Most 401k plans are analogous to something like this:
After seeing your doctor she informs you that you need to have a routine surgery. While you are concerned somewhat, she tells you that you are perfectly healthy and have nothing to worry about. Performing the surgery correctly will enable you to continue with an expected long and prosperous life.
But it must be done.
She refers you to a highly regarded clinic to have the operation. Upon entering the clinic you meet the receptionist. You receive lots of papers to sign, most of which abscond any responsibility of the surgeon. Costs are disclosed but hidden in fine print and coded in strange jargon. In reality, you don’t have a clue what the cost is but figure this is okay and must be the normal going rate.
You get called back and meet the surgeon and nurse. Both lovely people. They then show you all the equipment in the room: table, anesthetic, scalpel, needles, medication. The surgeon then gives you a rough draft of what entails a successful procedure.
At this point, the surgeon says “good luck!!” and he and the nurse leave the room. You are left to perform the operation on yourself! What’s worse is that you notice some of the operating equipment looks inferior. The scalpel is rusted. The meds are expired.
How successful would the patient be in this scenario? Not very. Thank goodness the medical field is more caring than the 401k business!
The Value of Outsourcing
The fact is 401k participants should not be doing their own surgery. As a small business owner, you know that the 401k plan is a great benefit for you and your employees. But some things about 401ks are not so great.
- For starters, many plans have hidden fees and expenses, some of which are simply too high.
- Oftentimes, the investment options provided are inadequate.
- 401k plans are time consuming for the business owner managing one.
Fortunately, there is a solution. You can have a better 401k. You can have lower fees, better investment options, and real advice. We are here to help you build a better 401(k)!
Contact us to set up a time to speak.