A well-managed 401(k) plan serves as a powerful tool for boosting employee morale and goodwill, reinforcing the value the employer provides. Conversely, a plan that performs poorly or is operationally cumbersome can actively damage the employer-employee relationship. For smaller businesses, a properly structured retirement plan offers the dual advantage of significant tax savings and wealth accumulation. However, employers must recognize that an inefficiently or negligently run plan is a profound liability, not an asset.
Retirement plans are not a one-size-fits-all offering; each company’s plan is unique. These are the crucial questions to ask when reviewing your current plan:
Partner with a Qualified 401(k) and Pension Administrator to optimize your plan's service levels and reduce costs dramatically compared to your current provider.
Are your employees getting the attention they deserve? Ask yourself: When did your current plan representative last visit your company? TTG Financial ends the neglect. We offer a new level of service, featuring regular on-site visits by our Registered Investment Advisors who provide truly investor-specific counsel.
Fees, particularly asset-based fees, have a direct impact on investment performance. Employers have a fiduciary responsibility to ensure the fees paid by both the company and its employees are competitive and justifiable. TTG Financial helps you meet this duty by offering highly competitive, wholesale-level pricing.
Annual, expenses, especially on insurance based products can be quite high, oftenbetween 1.5% – 2% including all fees.
TTG attempts to keepall in fees close to 1% or less.Our fee shcedule is regressive – meaning the percentage drops as assets grow.
Each year Plan A could pay as much as $10,000 more in fees than Plan B.
If each plan were invested identically, assuming an average return of 6% per year, Plan B could have over $170,000 more in the fund at the end of 10 years!
Although investment management expenses are important,
perhaps the most expensive mistake a plan can make is to utilize underperforming investment options or to not have enough options so as to allow their employees to properly diversify.
Simply having multiple funds to choose from does not ensure
proper diversification. In many cases, employers carry many funds that all behave similarly.
TTG Financial uses a proprietary asset allocation program to help employers select the funds that allow for proper diversification.