Significantly Reduce Risk
401kPRO will become an investment fiduciary for your plan. ERISA Section 3(38) allows for the delegation of investment related responsibilities to a qualified third party. This will insulate you and your company from legal responsibility for investments in the plan and poor investment selections by your participants.
Make Your Plan Better
401kPRO will be a great benefit to all your employees by integrating individual investment advice into the plan. It is foolish to think that investment education meant to satisfy the 404(c) safe harbor is sufficient to educate your employees about how to invest for their future. A recent study shows that the average investor's return trails the stock market by more than 10%. Adding advice to your plan will make it more valuable to everyone involved.
Low Cost Indexing Strategy
A passive investment strategy will minimize expenses of your plan. Research shows a majority of 401(k) participants never change their portfolio allocations. Therefore, investor behavior is not congruent with an active management strategy. It's a fact that paying high fund management fees will only give you the privilege of higher returns and not the right to such. An indexing strategy is a no-apology approach to investing.
Ability to Provide Assistance
Many employees go to HR hoping to receive investment advice for their 401(k) plan, but HR is unable to take on the fiduciary responsibility of providing that advice. With 401kPRO, they now have the ability to refer employees to a financial professional that can help. 401kPRO will help your employees feel confident investing for their future.
Increased Enrollment
Under IRS rules, discrimination testing limits the amount that executives can invest in the plan. When a company’s overall participation is low, highly paid employees can’t contribute the maximum to their tax-deferred retirement plans. 401kPRO can help to increase enrollment and contributions because participants will feel confident that they have the best possible portfolio.
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