5 Reasons To Hire the Right Financial Advisor For Your Retirement Plan
PUTTING PEOPLE FIRST
As an organization offering a retirement plan to their employees, plan sponsors are faced with decisions that can affect the entire organization. The plan design, investment line-up, and who the recordkeeper will be are typical for all plans. Beyond these standard decisions, there is the issue of knowing and understanding the ERISA laws that govern retirement plans. Depending on the complexity of your organization and business, not every advisor has the background to help.
Plan decision makers usually have other job responsibilities that can divert their attention, yet since they are considered fiduciaries of the plan, decision makers must act in the best interest of the plan participants and their beneficiaries. How can they if they don’t know what the standards are? The same is true of advisors. Not all are well versed in ERISA law, which is complex and sometimes difficult to interpret. Hiring the right plan advisor can help plan sponsors keep the plan efficient and compliant. While there are certainly others, here are five reasons Employers should consider hiring not just an advisor, but a retirement plan focused advisor:
Plan advisors can limit the plan sponsor’s risk of large losses resulting from lawsuit penalties, mishandling, audit fines and noncompliance penalties. Good advisors on 401(k) plans are typically experts in ERISA law or have an ERISA counsel at their disposal. Legal expertise is important because plans have many moving parts. Plan advisors serve as fiduciaries on the plan and therefore take on the responsibility of ensuring the plan operates properly
Plan advisors can leverage their resources to educate participants about the plan and improve overall plan health. In many cases, plan sponsors do not have the time, manpower or expertise to properly educate participants about the plan. Plan advisors are (should be) licensed investment professionals that can conduct seminars and meet with participants to encourage them to participate and prepare for retirement.
Plan advisors can assist with complicated merger, acquisition and transfer cases that involve a high level of due diligence and attention to detail. Many plan sponsors do not have the time to comb through plan documents, amendments, investment policy statements, and fund lineups to determine the best course of action when major plan changes occur. The right plan advisors can analyze and apply their expertise to ensure there are no breaches in ERISA law.
Plan advisors protect plan sponsors and participants from excessive fees. The fees are often obscure and difficult to understand at the participant level. Independent plan advisors can negotiate with recordkeepers to ensure the fee is competitive. On the fund level, plan advisors can review the fund lineup and incorporate funds with appropriate fees. Independent plan advisors can also identify and eliminate indirect fees that are hidden in the plan’s investments.
As investment professionals, plan advisors can ensure the best investment options are available to participants. Advisors will monitor the various funds’ performance, and replace underperforming funds with the best investment available.
Hiring a financial advisor on a retirement plan can reduce the workload for the plan sponsor and mitigate the stress involved in running a plan. Plan advisors will help the plan sponsor understand and manage their fiduciary responsibilities. They serve as a dedicated point of contact for plan sponsors when seeking guidance.
Innovative Investment Fiduciaries is an RIA that advises on over 50 retirement plans throughout the country. We specialize in advising on complex plans that require a high level of due diligence and attention to detail. If you have any questions about your plan and whether you should hire an advisor, contact Innovative here.
Feedback From Our Happy Customers
I wanted to take a moment and tell you how absolutely thrilled I am to have Innovative Benefit Planning as my broker. We moved over roughly a month ago and I have never received service like I have since making the transition. With so many employers being challenged with COVID19 and us making the move right in the middle, it could not have been more seamless. Everything was set up to exceed all expectations and it continues. Innovative Benefit Planning has taken the worry and stress away. It was truly the best decision for Title Alliance and I look forward to a long and productive partnership.
The Innovative team is well respected at AFS. My staff and I feel they are an extension of our HR team! Since implementation, they have always remained committed to assisting AFS with all of its healthcare needs; in fact, it doesn’t matter what time of day, they always respond in a timely manner.
Each year they come up with fresh material so our employee’s interest is always peaked. A few years ago, Innovative provided us with documentation to show that moving from a fully insured program to self-insured would be more cost effective for AFS, and it has been! Innovative has truly made our jobs easier so we can focus on other tasks.
As an HR professional, Innovative makes my job easier and benefits administration much less overwhelming than it would otherwise be.
They are truly a partner with me to make sure our team members have the best benefits and service around their benefits that we can offer. Innovative’s team is responsive, professional and resourceful. (They are at the forefront of knowledge in many areas, including ACA reporting and compliance, which can get highly complicated.)
As a client for the last 4 years, we love working with our Innovative Benefit Planning team because of their service model, scope , depth and quality of expertise in handling our benefits and renewals.
Their level of commitment just keeps getting better each year. They have more than met our expectations on renewal negotiations, response time, assistance with ongoing plans, open enrollment material, meetings, support, bill auditing, and wellness programs.
Since our partnership with Innovative Benefit Planning in 2017, it has been a seamless one. Innovative always provide options, suggestions and recommendations when it comes to our benefits renewal.
Innovative is always present even when open enrollment ends, their year round communication reminds me that I can always reach out for help at any time. Their professionalism is the utmost one can expect. My account representative Jenni is wonderful, courteous, knowledgeable and very helpful.
We have been dealing with Innovative Benefit Planning for many, many years. They have given us nothing but exceptional service.
We can pick up the phone or email them and they always resolve our questions and take care of our employees insurance issues in a very timely manner. They negotiate our insurance rates every year and have managed to reduce the increase every year. Every account manager we’ve had throughout the years have been great to work with.
I have been working with Innovative Benefit Planning for over six years. Previous to Innovative, I had used the same broker for about 25 years. I was used to doing everything myself during open enrollment with my previous broker.
When Innovative came on board, I was pleasantly surprised how “on top” of things they were. I never have to call them and bother them about getting rates to me for open enrollment, as they are in touch with our carriers on a regular basis, and they get me my information for open enrollment as soon as they receive it from the carriers.