Retirement Plan Strategy in a Shifting Market: What Employers Should Know

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When markets get noisy, something predictable can happen inside businesses: decisions may freeze. Plan reviews get postponed. Benchmarking gets pushed to “next quarter.” Questions from employees get quick, uneasy answers. It feels safe — but freezing is a decision too, and it may cost more than it saves.

At RWM Financial Group, we work with business owners navigating exactly this tension. Here’s what we tell them: market uncertainty is not a reason to stop managing your retirement plan. It’s the reason to review your strategy — calmly, deliberately, and on your terms rather than the market’s.

1. Fiduciary Responsibility Doesn’t Pause for Volatility

If you sponsor a retirement plan, you carry fiduciary responsibility — a legal obligation to act in your participants’ best interests. Many owners don’t realize this responsibility is personal, ongoing, and most visible precisely when markets shift. Documented, prudent processes — regular reviews, recorded decisions, oversight of investments and fees — are what demonstrate you’re meeting that duty. Ask yourself: if someone asked for evidence of your plan oversight this year, what would you show them?

2. A Plan You Haven’t Benchmarked Is a Plan You Don’t Really Know

Benchmarking means comparing your plan — fees, investment lineup, services, and design — against what’s available in the market today. Plans that haven’t been benchmarked in three or more years are often paying for a market that no longer exists. Recordkeeping costs have fallen. Investment options have improved. If you don’t know how your plan compares, you can’t know whether it still serves your business — and you can’t demonstrate prudent oversight.

3. Your Employees Are Watching the Market Too

During volatility, participants are tempted toward their worst decisions: stopping contributions, moving to cash after a decline, checking balances daily and losing sleep. Employers often underestimate how much steady, plain-language communication matters. You don’t need to predict markets — you need to remind people how long-term investing works. A short message from leadership or a well-timed education session can make a decade of difference.

4. Long-Term Behavior Is Built in Short-Term Moments

Retirement outcomes are driven less by any single year’s returns than by behavior across decades — consistent contributions, sensible allocation, staying invested. The same applies to plan sponsors. Many times the employers who come through volatile periods strongest aren’t the ones who made dramatic moves; from our view they’re the ones who kept a disciplined review rhythm and adjusted based on strategy, not headlines.

5. Supporting Employees Is Part of the Plan

A retirement plan is only as strong as the confidence employees have in it. Volatile stretches are when that confidence may be won or lost. Simple support — a note acknowledging the moment, an open-door session with an advisor, a one-page explainer on what volatility means for long-term savers — signals that leadership is paying attention. That’s retention value many owners never capture.

6. Does Your Plan Still Fit Your Workforce and Goals?

Businesses change: headcount grows, demographics shift, goals evolve. Plans often don’t keep up. Participation rates, match utilization, eligibility rules, and investment menus should reflect the company you are now — not the one you were when the plan was installed. If you haven’t asked “does this still fit?” recently, that’s the blind spot to start with.

 

Most plan problems we find aren’t investment problems — they’re attention problems. A plan that gets reviewed once a year, on purpose, with everything on the table, almost never surprises its owner. That’s the whole trick.

RWM Financial Group

 

The Cost of Not Knowing

Every blind spot has a price: unnecessary fees compounding against balances, fiduciary exposure you didn’t know you carried, employees who don’t value a benefit no one explains. What you don’t know is costing you — the only question is how much. Join our August webinar, “Retirement Plan Strategy in a Shifting Market,” or request a complimentary review of whether your current plan still fits your workforce and goals. Stop guessing. Start knowing.

Schedule a Review

 

 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.

There is no guarantee that the views or strategies discussed are suitable for all investors or will achieve desired results. Investors should consult a financial professional to determine what may be appropriate for their situation.

You Have a Retirement Plan. But Do You Understand It?

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Most people know they have a retirement plan.

Far fewer know how it actually works.

They’re contributing every paycheck. They log in once or twice a year. Maybe they glance at the balance when the market is up.

But understanding your retirement plan goes beyond simply participating in it.

Because having a plan and having a strategy are two very different things.

At RWM Financial Group, one of the biggest things we see during reviews is this: people are often doing the right things… without knowing why they’re doing them. And over time, that disconnect can create missed opportunities, unnecessary risk, and real confusion about whether your plan is truly supporting your goals.

 

1. Your Contribution Rate Matters More Than You Think

A lot of employees choose a contribution percentage once and never revisit it. But life changes — and so should your plan.

Income changes. Goals change. Retirement timelines change. What made sense three years ago may not make sense today. And even increasing your contribution by just 1–2% can make a meaningful long-term difference thanks to compound growth.

The important questions to ask:

  • Are you contributing enough to support your future goals?
  • Are you taking full advantage of your employer match?
  • Are you increasing contributions as your income grows?

 

Retirement planning is not meant to stay static. A mid-year check-in is a natural moment to revisit where you stand.

 

2. Employer Match Is Part of Your Compensation

One of the most overlooked parts of a retirement plan is the employer match — and it’s also one of the most impactful.

Many employees don’t realize they may be leaving money on the table simply by not contributing enough to receive the full match. That match is part of your overall compensation package. Not understanding how it works can mean missing out on significant long-term growth.

A mid-year check-in is a great time to review:

  • What your employer offers and how the match formula works
  • Whether you’re maximizing the match
  • How vesting schedules affect when that money is truly yours
  • How those contributions impact your long-term savings trajectory

“Your employer match is not a bonus. It’s part of your compensation.”

 

3. Investment Allocation Should Align With Your Goals

One of the biggest misconceptions in retirement planning is that choosing investments is a one-time decision.

Your allocation — how your money is divided between stocks, bonds, and other assets — should reflect your age, your timeline, your risk tolerance, and your financial goals. What felt appropriate during one stage of life may feel completely different later. And over time, market performance can drift your allocation away from where it started without you ever noticing.

Many people are invested too aggressively without realizing it. Others may be sitting too conservatively and limiting their long-term growth potential.

During periods of market volatility, understanding why you’re invested a certain way becomes even more important. That’s where education matters — not reacting emotionally, not chasing headlines, but understanding the strategy behind the allocation.

“Plan vs. Strategy: Having an account is a plan. Understanding how it’s built is a strategy.”

 

4. Fees Matter — Even When They Seem Small

Fees inside retirement plans are often misunderstood because they’re not always obvious. They don’t announce themselves — they quietly reduce your returns year after year.

Small percentages may not feel significant in the short term, but over decades they can have a real impact. Even a difference of 0.5% in annual fees can add up to tens of thousands of dollars over a 20–30 year timeline.

That doesn’t mean the lowest-cost option is always the best option. It means understanding:

  • What fees exist inside your plan
  • What services are attached to them
  • Whether the value aligns with the cost

 

Transparency matters. And asking questions about fees should never feel uncomfortable.

“Understanding your fees is part of understanding your future.”

 

5. “Set It and Forget It” Can Become Risky

Automating your retirement contributions is a genuinely good habit. It removes friction and ensures you’re saving consistently.

The problem is when automation becomes a reason to disengage entirely.

Life changes fast:

  • Career changes
  • Family growth
  • Income shifts
  • Economic changes and market cycles

 

Your retirement strategy should evolve alongside those changes. A retirement plan should not feel confusing or distant. You should understand what you own, why you own it, and whether it still aligns with where you want to go.

That’s why regular reviews matter — not because something is “wrong,” but because staying informed helps people make more confident decisions.

“Having a retirement plan is important. Understanding it is where confidence starts.”

 

Mid-Year Is a Good Time to Check In

If you haven’t reviewed your retirement plan recently, this is a good time to start. A few simple questions can go a long way:

  • Am I contributing enough?
  • Am I receiving the full employer match?
  • Do my investments still align with my goals?
  • Do I understand the fees inside my plan?
  • Has anything changed in my life that should change my strategy?

 

You don’t need to have all the answers. But understanding your plan is one of the most important steps toward feeling more confident about your future.

Whether you’re an employee reviewing your personal retirement strategy or a business owner evaluating your company’s plan, the team at RWM Financial Group is here to help guide the conversation.

Schedule a retirement plan review or mid-year check-in to better understand how your current strategy aligns with your goals.

 

 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.

 

How Companies Can Ensure Their Plans Align with Employee Goals-And How RWM Financial Group Can Help

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Alright, let’s cut to the chase—everyone wants to feel like they’re part of something meaningful, right? For companies, aligning their big plans with what their employees are aiming for isn’t just a nice-to-have; it’s a must if they want everyone on board, motivated, and ready to go the extra mile (without a grumble). Here’s a laid-back take on how companies can connect their big dreams with their people’s personal goals—and how RWM Financial Group is here to support you, from financial education to setting up 401(k)s that bring everyone closer to their goals.

Keep It Real with Open Communication

Start with good ol’ fashioned honest talk. Regular check-ins, genuine chats about ambitions, and the kind of culture where everyone can throw their ideas on the table make all the difference. Leaders, don’t just nod along—ask employees about what lights their fire! Whether it’s career growth or financial stability, open conversations lay the groundwork for connecting individual goals with company plans. Here at RWM Financial Group, we help companies communicate the importance of financial wellness by offering tailored workshops and one-on-one sessions on topics like retirement savings and 401(k) options.

Get Clear on Shared Goals

If the company’s goals are a mystery, how’s anyone supposed to get excited about them? Lay it out clearly—where’s the company headed, and why? When everyone knows the end game, it’s way easier to see how their own goals fit in. Clear goals aren’t just for big shots at the top; they’re for everyone, so make them simple, relevant, and inspiring. For instance, sharing the company’s commitment to providing a top-notch 401(k) plan can help employees see how their long-term financial goals line up with the organization’s priorities. With RWM Financial Group’s support, companies can set up retirement plans that serve everyone, from seasoned execs to the newest hires.

Give Development a Front Seat

If you want people to stick around and feel pumped, invest in them. We know that financial security is high on the list for most employees, which is why we offer services that encourage financial growth—like educating employees about maximizing their 401(k) contributions or saving for personal goals. These resources can make a big difference in how people feel about their jobs. From small business teams to larger corporations, RWM Financial Group provides tailored support for your unique workforce’s financial future.

Use a Goal-Setting Game Plan

Think frameworks like OKRs or SMART goals. Yeah, they sound a little corporate, but bear with us. These systems give structure to goal-setting and make it easy to see who’s crushing it. Plus, they give everyone a chance to brag (or reflect) on their progress. And just like with career goals, financial goals benefit from structure. We at RWM can help you create a structured 401(k) plan for your employees, enabling them to set, track, and adjust their retirement goals as they grow with your company.

Roll with the Punches

Employees’ goals aren’t carved in stone, and that’s a good thing. New skills, new passions, and sometimes just life mean goals change. Be open to mixing things up—whether it’s remote work, new projects, or different roles. A little flexibility keeps things fresh and lets people feel like they’re growing with the company, not just for it. RWM’s flexible approach to financial planning works the same way: we’re here to make sure your employees’ financial plans grow with them, whether that means updating 401(k) offerings, adjusting contributions, or addressing new financial education needs.

Show Some Love for a Job Well Done

When employees hit a milestone or crush a goal that matters to them (and the company), throw a little celebration! Public recognition, a bonus, or even a well-timed “Thank you!” can work wonders. Financial rewards and benefits—like a robust 401(k) match—are a big part of showing employees they’re valued. At RWM, we can help you set up a 401(k) plan that gives employees a financial boost as they work toward their personal and professional milestones.

Embrace Feedback and Keep It Moving

The road to alignment is paved with feedback—so make it a two-way street. Regular check-ins, team debriefs, and the occasional survey help everyone stay connected and keep strategies relevant. It’s like tuning a car; little tweaks here and there make sure it’s still running smoothly, no matter how long the journey. RWM Financial Group offers feedback loops for your financial plans, too, helping employees and employers review, tweak, and optimize 401(k) plans and other financial resources to keep everyone on track.

Share the Big Picture (Because It Matters!)

Employees don’t just want to clock in and out; they want to see the impact of their work. Tie their goals and contributions back to the company’s purpose—whether it’s creating the next great product, helping customers in meaningful ways, or just making the world a better place. When people see the bigger picture, it makes the day-to-day a whole lot more satisfying. At RWM Financial Group, we believe in building financial stability and growth for your team, which ultimately feeds into a stronger, more motivated company culture. With the right financial tools, like a well-managed 401(k) plan, employees feel more secure about their future—allowing them to focus on their work with confidence.

Aligning company plans with employee goals takes some effort, but the payoff? Worth every bit. By keeping communication open, investing in growth, and celebrating achievements, companies can build a workplace that’s fulfilling for employees and productive for the business. And RWM Financial Group is here to support every step—from helping employees get the most out of their 401(k)s to providing financial education for small businesses and large corporations alike. When everyone’s in sync, working together becomes a lot more fun, and success turns into a team sport.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

End of Year Retirement Plan Checklist: October -December Compliance Guide

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As we approach the final quarter of the year, it’s crucial to stay on top of important retirement plan deadlines to ensure compliance with the U.S. Department of Labor and IRS regulations. From timely deposits to participant notices, adhering to these deadlines will help keep your plan in good standing. Here’s a month-by-month guide to help you navigate the final months of 2024.

OCTOBER: Payroll and Enrollment Checks

Audit Payroll and Plan Deposits

Ensure that all third-quarter payrolls and plan deposit dates comply with the U.S. Department of Labor’s rules. This means verifying the timely deposit of participant contributions and loan repayments to avoid penalties.

Enrollment Follow-Up

Employees who became eligible for your retirement plan between July 1 and September 30 should have received and returned their enrollment forms. If any forms are missing, this is the time to follow up to avoid compliance issues.

Safe Harbor Notices

If you offer a calendar-year safe harbor plan, you must issue the required notices to employees during October or November. These notices are critical as they must be provided within 30–90 days of the beginning of the plan year. Additionally, if your plan includes features like an Eligible Automatic Contribution Agreement (EACA), Qualified Automatic Contribution Agreement (QACA), or Qualified Default Investment Alternative (QDIA), make sure the appropriate notices are distributed during this time.

NOVEMBER: Preparation and Communication

Plan Announcements

Start preparing announcements to educate employees on the advantages of your retirement plan and any upcoming changes that will take effect in January. Communication is key to ensuring employees understand and appreciate their benefits.

Encourage Address Updates

With Form 1099-R for reportable transactions set to be mailed in January, now is a good time to run a campaign encouraging participants to update their mailing addresses to avoid missing documents.

Update Enrollment Materials

Verify that all enrollment materials, fund prospectuses, and other plan-related information provided to employees are current. These materials should reflect any changes in the plan and align with regulatory requirements.

Quarterly Statements

Within 45 days of the end of the last quarter, distribute the quarterly benefit and disclosure statements to plan participants. This should include a detailed breakdown of plan fees and expenses charged to individual accounts during the prior quarter.

Annual Plan Notices

Prepare and distribute any necessary annual plan notices, including 401(k) safe harbor notices, QDIA annual notices, and automatic enrollment/default investment notices. These notices must be sent at least 30 days before the end of the plan year.

DECEMBER: Year-End Preparations

Year-End Compliance Testing

Begin preparing to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing. This is essential for calendar-year plans and ensures that your plan is in line with regulatory testing requirements.

Distribution Options for Terminated Participants

Verify that participants who left the company during the second half of the year have selected a distribution option for their account balance and returned the necessary forms.

Plan Operations Review

Conduct a thorough review of plan operations to identify any possible Employee Retirement Income Security Act (ERISA) or tax-qualification violations. If any issues are discovered, it might be necessary to use an IRS or U.S. Department of Labor self-correction program to remedy them before they become a larger issue.

By following these monthly action items, you can ensure that your retirement plan remains compliant and that participants are well-informed and supported. Staying proactive in the final quarter helps avoid last-minute stress and ensures a smooth transition into the new year.

Unveiling the Hidden Pitfalls of Retirement Planning: A Mission for Financial Maverick

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In the high-stakes world of retirement planning, navigating hidden fees and complex investment structures can feel like flying a jet through a storm without a radar. Much like the iconic pilots of Top Gun, who train to be the best in high-pressure situations, understanding and mastering your financial landscape is a mission that requires precision, skill, and the right team by your side. At the 28th Annual Conference in Durant, Oklahoma, RWM Financial Group took the stage—aviators on, Top Gun music playing—to guide attendees through the hidden pitfalls of retirement planning in their presentation, “Vanishing Assets: The Hidden Pitfalls of Retirement Planning.

Understanding the Roles: Financial Advisor, TPA, and Custodian – Your Financial Wingmen

Just as Maverick relies on his wingmen to execute a flawless mission, your retirement plan relies on key players: the Financial Advisor, Third-Party Administrator (TPA), and Custodian. These roles work together like a well-coordinated flight team. The Financial Advisor, your “Top Gun” pilot, leads the charge by guiding investment decisions, educating participants, and ensuring regulatory compliance. The TPA handles the operational logistics, while the Custodian safeguards your assets. Each plays a critical role in ensuring your retirement mission succeeds without a crash landing.

Hidden Fees: The Financial MiG Threats

In the same way Maverick faces unexpected threats in the sky, hidden fees are the silent MiGs of your retirement plan, capable of chipping away at your wealth without warning. RWM Financial Group emphasized that these hidden costs—whether embedded within investment products, commissions, or referral fees—can undermine your financial altitude. To stay in control, it’s crucial to demand transparency and keep your financial radar sharp, ensuring that every fee is disclosed and accounted for.

Best Practices: Your Flight Manual for a Successful Mission

Just as Top Gun pilots follow their flight manuals to complete each mission, RWM Financial Group recommends following best practices to ensure your retirement plan stays on course. Establishing an Investment Policy Statement, reviewing fee structures regularly, and ensuring that fiduciary duties are met are essential steps in your financial playbook. Like any good pilot, you need to know your instruments—monitor your fees, evaluate service quality, and always be prepared for course corrections when necessary.

Key Insights: Lessons from the Top Gun School of Retirement Planning

The conference highlighted that Tribal communities, much like elite pilots, face unique challenges and need specialized strategies to succeed. RWM Financial Group encourages building a strong support network—your own “squadron”—that understands Tribal needs and values. By tailoring programs to serve not just the current generation but the next seven, you create a lasting legacy, much like how the Top Gun academy molds future leaders.

Actionable Takeaways: Execute Your Mission with Confidence

As Top Gun teaches, executing your mission requires preparation, precision, and the ability to adapt under pressure. The RWM team’s actionable takeaways—such as conducting fee comparisons, ensuring fee transparency, and engaging specialized advisors—are designed to keep your retirement plan flying high. By reclaiming hidden assets and refining your strategies, you can lead your financial squadron to victory.

Flying through the complexities of retirement planning doesn’t have to be a solo mission. With the right team and a keen understanding of the landscape, you can navigate past hidden threats and secure a prosperous future. Just like Maverick and his wingmen, RWM Financial Group is here to guide you through the turbulence, ensuring your retirement mission ends with a successful landing.

Ready to take command of your retirement planning? Our team of financial “Top Guns” is ready to help you soar toward your financial goals with precision and confidence.

Tribal Trust Management Guide

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In many Native American communities, tribal trusts play a crucial role in providing essential benefits such as healthcare, education, and housing to tribal members. These trusts are typically overseen by employers who bear the fiduciary duty of acting in the best interests of plan participants. However, managing tribal trusts can be intricate due to their unique legal and regulatory landscape. This article aims to provide employers and plan participants with a comprehensive guide on effectively managing tribal trusts.

Understanding Tribal Trusts

Tribal trusts represent specialized forms of trusts established by Native American tribes to benefit their members. Governed by federal law, these trusts are subject to distinct legal and regulatory stipulations. They encompass various types, including land and resource trusts, education trusts, and health and welfare trusts, all administered by tribal governments with federal agency oversight. Compliance with specific legal and procedural requirements, including consultation with affected parties and adherence to relevant laws and regulations, is paramount for the creation and administration of tribal trusts.

Roles in Tribal Trust Management: Employers and Participants

Both employers and plan participants shoulder crucial responsibilities in managing tribal trusts. Employers are tasked with ensuring compliance with legal and regulatory mandates, monitoring trust performance, and furnishing plan participants with pertinent information. Clear communication channels between employers and plan participants are essential to ensure awareness of available benefits and comprehension of trust operations. Plan participants, on the other hand, must comprehend the benefits accessible to them, maintain up-to-date contact and beneficiary details, and promptly report any alterations in circumstances affecting benefit eligibility. Open communication with employers or trust administrators regarding queries or concerns is encouraged.

Managing Tribal Trusts: Best Practices

Understand Your Fiduciary Responsibility

Employers overseeing 401(k) plans bear the fiduciary duty to act in the best interests of participants, necessitating careful selection and monitoring of investment options, reasonable fee management, and provision of accurate plan information.

Select Appropriate Investment Options

Employers must meticulously choose investment options, considering participants’ risk profiles and ensuring a suitable mix of investments. Regular performance reviews and adjustments are advisable.

Monitor Fees and Expenses

Employers should ensure the reasonableness of fees associated with 401(k) plans, negotiating lower fees when possible and providing transparent fee information to participants.

Provide Participant Education and Communication

Clear and accurate information regarding 401(k) plans, including investment options, fees, and regulations, should be imparted to participants, supplemented by regular educational initiatives to aid informed decision-making.

Monitor Plan Performance

Regular scrutiny of plan performance, coupled with participant feedback assessment, enables employers to make necessary adjustments to meet participants’ needs effectively.

Encourage Participation

Initiatives such as employer contributions, automatic enrollment, and communication campaigns are instrumental in promoting plan participation, ensuring participants are adequately prepared for retirement.

Challenges in Managing Tribal Trusts

Managing tribal trusts presents various challenges, encompassing legal and regulatory complexities, communication hurdles, and financial management issues. Addressing these challenges requires proactive collaboration among employers, plan participants, and trust administrators to identify and mitigate potential issues effectively.

In conclusion, effective management of tribal trusts demands a deep understanding of legal and regulatory frameworks, diligent oversight, transparent communication, and proactive engagement from all stakeholders. At RWM Financial Group, we are dedicated to supporting tribal sovereignty and assisting tribes in achieving their financial objectives through a comprehensive suite of services tailored to their unique needs.

Learn More About Our Tribal Services

At RWM Financial Group, we are committed to upholding independence, excellence, and supporting tribal sovereignty to help achieve your tribe’s financial goals. Our extensive range of services include but are not limited to:

  • Tribal Council Retirement Plans, 401(k) Investment Management (both ERISA and Non-ERISA)
  • Children’s Trust Investment Management
  • Fiduciary Investment Management, Discretionary and Non-Discretionary Investment Management
  • Investment Monitoring
  • And,  Detailed Reporting

We also provide services such as Investment Committee Education, Tribal Member Financial Education, Third-Party Administrator assistance and Provider Liaison, 401(k) Provider Request for Proposal, Participant Education, and Financial Wellness Program, Onsite Meetings, and Retirement Plan Enrollment Assistance. Our team is dedicated to providing exceptional service and building long-lasting relationships with our clients.

The purpose of RWM Financial Group is to promote plan success via our knowledgeable team and a robust set of tools. By working with us, you can help put your employees on the path working toward a secure retirement. Learn more about our services, here.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice.  Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.  In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

2024 Compliance Calendar

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Stay ahead of deadlines with help from our annual Compliance Calendar. If you have any questions about deadlines or the information requested, please get in touch with us to review today!

Download the 2024 Compliance Calendar

RWM Financial Group is committed to providing solutions and support for yours and your employees’ retirement. Here’s a handy checklist to keep your retirement plan running smoothly:

  • Review plan documents: Ensure all information is up to date and compliant with current regulations. Don’t let any outdated policies slip through the cracks!

  • Communicate with participants: Engage your employees by sharing important updates, educational resources, and reminders about upcoming deadlines. Let’s keep them informed and motivated!

  • Evaluate investment options: Take a close look at your plan’s investment lineup. Are there any adjustments needed to align with participants’ goals? Let’s ensure a diverse and appealing selection.

  • Assess plan fees: Scrutinize the fees associated with your plan. Can any be renegotiated or reduced? It’s time to optimize your plan’s cost-effectiveness!

  • Conduct plan audits: Regular audits are crucial to maintaining compliance and identifying any potential issues. Stay ahead of the game and ensure your plan is in tip-top shape.

  • Enhance financial education: Empower your employees with financial literacy tools and resources. Help them make informed decisions for a secure retirement future.

RWM Financial Group takes pride in our roles as your Plan Advisors; we are dedicated to you, your plan, and your employees. We are here to support you every step of the way.

Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

Financial Wealth for Mental Health – 

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Creating Financial Education for Tribal Communities

Financial wealth for mental health—it’s a mouthful to say and it’s something that is so important, yet often overlooked. Financial stability is one of the key ingredients in having a good mental health outlook on life. Why? Because when you’re worrying about money, you’re not worrying about anything else. 

Financial education is vital for tribal communities who have been historically marginalized and left out of mainstream financial conversations. When tribal communities have access to financial education, they see improvement in their mental health, overall wellness, and economic status. 

In this blog, we’ll explore how financial literacy is the key to unlocking financial stability and mental health for tribal communities. 

Current Financial Landscape for Tribal Communities

It’s no secret that tribal communities have been dealt a hard hand when it comes to financial stability. From being forced to move off of their ancestral lands to being shut out of mainstream financial institutions, tribal communities have had to create their own unique financial systems. This has led to higher rates of poverty and financial insecurity within these communities. 

In fact, according to a report by the Federal Reserve, American Indian and Alaska Native households have a median income that is just 60% of the national median. This financial insecurity can lead to higher levels of stress and anxiety, which can impact mental health.

According to a report by the Financial Industry Regulatory Authority (FINRA), “nearly half of American Indian and Alaska Native adults say they don’t have enough money to live comfortably, and four in 10 say they are not saving enough for retirement.” The same report found that only 40 percent of AI/AN adults feel “very” or “somewhat” confident in their ability to manage their finances.

Contributing Factors

There are many factors that contribute to financial instability and poor mental health in tribal communities. Some of these include historical trauma, systemic racism, and lack of access to resources. 

Many tribal members live in poverty and do not have access to traditional banking services. As a result, they often turn to high-interest payday loans and other forms of predatory lending. This can lead to a cycle of debt that is difficult to break free from. Financial education can help tribal members make better decisions about their money and avoid costly mistakes.

Barriers

There are several barriers to financial education in tribal communities. One barrier is a lack of accessible and culturally relevant resources. Financial education materials that are not culturally relevant or understandable can be ineffective. 

Another barrier is a lack of trust in financial institutions. Many individuals in tribal communities have had negative experiences with banks and other financial institutions. This can make it difficult to build trust and open up about finances. Finally, a lack of financial literacy among adults can make it difficult to teach children and youth about money management.

Financial education can help to mitigate some of these factors by providing tribal communities with the tools and knowledge they need to build financial stability. Financial education can also help to improve mental health by teaching people how to manage their money in a way that is beneficial for their overall wellbeing.

Steps to Creating Financial Wellness 

Establish Financial Literacy

Start with the basics. Financial literacy is key. This means having a clear understanding of money, how it works, and what it can do for you.

It’s crucial to increase financial literacy. This can be done through financial education programs that are specific to the needs of tribal communities. Financial literacy will empower individuals within these communities to make sound financial decisions and build wealth over time.

Provide Access to Financial Education

Create opportunities for financial education. This can be done through online resources, community events, or even one-on-one conversations.

Increasing access to financial institutions and products can be done by working with financial institutions to create products that are accessible and tailored to the needs of tribal communities. It’s important that these products are culturally relevant and meet the unique financial needs of these communities.

Financial education teaches people about: 

  • Money Management
  • Budgeting
  • Saving and investing

And covers topics like: 

  • Credit and debit
  • Loans
  • Interest Rates
  • Financial goal setting
  • Home ownership
  • Financial scams and fraud

Financial education can be taught in formal settings like schools or community organizations. And it can also be taught informally through conversations between family and friends.

Another solution is to provide Financial Literacy Ambassadors in each tribe. These Financial Literacy Ambassadors would be responsible for delivering financial education to adults and children in the community.

Help Make it Easy

Make sure that financial education is “user-friendly” and easy for everyone to grasp. This means breaking down complex concepts and making them understandable for everyone. Most importantly, financial education should be culturally relevant. This means that it should be tailored to the specific needs of the community.

Final Thoughts

Creating financial education and wellness for tribal communities is so important because it can have a ripple effect of positive change. When tribal communities are financially stable, they are able to invest in their mental health, overall wellness, and economic status. This creates a cycle of positive change that can lift up an entire community. Financial literacy is the key to unlocking this potential. By providing access to financial education, we can help tribal communities thrive.

We at RWM Financial Group, specialize in working with tribal communities and offering tribal services. We are committed to the independence, excellence, and pursuit of your tribe’s sovereignty and financial goals. Reach out to our team to learn more.

How to Overcome Common HR Challenges in Your Tribal Organization’s Retirement Plan Pt. 2

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In the first part of this blog, we explained some of the standard HR and benefits challenges your tribal organization can avoid in your retirement plan efforts, including working with a financial advisor and tightening up your retirement loan policy. In part two, we explain how critical education is to the overall success of your plan and participants.

As a plan administrator, you have a fiduciary responsibility to provide adequate retirement plan education. In addition to the compliance risk a lack of education can pose, additional challenges arise when you don’t have a comprehensive education strategy. When overlooked, these challenges can cause issues for your participants and headaches for your HR and benefits team. Let’s discuss how you can improve your plan’s education to serve more people in your organization.

Challenge #1 A Lack of Plan Education Resources

When there is a lack of general plan education, employees will seek out assistance, generally from the HR and benefits team. This can put your team in a difficult position since they can’t offer thorough or professional advice regarding retirement planning. Organizations with successful retirement programs include essential information and guidance in retirement materials and sometimes even provide access to a third-party professional for additional help. When you’re building your retirement plan, education should be a critical step in your rollout. Consider what other resources, reminders, marketing materials, or access participants need to stay on track, enroll on time, and ultimately contribute toward their retirement success. Keep in mind, your education materials may shift depending on the employee’s position and salary.

Challenge #2 No Tracking System

Another common challenge is when tribal organizations have not established a tracking system for their retirement plan education. Perhaps you’ve provided resources to address the first challenge, but you don’t have a metric to measure their effectiveness. One way to measure is by looking at your plan’s participation and contribution rates. If they’re not performing as well as expected, you may consider what parts of your program materials or employee presentations need to be improved or offer more clarity to engage your employees.

Challenge #3 Missing Beneficiary Information

We often see tribal organization retirement plans with missing or partial beneficiary information. Many employees may feel pressured to choose an individual as a beneficiary when asked or may not know pertinent personal information and end up forgetting to designate one at a later time. However, with proper education, employees will better understand the ramifications of not listing a beneficiary. For example, upon their passing, an estate executor may distribute their savings against their desired wishes, or their surviving heirs may be subject to a lengthy and costly probate process. A regular review and additional marketing push around this critical step can also reduce the stress the HR team may experience when facilitating subsequent steps with an appropriate next of kin.

Challenge #4 Low Plan Participation Rate

A low plan participation rate is a clear indication that something is missing from your retirement plan execution. A lack of education, clarity, and resources can leave employees feeling confused or even uninterested in the valuable benefits available to them. We know you care about your employees, and clear and thorough education can help you guide them, with a focus on their retirement well-being and future confidence. Consider how you can engage your employees so they’re more inclined to participate and how you can encourage them to ask questions so you can identify gaps in their understanding.

Challenge #5 Contributions Below the Employer Match

An employer match is a valuable feature every eligible employee should know about in your retirement plan. It is why when we often see contributions lower than the employer match, it’s generally indicative of a lack of plan education. When employees understand the details of their plans and how contributing less than the employer match leaves free money on the table, an increase in contribution rates generally follows. When you see lower contribution elections, evaluate how you can emphasize this feature in your initial and ongoing presentations and marketing.

Many factors contribute to a successful retirement plan, but robust education can address several challenges you and your participants may encounter. Partnering with a specialized professional can help you identify the areas of your education strategy that need improvements, measure your plan’s success, and offer ongoing education resources to participants—in addition to reducing stress and frustration in your HR department. We’ve been helping North American tribes build effective education strategies into retirement plans for over 20 years. Contact us to learn how we can help you promote your plan’s success.

How to Overcome Common HR Challenges in Your Tribal Organization’s Retirement Plan Pt. 1

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As a human resources representative or benefits coordinator for a tribal organization, the implementation and management of your retirement plan generally fall within your responsibility. However, if your retirement plan and employee participation rates aren’t performing the way you would have hoped—or if you’re swamped with more work than expected—there may be areas within your plan that require some attention. This two-part blog post will explain the typical HR and benefits challenges we’ve encountered when working with tribal organizations and how you and your team can avoid or overcome them.

Challenge #1 Not Having Two Independent Retirement Plans

When a tribe doesn’t have two independent retirement plans, one for government employees and another for commercial, or enterprise, employees, a few issues can arise for the HR team. Retirement plans for government and commercial employees are subject to different regulations, such as ERISA and IRS compliance. When these plans aren’t properly established, the HR department faces the challenges of managing compliance issues, inefficient processes and systems, and potential risks to the organization.

With two plans created from the onset, it’s much easier for HR to coordinate employment transfers between their government and commercial entities, which frequently occur in tribal organizations. Plan documents and policies will establish how to handle the transfers while addressing compliance requirements. We recommend consulting with a plan advisor who can review your current plans and determine how your plan may be improved and what options are available to you.

Challenge #2 Having a Poor Retirement Loan Policy

Borrowing against a retirement plan may be an option available to your employees. This benefit can be especially helpful when your employees need it most, with unexpected financial hardship or unanticipated expense. However, when employees don’t use the option as a last resort, it can quickly become detrimental to the HR team and employees. For example, when misused, an employee may have multiple small loans outstanding at the same time. Employees are often unaware of or disregard the high cost of processing these types of loans and the tax penalties that may arise if they don’t pay them back within the set terms.

While it may feel convenient to use the retirement account as a revolving ATM, the high administrative costs—and the additional paperwork for the HR team—may not benefit the employee in the long term. Communicating the fees to process these types of loans and providing education regarding how retirement plan savings grow over time may help employees avoid dipping into their funds for nominal withdrawals.

Challenge #3 Not Partnering with a Financial Advisor

Any organization, including tribes, look for ways to minimize operating costs. As a result, we often see tribal organizations take on the implementation and management of retirement plans independently without the help of a financial advisor and to the disadvantage of their employees and organization.

Internally managing your plan is commendable. However, keep in mind that you could overlook many regulations and requirements in your retirement plan if you’re not working with a professional specialized in tribal organizations. Additionally, a third-party professional can help you identify areas of your program at risk, resolve compliance issues, monitor your investments, act as a liaison with your plan provider, provide employee education, and more. This assistance and guidance have the potential to take these responsibilities off of your HR and benefits team so they may focus on other employee needs.

Challenge #4 Not Investing Sufficiently in a Retirement Plan

No one can argue that providing healthcare benefits to your employees is critical to their peace of mind and well-being. However, in tribal organizations, we often see how HR and benefit coordinators invest more into healthcare and leave little or no resources for their retirement programs. When allocating little time, effort, and funds to the financial well-being of employees, tribal organizations often experience a lack of retirement benefit awareness, and lower contribution and participation rates among employees. We suggest working with a specialized professional who can explain the potential long-term benefits and help avoid the risks of insufficiently investing in your retirement programs, such as how a successful plan can contribute to your employees’ financial future and overall well-being.

Challenge #5 A Lack of Plan Education

Proper plan education among employees is the foundation to any successful retirement plan that supports them in their financial goals and future. Insufficient education, however, is the primary reason for various challenges tribal organizations face within their retirement benefits efforts. In part two of this blog post, we explain the issues that could arise related to plan education and how to avoid them for your organization and employees.

Retirement plans can be complex within tribal organizations, and managing your program requires a level of seasoned experience to help ensure you’re addressing compliance requirements while supporting your employees and tribal organization. Learn how we’ve helped North American tribes build effective and cost-efficient retirement plans for over 20 years, or contact our team to discuss your plan’s details and how we may help you optimize your program.