Who is Responsible for Your 401K Plan?
Independent fiduciaries are starting to play an important role in the retirement system for many company employees who are fortunate enough to have an employer who truly cares about the quaility of life of it’s retirees. When a company hires an independent fiduciary firm to handle their employees retirement plan, they company is putting an independent professional in charge who is obligated to make decisions based solely on the best interests of plan participants.
Independent fiduciaries are appointed by companies who sponsor their employees 401K Plan or similar savings plan. The independent fiduciary is then responsible for the plan, typically handling administrative functions as well as investments. This enables a company who wishes to sponsor their employees 401k retirement plan to focus on running their business, not a retirement fund.
Employers that utilize an independent fiduciary firm are providing a very real benefit to their employees by allowing these employees the benefit of unbiased professional advice and management so the employees my enjoy more of their savings in their retirement.
As the financial industry, particularly the investment industry, has been under fire lately in the media, many companies wish to distance themselves from any responsibility for their employees investments in their retirement accounts. This is a wise decision, as few companies can offer employees valid advice regarding maximizing the retirement savings through wise investments.
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