Hi, I am a partner in a small physician group with over 50 employees. Our 401k plan contains high fee funds with 1.2% average expense ration. I am currently working with our manager to switch to another company such as Employee Fiduciary or Paychex. They offer low cost funds and lower admin fees for 401k, way better than what we have.
The problem is we have financial advisor with our current 401k plan. Clearly she is not doing her job based on high fund ERs but employees may meet with her to discuss investing strategy. Employee Fiduciary and Paychex's 401k does not include financial advisor but may services available for a fee (like $15,000/yr). Neither I nor my partners see investment benefit in having financial advisor and we do not utilize her services. But my partners feel it is necessary to have financial advisor to prevent risk of lawsuit from employees.
My questions are - is it protective for employer to offer employees access to financial advisor as part of 401k? Are there many 401k plans who offer access to financial advisor free to employee or majority of 401k do not include financial advisor service? Is my partners' fear of lawsuits for bad investment decisions by employees due to lack of access to financial advisor have any merit? Thank you.
The problem is we have financial advisor with our current 401k plan. Clearly she is not doing her job based on high fund ERs but employees may meet with her to discuss investing strategy. Employee Fiduciary and Paychex's 401k does not include financial advisor but may services available for a fee (like $15,000/yr). Neither I nor my partners see investment benefit in having financial advisor and we do not utilize her services. But my partners feel it is necessary to have financial advisor to prevent risk of lawsuit from employees.
My questions are - is it protective for employer to offer employees access to financial advisor as part of 401k? Are there many 401k plans who offer access to financial advisor free to employee or majority of 401k do not include financial advisor service? Is my partners' fear of lawsuits for bad investment decisions by employees due to lack of access to financial advisor have any merit? Thank you.
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