Approach Your Retirement Plan Like You Approach Your Business
By Daniel J. McGee CRPS is a Vice President for Business Development - Retirement Services with the Principal Financial Group. Dan is active in working within the consultant, TPA, RIA, wirehouse and independent broker/dealer channels. You may contact Dan at firstname.lastname@example.org.
Over the last few years we have read many articles regarding retirement plans, employer stock in plans, stock market declines, and participants lacking the knowledge to make wise investment decisions. While the reasons for this coverage are unfortunate, the fact that the light is now being shined on these issues is a good thing. Retirement is a significant life and financial event which should not be taken lightly. For the vast majority of Americans, retirement security (or lack of it) is going to be a function of three things; 1) does the individual have access to a retirement plan at their place of employment; 2) how much does the individual save; and 3) how does the individual invest his/her retirement savings. It's the first of these that I would like to address in this article.
Employers have a large responsibility when it comes to helping to ensure employees have a financially secure retirement. It starts with an employer implementing a plan but certainly doesn't end there. Implementing and maintaining a comprehensive and effective retirement plan is important and can be approached the same way the business approached starting their company. When we work with our clients, this is the mindset we try to encourage. Lets examine this approach.
Retirement plans, like businesses can be and indeed are complex. However, taking a practical, businesslike approach to implementing, evaluating and maintaining a retirement plan helps to keep all the "noise" out. With proper planning and the retention of competent professionals your business can be on its way to having plan fiduciaries protected, plan participants educated and overall plan performance elevated.
Other articles by Daniel McGee: Five "Best Practices" for Employer Retirement Plans and Opportunity Knocks.
401khelpcenter.com is not affiliated with the author of this article nor responsible for its content. The opinions expressed here are those of the author and do not necessarily reflect the positions of 401khelpcenter.com. This article is for informational and educational purposes only and doesn't constitute legal, tax or investment advise.
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