The key component of a successful ERISA qualified retirement plan is the design. The focus generally is on price/investments when it really should be on:
Once one obtains the answer to that question, one can begin to devise a targeted program. The first step is to sit down with the "powers that be" and get a feel for what the entity is trying to accomplish.
After the overall end line is established, then a budget for the benefit must be set.
This involves looking at the total number of dollars that will be
committed and seeing how they are allocated among the employees.
A major decision in this area is the demographics of the entity. A "year-end" census will give an indication of levels of likely participation and where the company contributions are going to land. It is imperative to understand the makeup of the employee base as it will indicate future success or failure of any cogent plan design. Poorly performing plans: lack of participation, non-targeted company contributions, unregulated eligibility, or spendthrift allocations; are the most common examples of situations that need immediate repair.
The Prizant Group, Ltd. provides consulting services for 401(k), 403(b), 457, ESOP, Cash Balance, and Traditional Defined Benefit plans. Our services can be engaged for:
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado St., Decatur, IL 62522. 217-425-6340.
The Prizant Group Ltd. is independently owned/operated and is not affiliated with Investment Planners,Inc. or IPI Wealth Management, Inc. You cannot invest directly into an Index. Returns represent past performance and are not a guarantee of future results. Check the background of this investment professional: http://brokercheck.finra.org/Firm/Summary/18557