Welcome to the Advisor Services section of our site.
Our mission statement reflects our dedication to the advisors of our clients who are responsible in no small part for delivering the best possible retirement plan for our clients’ owners and employees. We seek your input and suggestions on ways to deliver exceptional our services to you and our clients better.
You can obtain the following information and services from this section:
- Request a proposal for designing or redesigning a retirement plan.
- Link directly to the websites of some of the mutual fund and insurance company 401(k) investment platforms used by our clients.
You can also send us an e-mail to request enhancements and improvements to the Advisors Section.
Requesting a Proposal
Plan design is a crucial component of setting up a new plan or taking over an existing plan. One of the services we offer to you, our advisor partner, is a no-cost review of your client’s employee information and objectives.
We will prepare a proposal generally consisting of a worksheet summarizing the available contributions and a cover memorandum that explains how we would design (or re-design) your client’s plan.
Click the link above "Requesting a Proposal" for instructions.
Testing Target Date Fund Strategies in the “To” and “Through” Retirement Debate
Target date funds are found in many 401(k) investment lineups and come in different types. The article below looks at target date funds, called “To” and “Through” funds, that are differentiated on the time horizon the investment manager uses to design his investment strategy.
The authors offer a way to compare the two types of funds and conclude that “Through” target date funds expose participants to considerable downside investment risk just as they are approaching retirement age. They also conclude that “Through” target date funds are inappropriate for participants’ past retirement age who are taking regular distributions from the plan.
Brokers as Fiduciaries
Financial advisors who work with qualified retirement plans are often asked questions about what fiduciary duties are imposed under ERISA on the plan sponsor and employees of the plan sponsor who administer the plan.
The attached guide was prepared by the US Department of Labor and is a good primer on ERISA’s fiduciary rules.
Fred Reish is an attorney who specializes in ERISA fiduciary matters and this article summarizes proposed legislation by the Obama Administration to impose fiduciary status on financial advisors to service ERISA plans and what that means to those advisors.
Investment Policy Statements
Most financial advisors we work with use investment policy statements (IPSs) with their retirement plan clients. This is unquestionably a “best practice” component for any advisor but what should be in a good IPS and perhaps what should be excluded? The following article by Fred Reish, Esq., identified four “problems” in IPSs he has reviewed.
Comment: It should go without saying that if you are going to have a client adopt an IPS, it better be followed. We never cease to be amazed how many IPSs are simply downloaded from a website and then “put in the file.” IPSs are not merely for window-dressing and “putting in the file.” They are among a fiduciary’s first line of defense in any challenge to how he/she has conducted the investment affairs of a retirement plan.
For additional strategies on best practices for ERISA fiduciaries, please visit the Advisor Services tab.
Evaluating and Benchmarking Investment Menu
A vitally important role a financial advisor provides to the retirement plan is assisting the trustees with evaluating and benchmarking the plan’s investment menu. Prudent fiduciary governance requires a written process and regular evaluations.
We strongly encourage all financial advisors who work with qualified plans to review this article:
Are You Just a Commodity?
"Nothing is more frustrating to the highly specialized and skilled professional of today than being viewed as simply another commodity." This quote is taken from an excellent article that every professional should read, whether you are an accountant, investment advisor or other professional.
With permission from the author, we proudly present the article below about how commodization is a scourage inflicting all professionals and what we can do about it.
We strongly recommend that every professional service provider download and study this important article.
Fiduciary Issues When Switching Vendors
The economic downturn invariably puts pressure on business owners to cut costs. We know of one mutual fund company who consistently underperformed in the market who has dramatically reduced their fees in order to attract new business.
Business owners and their financial advisors need to be very sensitive to their fiduciary duties under ERISA before they change plan vendors just to cut costs.
The following article provides an excellent discussion about the fiduciary issues which the owner and his advisors need to consider.
Fiduciary Best Practices
In 2008 the US Supreme Court handed down two important decisions affecting retirement plan fiduciary governance: the LaRue case and the Glenn case.
The following article was prepared by two attorneys that lays out strategies for plan sponsors and their advisors to be proactive for resolving plan disputes before those disputes end up in court.
The following article describes new procedures plan fiduciaries are adopting to reduce the potential for legal liability and governmental action.
Offering Investment Advice to Plan Participants
Financial advisors are generally limited to offering investment education to individuals who participate in ERISA retirement plans that require participants to direct the investment of their plan accountants. There have been legislative and regulatory proposals to permit giving participants investment advice.
The US Labor Department recognizes there is a demand for sophisticated advice, which generally only wealthier individuals have access to. However, the government is concerned about the potential for self-dealing.
In February 2010 the Labor Department issued proposed regulations designed to permit financial advisors to give meaningful investment advice to these participants. The attached article explains these new regulations and offers incite on how advisors need to reconcile the sometimes competing interests of themselves and their clients.
Links to Fund Providers
We offer in this section direct links to some of the mutual fund and insurance companies that are selected for the investment menu of our clients’ plans.
Click the link above for more information.
Message and Suggestions
This website is intended to be a resource to our advisor partners. We invite our partners to give us suggestions on ways to improve the functionality of the website and information you need access to.
If you need immediate assistance with a retirement plan matter, please feel free to e-mail us here or call Lee T. Jennings at 312-332-7733 (office) or 630-802-7644 (cell).
If you e-mail us, please enter “To Dana Consulting Group” in the Subject line of your e-mail.
Ask how we can assist you.
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