What if your 401 (k) was managed like a large institutional pension plan?
Since traditional 401 (k) plans consist of typical mutual funds that buy high and sell low, you can increase your employee’s retirement package by hundreds of thousands of dollars over 20 years.
- Maximize Portfolio Performance
- Attract & Retain Top Talent
- Substantially Reduced Fiduciary Risk
Unbeknownst to many employers and their employees, traditional 401 (k) plans are broken.
The total cost of mutual fund fees in addition to fund management fees are excessive, and the mutual funds in traditional plans inherently buy high and sell low --- the opposite of sound investing.
The result is that in today’s compe -petitive job market, too many employees are frustrated that they don’t have enough money saved for retirement and, in turn, seek higher wages from their employer -- or worse -- their employer’s competition.
This situation produces unnecessary turnover, margin erosion, and lower business valuations.
What if your company’s 401 (k) was managed like the best-run large company pension plans, and it increased your average employee’s investment portfolio by hundreds of thousands of dollars over the next 20 years?
Would that support your program’s goal of attracting and retaining talent?
Benefits to Employees
Traditional 401 (k) plans assume employees have the information and experience needed to make sound investment decisions for themselves. Like the strongest pension plans in the United States, high-impact providers eliminate this stress by having professional money managers make investment decisions on behalf of their clients.
With a more enlightened architecture, employees just need to communicate their individual risk tolerance, and professional money managers do the rest.
Reduce Management Fees
Traditional 401 (k) plans are riddled with hidden mgmt fees that undermine plan performance and leave employees wanting more. Compared to traditional plans, high-impact providers reduce mgmt fees by 50%, putting clients in a position to maximize the return on their investment.
Retire In Style
Professional money management combined with a transparent fee structure is what allows employees to -- on average -- retire with an additional $150,000 dollars in their account.
Benefits to Employers
Transfer Fiduciary Responsibility
Leaving investment decisions to professional money-managers not only reduces pressure on employees, it reduces fiduciary responsibility for employers who often find it burdensome to keep up with the complex and ever-changing regulatory environment.
Less Administrative Work
Providing your employees with professional management reduces the need for investment education meetings, and reduces administrative work for HR teams.
In today’s intense battle for talent, employers need to do everything they can to retain talent --- without increasing operating expenses. Giving employees access to professional managers whose portfolios perform like pension plans at large organizations allows small and mid-size companies to compete with larger competitors and retain employees needed to grow their business.
“Before our partnership with professional money managers, we would be asked by our clients for help with their 401 (k). At the time, we didn’t have a solution for them because -- as far as we knew -- all 401 (k) providers seemed to be essentially doing the same thing...investing in mutual funds and placing most of the fiduciary responsibility onto employers.
That all changed when we met some high-impact providers...they educated us on how opaque the 401 (k) space had become and how their business model provided the transparency, alignment, and expertise needed to deliver measurable results in contrast to traditional vendors.
The more we dug into it, the more discovered that professional money managers are doing for the 401 (k) industry what Health Compass is doing for the group health insurance industry...reshaping failed verticals so that we can deliver measurable results for employers and working families in our communities.
Our shared values and experiences align to solve tangible problems for our mutual clients, and we look forward to growing and rebuilding the communities and markets we collectively serve”
- Donovan Pyle - CEO, Health Compass