Plan Member Financial Corp. Review

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jen25w
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Joined: Mon Oct 29, 2018 7:26 am

Plan Member Financial Corp. Review

Post by jen25w » Thu Jul 30, 2020 7:34 pm

Hello my husband and I are finally starting to do some retirement planning. First things first, 401K. Our CPA wants to start us on a 401K through a broker called Plan Member Financial Corporation. Does anyone have any experience with them, good or bad? I did some research and checked the company our to ensure there were not major violations but maybe I missed something. Thanks in advance.

lakpr
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Re: Plan Member Financial Corp. Review

Post by lakpr » Thu Jul 30, 2020 7:56 pm

jen25w wrote:
Thu Jul 30, 2020 7:34 pm
Hello my husband and I are finally starting to do some retirement planning. First things first, 401K. Our CPA wants to start us on a 401K through a broker called Plan Member Financial Corporation. Does anyone have any experience with them, good or bad? I did some research and checked the company our to ensure there were not major violations but maybe I missed something. Thanks in advance.
Are you self-employed? With other employees? Small business?

I have not heard of that name, but typically Guideline, Ascensus and Employee Fiduciary are mentioned favorably here, for small-business 401k plans. All are low cost and will include Vanguard funds in the plan.

If I am way off base, ignore me.

000
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Re: Plan Member Financial Corp. Review

Post by 000 » Thu Jul 30, 2020 8:01 pm

Couldn't find any information about available investments on their site. Can anyone else?

Topic Author
jen25w
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Re: Plan Member Financial Corp. Review

Post by jen25w » Thu Jul 30, 2020 10:00 pm

I do own my own business but have no employees. Because I'm not a numbers person and frankly investing is scary to me, I'd prefer to have someone else explain the overall plan, but take the reigns in managing it.

My CPA is focusing us on 401K with medium-high to high-risk, I think he called is a level IV. Again I don't know a lot but I have tried to be diligent about looking up the company for fraud or major violations and didn't really see any. Backstory - we were using one CPA and were told I owed $12K in takes this year. After having a mild heart attack I looked around and found our now current CPA who found multiple mistakes by the initial CPA. I wound up owing $2600. That's a massive difference. It gave me pause and really made me feel like I could trust my CPA so I do not think he'd try and lead us in the wrong direction. IDK though.

000
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Re: Plan Member Financial Corp. Review

Post by 000 » Thu Jul 30, 2020 10:02 pm

CPAs are to my knowledge not prohibited from also being salespeople for financial products.

000
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Re: Plan Member Financial Corp. Review

Post by 000 » Thu Jul 30, 2020 10:05 pm

If no employees, a solo 401(k) could be possible.

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Re: Plan Member Financial Corp. Review

Post by abuss368 » Thu Jul 30, 2020 10:45 pm

jen25w wrote:
Thu Jul 30, 2020 7:34 pm
Hello my husband and I are finally starting to do some retirement planning. First things first, 401K. Our CPA wants to start us on a 401K through a broker called Plan Member Financial Corporation. Does anyone have any experience with them, good or bad? I did some research and checked the company our to ensure there were not major violations but maybe I missed something. Thanks in advance.
As long as CPAs disclose the relationship you are fine.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

Topic Author
jen25w
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Re: Plan Member Financial Corp. Review

Post by jen25w » Thu Jul 30, 2020 11:20 pm

Thank you. My CPA did disclose the relationship. It is a solo 401K.

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Duckie
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Re: Plan Member Financial Corp. Review

Post by Duckie » Fri Jul 31, 2020 5:37 pm

jen25w wrote:Our CPA wants to start us on a 401K through a broker called Plan Member Financial Corporation.
You probably would be better off opening a solo 401k at a mainstream brokerage. E*Trade is currently the gold standard. It has the most flexible solo 401k options.
My CPA did disclose the relationship.
Exactly what is the relationship between PMFC and your CPA? Does s/he get any kind of financial incentive for recommending PMFC.

lakpr
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Re: Plan Member Financial Corp. Review

Post by lakpr » Fri Jul 31, 2020 6:15 pm

+1 to Duckie (isn't it always?)

Just to expand on it a bit:

E*Trade is really the best-in-class when it comes to the Solo-401k plans. Its prototype Solo-401k plans offer the following features:
- Ability to do both Roth and Traditional contributions as employEE [Fidelity, in contrast, does not allow Roth contributions; Vanguard does]
- Ability to roll over external pre-tax (Trad.IRA etc.) assets [ Vanguard does not allow this ]
- Ability to do In-Plan Roth conversions, of pre-tax contributions made earlier, say from prior years [ This feature is not offered either by Vanguard or Fidelity, and may come in handy for you, for example, if you are having an unusually low income year and Roth conversions may be beneficial ]

The one knock I have heard on these forums again, against E*Trade, is that the annual contributions are capped at $19k (not even $19.5k, and not even catch-up contributions) through electronic transfer. Some software glitch, it seems. You can, however, make the contributions via check and it's processed normally.

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