1/8/13 10:35 AM – New Year Resolutions for 401k Plans

If you are a business owner or executive with input on the 401k plan you should resolve the following in 2013:

1. Get a free FIDUCIARY RISK ANALYSIS – you are normally a fiduciary with PERSONAL FINANCIAL & legal responsibility & LIABILITY. You normally pay any ordered restitution & fines.

2. Do a COMPETITIVE COST COMPARISON on the investment options, administrators and investment advisors. Advisors usually charge too much and do/know too little. That’s a compliance issue.

3. Find out what you need to do to be in COMPLIANCE with ERISA and IRS regulations – most plans under $10 million are seriously out of compliance because their advisor doesn’t know better


5. If you don’t have a ROTH OPTION, get one, usually cheap or free. With certain restrictions, don’t ever pay taxes again on retirement withdrawals.

6. Don’t put up any more with poor SERVICE from the administrator or too little service and knowlege on the part of the investment advisor

7. Talk to someone new about whether you have the BEST TYPE OF PLAN, options and investments for your goals & your workforce

8. Get a review on the long-term PERFORMANCE of your funds vs. relevant benchmarks and categories

9. Make sure you have the cheapest share class for the structure of your 401k

10. If you don’t have a comprehensive INVESTMENT POLICY STATEMENT, fire your investment advisor & find someone to help you write an IPS & install proper monitoring – CRITICAL!

11. TALK TO ME, because I can help you with all the above

If you are a 401k participant, I may be able to benefit you by improving your plan or helping you make the best decisions.