Backpacks & Retirement Plans: Embarking on a new chapter of your retirement plan, Back-To-School Edition
Almost as much as January's promise of new beginnings, Back-To-School time triggers nostalgia for fresh school supplies, new teachers, and a clean slate. Similarly, in the realm of retirement plans, there's a certain allure to starting anew – particularly when transitioning to a new service partner.
While we take immense pride in assisting small and mid-size business owners in establishing new retirement plans, a substantial part of our expertise lies in seamlessly stepping into existing 401(k) or 403(b) plans. Our journey of onboarding is akin to a series of 'first days' – introducing new solutions, sparking meaningful conversations, and even conducting a pop-quiz on past strategies. Onboarding isn't just paperwork and signatures; it’s a holistic approach aimed at tailoring retirement solutions to address the distinctive requirements of each client.
Discovery and Assessment:
At the outset, our team engages in thorough discussions with your plan. Understanding your business, your people, your organizational values, demographics, and financial goals is pivotal. We assess your existing retirement plan at a high level including evaluating employee participation & deferral rates, and gauge the appropriateness of the plan's investment options. We'll fully breakdown and understand the fees your plan pays, make sure they are benchmarked appropriately, and help you reasonably evaluate your options.
Customized Solution Design:
Whether it's a 401(k), 403(b), or another plan type, we ensure the plan meets regulatory requirements and maximizes benefits for both employers and employees. Armed with insights from the discovery phase, we meet with your team to layout a comprehensive appraisal of your plan as it currently stands. With your input, together we'll design a tailored plan that addresses identified areas of concern, with solutions that align with your objectives, annual timing, and bandwidth.
Investment Strategy:
Crafting an investment strategy is a crucial step. We will work to review, evaluate, or recommend an Investment Policy Statement (IPS). We analyze the plan's investment options, through a lens of the IPS, aiming for sector, asset class, and asset manager diversity and risk management. We consider investment expense ratios, revenue, administrative fees, 12b-1, and Sub-TA
Compliance and Fiduciary Guidance:
In the intricate landscape of retirement plans, adherence to regulations is non-negotiable. We guide plans through their fiduciary responsibilities, including training, documentation, reporting, and non-discrimination testing. Our aim is to create a compliant and sustainable plan.
Employee Communication and Education:
Employee education is another priority. We organize in-person or virtual group and individual sessions, as requested, to empower participants with financial knowledge, aiding them in making informed investment decisions. Education campaigns are supported by ongoing opportunities with your participants including timely & topical emails with market materials, ongoing newsletters, and incorporation of your recordkeeper's education programs.
Transition Support:
If the customized solutions collaboratively identified at the outset identified a need to change to vendors, we'll drive that process and oversee the work. Transitioning to a new retirement plan recordkeeper might seem complex, but we streamline the process. We work closely with your HR team to ensure a seamless transition for employees. Clear communication is maintained at every step, alleviating any concerns.
Ongoing Relationship:
Onboarding isn't a one-time affair. It's the foundation of a lasting partnership. As you & your plan's needs evolve, we provide ongoing support. Regular plan reviews, investment updates, legislative briefings, and compliance checks are part of our commitment.
Just as a new school year brings a fresh start, a change in service partner or the inception of a retirement plan ignites a sense of renewal. The process of onboarding, much like those first days of school, involves exploration, adaptation, and a commitment to growth. Just as students learn new concepts and forge connections with teachers and peers, businesses embarking on this journey discover new solutions, engage in impactful conversations, and fine-tune strategies for a secure financial future for their employees. So, as we usher in a new era for your retirement plan, let's embrace the Back-To-School spirit – with curiosity, anticipation, and the promise of progress. If you're looking for a Retirement Plan Advisor to help you start or manage your retirement plan, email us today, Christina.Tunison@lpl.com.
This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
#473362 August 2023