The Fiduciary Nightmare
Can you answer YES to any of the following five questions?
- Does your plan have an investment policy statement?
- Do you hold quarterly review meetings and document your results?
- If the department of labor walked in today and asked for your Fiduciary folder, could you find it?
- Do you evaluate and re-bid your vendor contracts every three years?
- Do you have regularly scheduled quarterly meetings with your current plan advisor?
Bonus Question: Is your plan advisor an Accredited Investment Fiduciary (AIF®)?
If you answered NO to any of the following questions, you may have a fiduciary nightmare lurking in your closet.
Level 1 – Limited Scope Fiduciary
- The plan sponsor retains fiduciary responsibility for deciding on recommended investments.
Level 2 – Full Score Fiduciary – ERISA 3 (21)
- The service provider who accepts this role takes on not only investment recommendations, but responsibility for the record keeping, operation, and management of the plan.
Level 3 – Investment Manager – ERISA 3 (38)
- A financial advisor engaged in this role has full fiduciary responsibility for the final decisions on the selection, monitoring, and replacement of plan investments.
What is it like to work with an AIF?
AIF promotes a culture of fiduciary responsibility and improves the decision making processes of investment fiduciaries and other financial service providers. AIF believes that you deserve a fiduciary standard of care and required to attest to the following code of ethics:
- Employ and provide the client information on the Prudent Practices when serving as an investment fiduciary and/or advising other investment fiduciaries.
- Act with honesty and integrity and avoid conflicts of interest, real or perceived.
- Ensure the timely and understandable disclosure of relevant information that is accurate, complete, and objective.
- Be responsible when determining the value of my services and my form of compensation; taking into consideration the time, skill, experience, and special circumstances involved in providing my services.
- Know the limits of my expertise, and refer my clients to colleagues and/or other professionals in connection with issues beyond my knowledge and skills.
- Respect the confidentiality of information acquired in the course of my work, and not disclose such information to others, except when authorized or otherwise legally obligated to do so. I will not use confidential information acquired in the course of my work for my personal advantage.
- Not exploit any relationship or responsibility that has been entrusted to me.
The Successful 401(k)
Employee Wellness Program
Riskalyze – Identify the employees risk tolerance at the following link (Riskalyze Splash Page)
Pre-enrollment Announcements – build interest prior to group enrollment meetings to maximize attendance.
On-Site Group Enrollment or Individual Meetings – Scheduled at your convenience.
Group Education Meetings – Help existing participants make informed deferral and asset allocation decisions.
Group and Individual Financial Consulting – We offer practical assistance to help participants select funds based on a customized risk profile questionnaire and plan specific asset allocation models.
Professionally Monitored & Managed Portfolios – All employees will have access to professionally monitored & managed portfolios that align with their Risk scores.
Schedule a time for a meeting or drop us a quick note using the blue “Contact” tool at the bottom of the page.