So it’s your first day of school at 401(k) University and you’re not too sure what to expect. We get it. Any undertaking that winds up being rewarding starts with the first step and today is that first step.
I’m here to be your pilot and walk you through the winding maze that is Retirement Planning. How hard can it be? You just sack a little away each year and then you have a nest egg when you retire, right? I wish it were that easy. Instead, I’m going to show you how to navigate the world of tax-advantaged retirement plans. Yes, it is a tangled world of compliance, government regulations, investment philosophies, and hidden fees. However, is this beyond your understanding? Absolutely not.
As your professor, I’ll be arming you with everything you need to know to be a well-informed Plan Sponsor and a true Fiduciary to the retirement plan (don’t worry, there will be a lot of words you may not know the meaning of initially). We’ll be starting with some of the most basic questions like “What is a 401(k) Plan”, “What makes one plan better than another?”, and “Which plan is right for my particular group of employees?”. We will then build a foundation of who you should be interviewing when setting up your first retirement plan and how to properly run an evaluation of the candidates. Once you have selected the team that will be supporting your plan, it is your job as the Plan Sponsor to oversee this team and make sure the retirement plan is operating in the best interests of the plan participants.
I will share all of the knowledge you’ll need to pull back the curtain and see what’s really being proposed when you’re considering retirement plan providers. Once a plan is in place for the employees, you’ll know what is expected of you as a Plan Sponsor and how to double-check your providers to make sure they are doing their job properly and for a reasonable fee. Finally, I’ll show you how to promote the retirement plan to the employees so they are excited to have a retirement plan in place and they are provided with the resources to build and manage their own strategies to meet their retirement goals. This may all sound like a lot but I’ll be breaking it down into bite-sized pieces. Believe me, we are not going to eat the whole elephant in one bite.
Knowledge is power. My job in this classroom is to give you the power to offer your employees one of the greatest gifts you can give as an employer – the gift of financial independence.
Welcome to Day 1 of your Freshman Year at 401(k) University. I’m Professor Deters and I’ll be your teacher…