Hi White Coat Investors
Question for all the smart ones out there. I am currently in the process of revamping our practice’s 401k profit sharing plan.
We are in Texas. We have 48 employees, 9 providers, 3 of the 9 providers are partners in the practice. We are looking at switching investment platforms from a high fee/expense ratio platform to a lower cost platform like Employee Fiduciary or Vanguard (unbundled). We are comfortable selecting our own mutual fund line up and we will choose a select number of Vanguard funds that mimic the Thrift Savings Plan funds. We will keep our local TPA as their fees are reasonable and they do a good job with new comparability cross testing and have kept us out of trouble there. We have not had a financial advisor for either 3 (38) or 3 (21) fiduciary services to try to save costs.
Some of the employees have been asking for some financial advisor services to help them pick their fund mix. We were leaning toward NOT hiring a financial advisor. I know this comment may generate some controversy, but we have done our due diligence and we understand the we do not have to have a 3(21) or 3(38) financial advisor. So I am not looking to hear from anyone out there about why we are putting ourselves at liability risk by not having one on this post.
IF we hire an advisor we basically want to hire the adviser to only assist the employees in selecting the funds from the available choices and possibly to provide educational seminars to the employees.
I’m having a hard time finding an advisor that will do just that and only that. Anyone know of any good options for that type of service with reasonable low costs?
Thanks in advance!
Question for all the smart ones out there. I am currently in the process of revamping our practice’s 401k profit sharing plan.
We are in Texas. We have 48 employees, 9 providers, 3 of the 9 providers are partners in the practice. We are looking at switching investment platforms from a high fee/expense ratio platform to a lower cost platform like Employee Fiduciary or Vanguard (unbundled). We are comfortable selecting our own mutual fund line up and we will choose a select number of Vanguard funds that mimic the Thrift Savings Plan funds. We will keep our local TPA as their fees are reasonable and they do a good job with new comparability cross testing and have kept us out of trouble there. We have not had a financial advisor for either 3 (38) or 3 (21) fiduciary services to try to save costs.
Some of the employees have been asking for some financial advisor services to help them pick their fund mix. We were leaning toward NOT hiring a financial advisor. I know this comment may generate some controversy, but we have done our due diligence and we understand the we do not have to have a 3(21) or 3(38) financial advisor. So I am not looking to hear from anyone out there about why we are putting ourselves at liability risk by not having one on this post.
IF we hire an advisor we basically want to hire the adviser to only assist the employees in selecting the funds from the available choices and possibly to provide educational seminars to the employees.
I’m having a hard time finding an advisor that will do just that and only that. Anyone know of any good options for that type of service with reasonable low costs?
Thanks in advance!
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