Investment Needs for Employee-Directed Retirement Plans
401(k), 403(b), 457, and similar plans are unique in that investment decision-making is a shared responsibility between the sponsor and participant. Many plan sponsors draw on pension management experience, only to be surprised at the differences. Every decision is open to question and review by employees, former employees, and retirees.
| How do we… | Bellwether can… |
|---|---|
| Maintain a level of investment choice; service; and advice our employees find attractive? | Structure an investment policy based on your plan’s goals and objectives. We’ll help you determine which investment vehicles work best with your plan; which asset classes to offer; and which features you’ll need to keep the plan competitive. |
| Detect performance problems before our employees complain? | Provide on-going monitoring of your investments; ensuring they are performing as expected and alerting you quickly when they’re not. Conduct manager searches when necessary to expand your program or replace under-performing products. We’ll work closely with you to resolve issues before they become problems. |
| Balance the needs of inexperienced investors with demands from advanced investors? | Structure an investment program with appropriate complexity; using tiered design principles. Build an effective education program that targets investors based on their experience and how much time they are willing to commit. |
| Manage administrative costs without sacrificing fund performance? | Use constrained optimization techniques to find the best possible portfolio of investments in bundled programs. Our manager search methodology fully incorporates platform constraints and fee sharing arrangements to arrive at the best investment menu; given your administrative management and budget objectives. |
| Communicate effectively with our Board; key management; union; and others while resolving different points of view? | Develop clear written policy and mandates; putting all parties on the same page; distill volumes of detail into reports appropriate for the audience; facilitate meetings; challenge senior leaders with grace; provide clear and unambiguous recommendations. |
| Stay on top of the market? | Provide insightful market updates; conduct focused research to address any special issue; provide real opinions; not generic rules of thumb. |
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