TYPES of RETIREMENT PLANS
Sound Pension Advisors provides investment advice and monitoring for the following types of plans:
401(k) Plans
New ComparabilityPlans
Profit Sharing
Money Purchase
Target Benefit
Defined Benefit
TRANSPARENT PRICING
As Plan Sponsor, the employer and trustees are required by law (ERISA Section 404(c)) to ensure that all plan fees are reasonable. Every fee paid by the plan affects a participant’s investment return. We provide information on all costs paid by the plan including plan administration, recordkeeping, investment management expenses, finder’s fees, 12b-1, trading expenses, etc. The Plan Sponsor is better able to put in place a process to monitor and access if fees are reasonable.
There is a little known secret that the fund companies will pay recordkeepers and brokerages a portion of the fees collected by the funds. Many times the employer is unaware of these arrangements. The funds call this practice “revenue sharing”. This revenue sharing, again, affects the investment returns of the participants. We believe these funds belong to the participants. We collect any available revenue sharing and return it to the plan. This can then be used to either offset plan expenses or as a special dividend for the participants.
The average revenue sharing "rebate" is 0.45%. (This will depend on the funds used in the plan.)
EMPLOYEE EDUCATION
Because even the best designed plan with excellent investment choices is no good if no one participates, it is important to provide relevant retirement education to all employees so each employee can make an informed decision. Since a 20-year old needs different information than a 60-year old, we believe targeted education meetings are more beneficial than a broad general employee meeting.
Also since each individual has a unique situation, we are available to meet with each employee to help them determine how much they can afford to contribute and then determine their risk tolerance so we can build the proper portfolio so they have the best chance to retire with dignity.
For recordkeeping 401(k) Retirement Plans, we use an open-architecture platform. This allows the plan sponsor to choose from among over 12,000 mutual funds and Exchange Traded Funds.
Contact us TODAY for a FREE fee analysis of your 401(k) plan.