(401K AND 403b Plans)
What to expect from our 401(k) Advisory Service
The employer sponsor of a 401(k) plan has a fiduciary duty to its participants. This includes:
⦁ Selecting the appropriate service provider(s) at a reasonable cost
⦁ Determining the optimal plan design provisions
⦁ Choosing and monitoring investments
⦁ Keeping up with the new legislative changes
⦁ Ensuring your plan is administered properly
⦁ Educating and informing plan participants
As an employer, it is important to hire a fiduciary retirement plan investment advisor who is knowledgeable in 401(k) plans and who is dedicated to helping you and your employees get the most out of their retirement plan.
WHY CHOOSE REPPOND INVESTMENTS, INC?
Reppond Investments, Inc. is unique because we use low cost index and sector ETFs in 40(k) plans whenever possible, such as iShares or Vanguard ETFs. The use of ETFs in 401(k) plans is rare. ETFs can definitely help improve investment performance for participants over time.
Reppond Investments, Inc. is a Registered Investment Advisor, which means we work exclusively for you – instead of a broker that sells investment products. We provide full disclosure of all fees received and do not “sell” products or receive commissions. Our recommendations are based on fully independent research, and include the use of ETFs whenever possible, as described above. We accept full fiduciary status under ERISA Section 3(38) as an advisor to your plan.
As your advisor, we are equipped to assist in the design an Investment Policy Statement (IPS). As a plan sponsor, you can minimize your fiduciary liability by implementing an IPS. The IPS outlines a detailed, prudent plan of action for the plan’s investment advisor to follow. This policy statement is intended to describe the plan’s investment philosophy, risk tolerance and long-term goals in order to help guide all decisions made regarding the plan. Because the IPS is in writing, it provides clarity of communication between you and the plan’s advisors.
We provide ongoing plan reviews of your plan’s operational metrics including participation levels, deferral percentages, loans, non-discrimination testing, enrollment, and communication services. We also prepare performance analyses of investments offered by the plan as opposed to other benchmarks and/or peer groups. We monitor the funds selected by the plan sponsor for style drift and correlation with fund investment objectives as stated in the IPS, while providing regulatory and compliance updates.
We manage employee communication about the plan and investment education necessary for them to understand their plan. We believe that coordinating enrollment meetings and providing ongoing investment education for participants regarding plan options is a valuable part of our service. To achieve this objective, we will be available to your employees by phone and in person for individual consultation. If enrollment and/or education teams from the provider are necessary due to multiple company locations, we will coordinate those efforts. We will also provide supplemental educational materials if desired.
HOW IS REPPOND INVESTMENTS, INC. COMPENSATED?
We are paid exclusively on a fee only basis. Our 401(k) advisory fee is an based on the amount of money under management and is normally paid out of the plan participant assets. In contrast, other advisors working for large brokerage firms or insurance companies have complex compensation agreements. These advisors are paid from investment management or revenue sharing fees built into the pricing structure of a packaged product. This type of compensation can be expensive and can lead to serious conflicts of interest as to what is truly best for the employer and plan participant.
We do not accept compensation from any third party or service provider; our only compensation is that which is disclosed to the plan sponsor and participants in the form of our asset based management fee. We believe that our fees are extremely competitive and are below those of most investment advisors.