Feb 10, 2016
Reasons for 401k plan review:
401k employee related lawsuits are becoming more of the norm these days because the fees that are charged on employer offered 401k plans are in many cases unreasonably high. Growing employee resistance, resulting from a greater awareness of plan costs, has resulted in more than 30 lawsuits against 401(k) plans and employers since 2006. Many employers have been routinely providing to their employees traditional retail mutual funds, age based retirement or “in-house/proprietary” options that are now either antiquated and ridiculously expensive compared to alternatives, such as ETF’s, that exist in the marketplace today.
In many retirement plans, a significant amount of future retirees’ funds are devoured by fees. According to a 2012 study published by the progressive think tank Demos, high 401(k) fees can drain $155,000 from an average household over a lifetime. Higher-earning households can lose even more — up to $278,000.
Expenses, perhaps the largest target for 401(k) suits, can be the easiest to vet because fees can be compared across plans and funds. In the somewhat opaque world of 401(k) expenses, often only an audit by an independent fiduciary who knows how to compare similar plans can determine whether you are being overcharged. ()
Client First Advisors, acting as a fiduciary, is offering to perform a complimentary audit and plan comparison review for your company at your earliest convenience. Best case scenario, we discover your plan is not vulnerable to such suits and is in compliance with the new government regulations. Worst case scenario, we discover that we can give your employees a better chance at a fulfilling and financially secure retirement.