Did Your Plan Costs Increase 20-30% in 2016-2017?

Congratulations on a nice growth in retirement plan assets in 2016 and 2017.

Now, how much did your fees go up?

If you have a single provider for your retirement plan and your plan assets are under $25 million, chances are very high that your plan fees went up at exactly the same rate as your plan growth. So, if your plan assets, including salary deferrals, matches and investment growth net of fees went up 20-30% or more during 2016-2017, your fees very likely went up 20-30% or more too. Ouch!

Worse, with a single plan provider, costs most likely went up, not just on the investments, but on record-keeping, custody, fiduciary services and administration too – even without an increase in service.

In a 2% inflation world, doesn’t 20-30% seem, “Just a little outside” of reasonable? Would you expect the recipient of that big increase to bring it to your attention so you could put an end to it? One would hope so, but…probably not.

How about looking into switching to a plan provider where most plan costs are fixed? That way, you can really celebrate when your plan grows. As an Accredited Investment Fiduciary and Professional Plan Consultant with decades of experience, I can show find ways to get your plan costs under control. Dave Hoshour AIF PPC 704-698-1040 Cornerstone Investment Services