From Christine DeCorte & MassMutual Financial Group, 702.371.1000

My 401 ain’t broke, so don’t fix it, (k)?

As business owners, you are undoubtedly peppered throughout the year with calls from various prospectors, wanting you to upgrade this, take another look at that, and generally improve your business. Sometimes, these prospectors may have some good timing—call it the luck of the dial—as to your current concerns. Usually, the improvements you decide on increase efficiencies or enable improved workflow, but come with costs that have to be weighed for effectiveness over the long run. Conversely, changing your company’s retirement plan provider may save you thousands of dollars right away by lightening the fees you are paying for your plan’s services.

The retirement plan you had originally set up for your company may not be the most suitable one for you now. A little known fact is just how much the retirement plan market has changed over the last few years¹. Plans are available now that can save companies thousands of dollars in administrative and fund management fees. That’s money that can go right in your pocket—or toward improving your new phone system, of course.

Three areas to look at when reviewing your retirement plan with your trusted Financial Advisor are: Fees, Funds and Fiduciary Responsibility.

1. Fees can be tricky: some providers are better than others about disclosing administration and management fees of funds as well as any wrap fee that may exist. Also, some providers have changed their pricing structures and your plan may still be set up on the older (and more expensive) pricing model.

2. Funds: Many providers are moving toward an increased proprietary requirement, meaning more of your funds in your lineup have to come from only one fund family². With the recent scandals from fund companies, that trend is in direct opposition to the theory that multi-fund family plans offer you ways to avoid funds or fund families that are under scrutiny.

3. Fiduciary Responsibility: As we become a more and more litigious society, fiduciary concerns are heavy in the minds of business owners. Making sure to offer funds in each style box, asset allocation funds, meeting ERISA requirements and accurate administrative services are just a few of the keys to ensuring fiduciary stability.

Working with a team of professionals who handles this type of business is a must. One of the ways to help ensure you are getting an objective opinion is to hire a Financial Advisor as a consultant to aid you in your review. That advisor can assist in setting up vendor presentations for you, aimed toward meeting your criteria and customized toward the size of your company.

Attracting and retaining excellent employees isn’t easy. Your company’s retirement plan can be an appealing benefit for employees, but it doesn’t have to cost you as much as you might think. A review of your current situation may find you are good where you are, but as your company grows, so do your options.

To set up a review of your company’s retirement plan, contact: Christine DeCorte at 702-371-1000 from Mass Financial Group.

¹ Van Kampen Targets—Achieving Defined Contribution Success, 2003.

² Van Kampen Targets—Achieving Defined Contribution Success, 2003.

C: 058948-000 8/04

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