Questions for new, pitching 401k Adviser for our company?

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StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

Questions for new, pitching 401k Adviser for our company?

Post by StevenNJ1 »

Our company's current 401k is bad, considering high expense fees (2.2%). Finally we have another adviser coming to pitch his services, 401k. I know about the fees and I know to push for ability to have index funds at low cost, but what else??? What questions should we be asking of a new 401k adviser?

Our meeting is tomorrow morning.

Thank you.
livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: Questions for new, pitching 401k Adviser for our company?

Post by livesoft »

It's all in the Bogleheads wiki:
https://www.bogleheads.org/wiki/Setting ... 01(k)_plan

See the part about the RFP
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Globalviewer58
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Re: Questions for new, pitching 401k Adviser for our company?

Post by Globalviewer58 »

Look at Employee Fiduciary website. Their goal is to be a low cost provider in the 401k industry.

The advisor will likely need to charge an AUM to participants in the form of higher ERs. How does this help the investor? Who pays the management fee? Many companies embed the management fee in quarterly fee charged to the employee.

We switched to Employee Fiduciary early this year after the former plan announced a price increase. The default investment is a Target Retirement Fund based on employee age. Low ERs and simple plan make this low cost and easy to manage for all participants.
SDLinguist
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Re: Questions for new, pitching 401k Adviser for our company?

Post by SDLinguist »

Also think about whether or not you are setting up a safe harbor plan.

I found out today that my Mega Corp, just shy of 300k employees, does not do after tax contributions because, while the plan is safe harbor, those still need to be discrimination tested. You would need an income of about 235k+ to max without safe harbor for our plan.

We apparently have an entire division just for employee benefits planning.
Topic Author
StevenNJ1
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Re: Questions for new, pitching 401k Adviser for our company?

Post by StevenNJ1 »

Follow up question ... it would help me if I knew exactly what it costs companies like ours to offer 401k. What determines the cost that company pays for offering 401k? thank you
livesoft
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Re: Questions for new, pitching 401k Adviser for our company?

Post by livesoft »

"companies like ours" means what exactly? I didn't see that in this thread.
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pkcrafter
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Re: Questions for new, pitching 401k Adviser for our company?

Post by pkcrafter »

Steven is this a large or small business/company?

Where is the guest speaker coming from?

https://www.marketwatch.com/story/every ... 2018-03-30

https://money.usnews.com/money/retireme ... 401-k-plan

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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