7 Solid Practices for a Prudent Plan:

  • 1.Work with an ERISA 3(38) fiduciary— this provides plan sponsors confidence that the advisor is acting in your best interest—not his own.

  • 2. Exclude any revenue sharing funds from the plan— transparency helps you make sure that you get what you pay for.

  • 3. Don’t work with an advisor who is affiliated with a fund or a fund family— self dealing is just too easy for them.

  • 4. Work with providers who disclose any conflicts of interest— this assures fair treatment.

  • 5. Select funds based solely on what is in the best interest of the plan participants— risk-appropriate, low-cost and passively managed funds help participants get on the right track and stay there.

  • 6. Offer your participants pre-allocated globally diversified index portfolios which canvas varying degrees of investment risk— the right portfolio for each participant.

  • 7. Work with an advisor who is committed to servicing the plan and educating the participants— Selecting the asset allocation that best suits your participants is key to their success, along with making sure they understand the benefits of investing for the long term and avoiding speculation.