As total assets held in 401(k) plans have gone up, so have fees—and unchecked, fees can eat away at your plan’s investment return.
At first glance, Employers may be tempted to buy the services of a turn-key 401(k) Plan Administrator. But the one size fits all solution can sometimes work against your Plan’s financial best interests.
Many 401(k) plans have a black-hole structure. Meaning you, as the Plan Sponsor can’t see
- who exactly is providing what service
- what fees are being charged and why
- where investment rebates are being deposited.
The alleged efficiencies of a canned 401(k) solution often come from the providers being bundled and interlinked. If for some reason you want to make a change, you basically have to take apart the entire plan and start over—a change that can be painful.
Forté organizes your 401(k) service team with open architecture service delivery and complete cost transparency. Forté’s approach: work with the Plan Sponsor to engage a completely unbundled set of service providers.
With this plug-and-play approach, your Plan has more transparency: what services are provided and at what fee. If any of your Plan’s service providers costs climb toward unacceptable levels, it’s possible to replace them without unraveling the entire Plan structure.
Forté’s approach ensures independent counsel, transparent fees and total team structure flexibility.