Today we are continuing our series on how to structure a successful 401(k) plan for you and your employees. Specifically, we are talking about risk reduction and what it means to re-balance your 401(k) account so you can keep your portfolio in line with a predetermined growth strategy. To understand how to avoid risk, you Read More…
Creating a diverse 401(k) lineup will help you minimize risk and maximize market opportunity. But how is this achieved? The first rule of diversifying your 401(k) lineup is to invest in a broad range of asset classes that behave differently in different markets. To start, let’s talk about the two types of mutual funds to invest Read More…
People often confuse fidelity bonds and fiduciary insurance, so today I’d like to clarify the difference between them. First, one of them is required, while the other is not. A fidelity bond is mandated by ERISA, the Employee Retirement Income Security Act, which is a federal retirement law put in place back in 1974. It Read More…
If you’re sponsoring a 401(k) plan, you have a duty of loyalty and a duty of prudence to your participants and their beneficiaries. What does that mean? You must have a repeatable process and the selection and monitoring of your plan’s investment options. This means you need to hire and fire investment managers if they’re Read More…
Offering a retirement plan is a major benefit businesses can offer to their employees; yet I often come across clients who have lower-wage employees who do not participate. Most business owners assume their lower-wage employees don’t elect to participate in a 401(k) plan simply because they cannot afford to, but in reality the the lack Read More…
I had an interesting experience recently. A prospective client asked me to meet with her company’s administrative support staff to go over their retirement plan management procedures. I asked each member of the staff to explain to me the various duties each performed in support of their company’s 401(k) retirement plan and the amount of Read More…