Navigating the 401(k) Adventure: A Friendly Guide to Fiduciary Best Practices with RWM Financial Group

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Hey there, savvy decision-makers at RWM Financial Group! Let’s chat about the nitty-gritty of your 401(k) game plan and why keeping an eye on those investments is a big deal. We get it, steering through the fiduciary responsibility maze can be a bit overwhelming, but fear not – we’re here to guide you with a friendly chat and a sprinkle of expertise.

So, you’ve got this investment committee, right? They’ve got their hands full selecting and keeping tabs on the investment options for the retirement plan. No pressure, but it’s a crucial task. But guess what? You’re not alone! There’s a buffet of resources out there to help you make those informed decisions without breaking a sweat.

Why bother, you ask? Well, staying proactive and clued up on these matters can be your secret weapon against potential legal headaches. Nobody wants to be tangled up in lawsuits about excessive fees or ERISA violations. Trust us, it’s not a fun ride.

Your Fiduciary Responsibilities

Let’s dive into the fiduciary responsibilities for a moment. As a fiduciary, you, the plan sponsor/employer, have a duty to act solely in the best interest of the participants. The Department of Labor says, “Hey, be prudent, diversify those investments, and keep the risk of big losses in check.”

Now, we know it’s a complex dance, and that’s why you might want some dance partners. Cue the 3(21) and 3(38) advisors. The 3(21) buddy is like your co-pilot – offering counsel and guidance without taking the wheel. On the flip side, the 3(38) advisor takes full control of the investment decisions, letting you sit back and relax.

Investment Policy Statement

Let’s not forget the Investment Policy Statement (IPS) – think of it as your GPS for the plan’s investments. It’s your roadmap, ensuring the plan’s goals align with its investment approach. Plus, it’s the committee’s handy tool for evaluating the retirement plan’s performance.

Evaluate, Benchmark, and Assess

Now, when it comes to evaluating, benchmarking, and assessing – it’s like giving your plan a health check. Are those goals outlined in the IPS being met? Is the fee structure reasonable? Time to compare your plan to the cool kids in the market to see how it measures up.

Oh, and setting up a 401(k) plan? We get it, the U.S. tax system can feel like a rollercoaster. But fear not! With the right help, even the smallest business can confidently rock a 401(k) plan. Automation is the name of the game, and a financial professional specializing in these plans can be your sidekick.

What is Fiduciary Liability Insurance?

Let’s talk about fiduciary liability insurance – your plan’s superhero cape. It’s not required, but it’s a smart move. This insurance provides legal protection if someone claims a fiduciary duty breach or mismanagement of the retirement plan. No capes against fraud, though – that’s where the ERISA fidelity bond steps in.

Fiduciary Oversight, Financial Integrity

So, my friends at RWM Financial Group, overseeing a retirement plan is a big deal, but with the right squad of fiduciary experts, including those 3(21) or 3(38) advisors, you’ll be cruising smoothly. A well-managed plan and investment strategy? That’s your ticket to an optimized plan and happy employees reaching their retirement goals.

Contact RWM Need a hand in the 401(k) adventure? Drop us a line! We’re here to answer all your burning questions and help you navigate those fiduciary responsibilities like seasoned pros. Cheers to financial well-being!

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 advice services must be obtained on your own separate from this educational material.