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401(k) Center

Plan Sponsors - You Can Bullet Proof Your Profit Sharing / 401(k) Plan Investments.

Crosshairs. As a pension fund trustee, you risk finding yourself as a target in the crosshairs each day. Few investments are more important to an individual than his or her 401 (k) retirement account. As the caretaker of that money, you run the risk of disgruntled plan participants or beneficiaries taking a shot at you. These potential snipers carry a big gun -- the courts and the Department of Labor. The bullets they use are the Prudent Investor Rule and ERISA. The injury to you is your personal net worth.

The purpose of this corner is to outline the steps you should review to take yourself out of the crosshairs, bulletproof your 401(k) plan investments and introduce you to a different way of approaching your fiduciary responsibility to your plan participants. You can have better reporting, better advice, better investments, better plan costs, and better plans for your employees.

Is there a better way?

Profit Sharing/401(k)

Plan Sponsors Who Know Better. . .

Know Better Reporting

Analyze performance rate of return, including contribution, expenses, gains, losses and distributions – see
performance calculated on a monthly basis.
Receive detailed employer contribution reports with accurate accounting detail and payroll records to ensure that you meet your fiduciary responsibility to your plan.
Benefit from quarterly recommendations and market updates.

Know Better Advice & Education

Uncover hidden costs that are the greatest source of employee plan dissatisfaction.
Expose your employees to the benefits of diversification and long-term rates of return. With a broader range of investment approaches available, your employees can tailor their portfolio to their current needs.
Offer diversified fund groups based on employee "lifestyle" needs. No one plan fits all.
Help employees make investment decisions based a "personal risk tolerance" assessment survey.

Know Better Investment Vehicles

Offer Institutional Funds vs. Retail Funds – Institutional Funds such as DFA offer long term investment growth without the initial operational costs of retail funds – think of it as buying factory direct.
Make available no load funds vs. loaded funds – Many funds build their marketing expenses into their investment vehicles and pass those costs on to plan participants.
Present a portfolio approach vs. stand alone approach – Few would disagree with the need for investment diversification. DFA funds are designed to be part of a diverse portfolio of investments.
Make it easy for your plan participants with "Lifestyle" choices – Groups of funds preselected for the varied needs of your employees. One click builds an entire portfolio of well-balanced funds.

Know Better Plan Costs – Did you know

Uncover hidden costs – Many plans bury costs in the plan performance where it is hidden from the view of par ticipants – this practice shifts some of the responsibility on the plan sponsor.
Reveal higher transaction costs – plans that take a buy and sell approach inherently produce higher transaction cost for participants.
Disclose Turnover costs, Conversion fees, Commission fees – Some plans expect you to believe that these costs of doing business don't exist – When these costs are either buried or passed on to plan participants an environment of miscommunication develops.

Know Better Plan Platform for Employees

Introduce big time plans to your small business – Technology and increased competition allows any size employer to sponsor plans with features formerly available to only the largest employers.
Make it high tech but simple to administer – Internet access and online support makes access and help a click away.
And yes, offer traditional printed paper reports delivered by the United States Post Office.
A challenging process made easier – Our conversion team has developed a "hand holding," highly organized conversion process that has successfully converted 1000's of plans.
Offer a full time electronic advisor – Our plans offer an "Automatic Rebalancing" feature that readjust funds to keep the desired balance of investments in line at all times.

Know Better Responsibility (Liability)

Engage an advisor that accepts shared fiduciary responsibility with regards to investment advice information.
Advisors Access becomes your 3(38) Investment Manager – the fiduciary liability for investment selection and monitoring has been shifted from the plan trustees to the investment manager.
Broker driven plans are currently the target of many Department of Labor investigations.

Contact a registered investment advisor representative at Cornerstone Wealth Advisors when you're ready to know better. At Cornerstone, our advisors are CPAs.

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