From the course: Helping Your Employees Meet Retirement Goals

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Questions to ask your financial service providers

Questions to ask your financial service providers

From the course: Helping Your Employees Meet Retirement Goals

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Questions to ask your financial service providers

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- When it comes to managing your retirement program it all begins with an effective relationship with your plans administrator. So when you sit down with them you need to make sure you come prepared. But how do you know key issues to focus on, and how best to manage your plan administrators so that you can build the best program possible? The three most important issues you need to focus on are fees, your program's complexity, and its participation rates. When it comes to fees, the lower the fees the more your employees will be able to save for retirement. And this is super important. A 1% fee might sound small, but when a fund makes a 5% return in one year that 1% fee takes 20% of your gains. For someone who's been investing regularly, over their lifetime this can add up to tens if not hundreds of thousands of dollars. The average total plan cost in the U.S. is .97%. Make sure yours is below this. When negotiating with your plan administrator look for simple funds that cost a…

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