The Value Of Independent Fiduciaries

The 401k plans are mostly managed by individuals, who resist the fiduciary status, and most importantly the high level standards that are expected from fiduciary status. An Independent fiduciary, can provide substantial value. So what is the cost of hiring a fiduciary? Is it worth it?

Prudence is the cornerstone of all independent fiduciary actions and procedures. Such practice, if operated with prudence will yield excellent results for both the participants and beneficiaries. Lacking fee disclosure and transparency is another problem that we have been reading about, and which is very real.

Now since a fiduciary has the obligation to make sure that the 401k plan is paying only the reasonable expenses, therefore a fiduciary must know exactly who is being paid and how much. Appointing an Independent Fiduciary to lead this sort of investigation is a very wise decision, since the price structure of the 401k plans is a complicated and obsolete one. Such a professional however, has all the experience and expertise needed to uncover both explicit and implicit fees, which threaten the plan’s success.

High costs are already a problem with 401k plan performance, and when you combine this with a negative investment performance, the result is an unsuccessful retirement. Participants sometimes decide to take a do it yourself approach. Studies however show that such participants lacked sufficient knowledge and skill, and ended up with little gains on their 401k accounts.

A professionally managed approach will not only benefit the plan sponsor but should also deliver better returns over time for all the participants.

Achieving the best results in a retirement plan requires skill and diligence. Independent Fiduciaries have this skill and are able to spread the risk and increase benefits to the plan participants therefore securing them a better future. Hiring an Independent Fiduciary may be the difference between a marvellous retirement, or a horrifying one. Wouldn’t you want additional income worth thousands of dollars? This is the value of an Independent Fiduciary.

http://greenspringwealth.com/documents/TheValueofanIndependentFiduciary.pdf