Frequently Asked Questions
Q: How is a 401(k) Advisor Compensated?
A: An advisor can either be paid from the fees charged directly to the plan participants or plan sponsor, or from a portion of the investment management or servicing fee built into the pricing structure of a packaged product. In some cases, a combination of the methods may be used.
Q: Isn’t it true that you can only use “load” funds, or funds your company allows?
A: Through Raymond James, we have selling agreements with over 250 fund companies with over 4,000 funds to choose from. If we broke the funds out by different class shares, we have over 12,000 funds.
Q: What about fees and expenses? Aren’t the fees higher if we use an advisor?
A: The fee structures in 401(k) arrangements can be very complex; however, like many other products and services, you often get what you pay for. There are certain providers that compete based on price and market their services directly to plan sponsors as avoiding the unnecessary cost of and advisor. Such an arrangement typically works only if the plan sponsor dedicates someone on the company payroll to certain 401(k) functions...or the plan accepts less service. The direct providers do not work for free. Another aspect of cost is that of investment management. Again, certain providers compete on cost; but the cheapest rarely offers in depth services. Our team will provide you with all the information that you will need to to evaluate the costs of different providers.
Q: What if our company already has a plan in place we are just dissatisfied with the service?
A: Many of our new clients come to us with a plan already in place. We can take over the service on your current plan, typically with no additional fees or cost. We will even provide a complimentary initial plan consultation. Making this change is as simple as signing a change of agent form.