Millions of Americans register for a 401(k) through their job, but often discover too late that they are not on track to save enough for their retirement. According to a recent U.S. study, the average 401(k) plan participant only holds $42,000 in their retirement account and unfortunately are not receiving proper guidance from their plan providers. In fact, a recent spate of lawsuits has challenged plan sponsors regarding their responsibilities for participant education as well as excessive fees. Most plan sponsors don’t realize they automatically assume a fiduciary role and have personal (not corporate) liability at trustees or plan administrator.
So the question becomes: how can you be sure your plan and investments are on track toward financial peace of mind? Take your 401(k) into your own hands and bring it to a financial professional who will serve as an ERISA 3(38) fiduciary to mitigate your liability as a plan sponsor. One who will state clearly that they will serve in that role and is specifically bonded and insured to provide that service.
By Joe Bert, Certified Financial Planner™