Smart Ideas from Allan Henriques

Allan Henriques

President and Chief Executive Officer

Would you like an analysis of your company's current

401(k) plan? Contact Allan Henriques at

allan@smart-investor.cc

for a complimentary assessment.

Retirement Plan Calculations Can Boost Savings and Retirement Comfort

Saving is essential for your plan participants' comfortable retirement. But how can you get them to boost their savings to reach their retirement goals? Smart Investor suggests you encourage them to calculate their retirement needs. Individuals who perform calculations tend to aim for higher savings, according to "The 2012 Retirement Confidence Survey: Job Insecurity, Debt Weigh on Retirement Confidence, Savings." Issue Brief (March 2012) published by the Employee Benefit Research Institute (EBRI).

Retirement Savings: Off-the-Cuff Estimates vs. Systematic Calculations

Many individuals don't take a systematic approach to figuring how much they'll need for retirement. In fact, 42% of workers guessed at the numbers, according to EBRI research. EBRI figures this is why so many workers underestimate their retirement needs.

Fiduciary Advisors Can Save Money for Plan Sponsors and Participants

Retirement plan sponsors often worrying that an independent fiduciary's services will be expensive. This is true especially if they're used to dealing with brokers, where the costs to participants were hidden. In fact, there's often no cost to the company for hiring an independent fiduciary.

401(k) Plan Pays Advisor's Fee if Conditions Are Met

Two fiduciary duties are key to how an independent fiduciary gets paid. The Department of Labor says fiduciaries' responsibilities include "Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them." This is the Duty of Loyalty, also known as the Exclusive Benefit Rule. It ties in with the fiduciary duty to pay only plan expenses that are reasonable relative to services provided.

Investment advice offered through Smart Investor, a Registered Investment Adviser.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

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