Work with a financial advisor for 401(k) retirement plan participation success

By Chief Investment Officer, Chuck Self on December 17, 2014

One of the advantages of working with an independent financial advisor is that s/he can recommend the best investment options for retirement plan participants. The recent academic research by professors at Indiana University, University of Texas and the Federal Reserve has proven that:

• 401 (k) plan trustees are less likely to remove poorly performing funds from an investment menu if they are affiliated with the plan trustee.
• 401(k) plan trustees are more likely to add poorly performing funds to an investment menu if they are affiliated with the plan trustee.
• Plan participants do not remove an affiliation bias by their investment choices.
• The subsequent performance of poorly performing affiliated funds indicates that these trustee decisions are not information driven.

If your retirement plan has many funds affiliated with the service provider, you may wish to have your plan sponsor interview independent advisors. Please contact Scott Jones at [email protected] or 800.869.5184 to be connected with such advisors.

Download the report here:
It Pays to Set the Menu: Mutual Fund Investment Options in 401(k) Plans

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iSectors Ready Go! 401K Retirement Plan Solutions