Benefits of Upgrading Your Existing 401k plan rather than replacing it

The thought of replacing your existing 401k plan with a new plan provider may cause some executives to wonder if it’s worth the potential disruption to management. With the passage of the New Pension Protection Act in 2006, there is a new concern of plan trustees that their company retirement plan may need a fresh look. The New Act provides sweeping legislation, putting more responsibilities on the shoulders of Plan Trustees, their consultants and Plan Providers.

How to Select a Company Retirement Plan Consultant

ERISA states that plan trustees must periodically access the competitiveness of the current plan. Opening your plan up to review every 3-4 years is an excellent way to demonstrate that you are fulfilling that responsibility. You should consider at least three consulting firms. Competitors will be happy to pinpoint plan deficiencies and what they would do to correct them. Make certain you retain the proposals of all firms interviewed, your notes and summary of why you chose the winning company.

Who’s Managing Your Company Retirement Plan

Who’s Managing Your Company Retirement Plan
How effective are they?

Federal Law (ERISA) mandates that the employer, and retirement plan trustees are ultimately responsible for overseeing the process of your retirement plan. The Department of Labor (DOL) states that Trustees should have the proper tools to effectively manage the plan.

How Many Hidden Time Bombs are in Your Company’s Retirement Plan?

Hidden time bombs are major threats in a company’s retirement plan that could affect the integrity and reputation of the management team. In 2006, the Department of Labor (DOL) will be auditing about 1000 plans in the tri-state area. The audits are extremely disruptive to business.

Resurrecting America(TM)

Listen to online audio productions on “Resurrecting America(TM).”

Victory Asset Management Company

The National Society of American Business Owners publishers of “Wealth Creation Magazine” (TM) features Bud Verfaillie and Victory Asset Management Company.

Service Excellence in 401K Plans
by Bud Verfaillie

The test for greatness will vary based on what’s being graded. Rating the quality of an Investment Advisory Firm can be quite subjective and may not provide enough practical insight.

The financial services industry has been changing dramatically since the early 90’s with the increasing trend of offering commission free investing. Prior to November of 2007, anyone could call themselves an Investment Advisor without regard to experience or objectivity. With the Merrill Lynch Rule being vacated, the only professionals able to call themselves “Investment Advisors” are independent advisors who will acknowledge they have a shared fiduciary responsibility with their clients. This also includes providing full disclosure on how they are compensated.

Let’s assume you are able to identify those independent advisors. How do you really determine the quality of one firm over another? Making sure they have the appropriate designations such as an AIFA (Accredited Investment Fiduciary Analyst), PPC (Professional Plan Consultant) and CFP (Certified Financial Planner) is an important first step. Referrals are of little use, because the advisory firm is only going to provide you great references. How is a client or the trustee of a 401k plan going to conduct a complete review of several firms trying to locate that diamond in the rough?