Ask Financial Finesse: Archive of Past Questions and Answers
Non-elective Contributions - What are the advantages and disadvantages of offering a non-elective contribution (for example, all eligible employees receive 1% regardless of their participation in the plan)? How can this work within a 401k plan?
401k Distribution Options - We are about to lay off a significant percentage of our hourly workforce and I want to make sure that they understand what to do with their 401k funds. What are their options?
Does Financial Education Really Work? - We have heard conflicting messages about it but are considering a financial education program, primarily to boost retirement plan participation.
Helping Workers Prepared for Retirement - A significant percentage of my retirement eligible workforce is still working because they cannot afford to retire. What can we do to help them be more prepared for retirement?
Helping Participants Understand the Benefits of Their Retirement Plan - How can I use my retirement plan enrollment meetings to help participants understand the benefits of investing in their retirement plan?
Strategies to Discourage Employees From Opting Out of a Plan - We are going to start automatic enrollment in our retirement plan at 1% for all eligible employees. We want to discourage our employees from opting out of the plan. What are some strategies we can use to keep them enrolled?
Issues Regarding Offering Company Stock in our 401k Plan - What are the pros and cons of offering company stock as an investment option in our 401k Plan?
Retaining Key Employees - How can we attract and keep key employees?
What are the trends in corporate financial education programs? - I work for the HR department of a large bank and need to recommend a financial education program to launch in 2005. What are the trends in corporate financial education programs? What are the most innovative companies doing?
Case Study: Hospital Doubles Retirement Plan Participation - The following case study deals with the 403(b) plan of Children's Hospital of Pittsburgh, but 401k plan sponsors face the same issues and the solutions used by CHP should be instructive.
What is the difference between investment education and advice? - What is the difference between investment education and advice and what are the potential risks to my organization should we decide to offer such a program?
When You Have Failed Your Discrimination Testing - Our company-sponsored retirement plan failed discrimination testing this year and its costing us over $1 million since we are adding additional funds on behalf of lower compensated employees to rectify the imbalance between our lower compensated employees and our higher compensated employees. What can we be doing to prevent this from happening next year?
The Ask Financial Finesse Q&A service is designed to provide general information on trends and developments in workplace financial education programs and participant education strategies. Due to the complex nature of financial benefits and/or workplace financial issues, the information contained in this document is not to be construed as advice. If you have questions about your specific situation, you, may want to contact a financial education consultant. Due to volume, Financial Finesse will be unable to answer all submitted questions.
About Financial Finesse: Financial Finesse is a full-service unbiased financial education company that works with Plan Sponsors and Plan Advisors to design company and plan-specific financial education programs that address the gamut of plan participant and business needs. Our award winning financial content is delivered in multiple formats: live, online, telephone, and through financial planning kits. If you are interested in learning more about workplace financial education programs, contact one of our education consultants at AskFF@financialfinesse.com.
