“An effective 401(k) advisor is much like a coach, coordinating the work of those with specific expertise in certain areas.”
What to Expect From Your 401(k) Advisor?
As an employer and sponsor of a 401(k) plan, your company shoulders a major responsibility. You must listen to the needs of your employees and then select the appropriate service provider(s) at a reasonable cost, determine the optimal plan design provisions, choose and monitor investments, keep up with legislative changes, ensure your plan is administered properly, and educate and inform plan participants. All of this hopefully results in a plan that inspires employees to reach their retirement dreams, while helping you recruit and retain valuable associates.
How do you know if your company is meeting these challenges? How do you select service providers or investments – what are the criteria? How do you know if your plan is working? Does your company have the resources to handle these responsibilities alone? Unless your company has individuals with 401(k) expertise who are solely dedicated to managing your employee retirement plan, you should consider hiring a financial advisor who specializes in 401(k) plans and is as dedicated to your needs as you are to your employees’.
An effective 401(k) advisor is much like a coach, coordinating the work of those with specific expertise in certain areas. Since you have the overall responsibility for all the various plan functions, it is important that you select someone who can manage the whole, rather than just certain parts.
Components of a Successful Plan
Like complex machines, 401(k) plans have many different moving parts that must be coordinated to run smoothly and meet the needs of the organization sponsoring the plan. These moving components – people, firms and systems – represent the delivery structure of the various service areas such as administration, investment management and employee communications. Delivery of these services in a format consistent with your organization’s expectations is critical. If the different components don’t fit well together or match your needs, the results may include incorrect depositing of funds, inaccurate and untimely participant information or IRS reporting, and/or employees who don’t understand, appreciate or participate in the plan.
In general, all 401(k) plans have the same basic objective – to serve as a retirement savings plan for employees. Yet there are many different 401(k) plan models that suit a wide range of specific company needs. The 401(k) advisor’s role is to help you set reasonable expectations, select the most appropriate plan, then manage all the components on an ongoing basis to help ensure a successful plan.
Why You Should Choose Us As Your 401(k) Advisor
As Raymond James financial advisors, we are objective and fully independent in making our recommendations to you and your employees. Because we do not offer a proprietary “in-house” 401(k) plan, we have no incentive to sell any specific product, but work with virtually all the different product and service providers in the 401(k) market.
We understand many factors are involved in the selection of 401(k) providers… each employer has specific needs and objectives that are important in this decision. As Raymond James 401(k) advisors, we assist companies in evaluating alternatives and then, after providers are selected, coordinate the different components of the 401(k) process on an ongoing basis. Our goal is to build and foster long-term relationships with you as well as with your company and its employees.
Since one of the most significant roles of a 401(k) advisor is to educate employees about investments, an important distinction is whether that advisor is familiar with the many intricacies of today’s investment alternatives. As a plan sponsor, it is important to make sure you have a knowledgeable investment professional advising you and your participants.
