Approach”
I use the unbundled approach to provide a seamless, comprehensive 401k solution for small and mid-sized companies. I bring together in your plan the best independent administrator, custodian and mutual funds I can find.
Revenue Sharing
You get significant quarterly payments from the mutual funds, typically 0.33% – 0.48% of plan assets. These represent money the mutual funds save in marketing costs. This $$ dramatically reduces the cost of your plan, often paying most plan administrative expenses.
Daily Valuation
Plans are valued daily so balances are always up to date.
Managed Account Options
Many participants are unsure how to choose from a list of 40-50 top mutual funds covering all major classes. So, in addition to the individual fund choices, there are managed choices with names like Moderate, Aggressive or Conservative. These blend the plan funds according to proprietary models and are extremely popular.
Simple Web Site & Online Tools
Clients may access their plan online to check balances, transactions, performance or to change allocations if entered before 3 PM Eastern Time. Retirement and financial planning tools are included as are fund profiles from Morningstar.
Free Consultation for Participants
I normally do an in-person update meeting once or twice a year. At that time, participants are welcome to meet with me for individual advice. They can call with questions anytime.
Transparent, Simple Fees
All plan fees are fully and clearly disclosed, unlike many plans from banks or insurance companies. There are no surrender fees. I send a quarterly notice detailing my fees.
Continuing Service
Plan trustees, management, your payroll department or participants may call anytime. Regular reports for trustees can be tailored according to their preferences.
Investment Policy Statement
All retirement plans should have an investment policy statement. If your plan(s) does not have one, I can help you write one. If you have one I can review it for you.
Keep Your Plan Up-to-Date
If you adopt the administrator’s plan document, they will keep it up-to-date with changes in laws and regulations, helping you keep your plan in compliance.