401k Plan Sponsors
IMYERS
Saving Your 401k
Investments
IMYERS assumes the role of fiduciary investment advisor. This removes the fiduciary responsibility for providing adequate diversified asset class investment options from the company. By removing the responsibility we also remove liability from the company's balance sheet and transfer it to ours.
We know we provide a diversified asset class allocation for each plan participant and contain our liability by providing fiduciary investment advice and investment selection.
Because we assume the role of a fiduciary for the plan we can also provide investment advice to plan participants. This allows participants to get true advice in how to invest their 401k and should increase participation in existing plans.
Fees
We provide full fee disclosure at both the plan and participant level helping companies meet their fee related fiduciary obligations. By helping you meet these fiduciary obligations we potentially remove the liability related to unreasonable or undisclosed fees.
Our 401k solution provides a perfectly transparent fee structure. This requires not using mutual funds because of their lack of fee transparency. We replace mutual funds with a unique diversified asset class allocation for each plan participant. By not using mutual funds we also lower the cost of most 401k plans.
Saving Your 401k
Investments
IMYERS assumes the role of fiduciary investment advisor. This removes the fiduciary responsibility for providing adequate diversified asset class investment options from the company. By removing the responsibility we also remove liability from the company's balance sheet and transfer it to ours.
We know we provide a diversified asset class allocation for each plan participant and contain our liability by providing fiduciary investment advice and investment selection.
Because we assume the role of a fiduciary for the plan we can also provide investment advice to plan participants. This allows participants to get true advice in how to invest their 401k and should increase participation in existing plans.
Fees
We provide full fee disclosure at both the plan and participant level helping companies meet their fee related fiduciary obligations. By helping you meet these fiduciary obligations we potentially remove the liability related to unreasonable or undisclosed fees.
Our 401k solution provides a perfectly transparent fee structure. This requires not using mutual funds because of their lack of fee transparency. We replace mutual funds with a unique diversified asset class allocation for each plan participant. By not using mutual funds we also lower the cost of most 401k plans.
Fiduciary Responsibility
"Decisions and/or functions that are clearly fiduciary in nature include proactively monitoring costs, selecting a proper number of efficient investments necessary to construct an appropriate portfolio and operating the plan in exact accordance to its purpose - which is to deliver retirement income to its beneficiaries."
Mathew D Hutcheson "Are Hidden Fees Undermining Employee Retirement Income Security" Written Testimony Presented to U.S. House of Representatives, March 6, 2007
"ERISA's prudent standard is not that of a prudent lay person but rather that of a prudent fiuciary with experience in dealing with a similar enterprise."
(Marshall vs. Snyder)
On February 20, 2008 the U.S. Supreme Court ruled that individuals have a right to attempt to recover losses in their 401k's they believe were caused by fiduciary misconduct.
"Decisions and/or functions that are clearly fiduciary in nature include proactively monitoring costs, selecting a proper number of efficient investments necessary to construct an appropriate portfolio and operating the plan in exact accordance to its purpose - which is to deliver retirement income to its beneficiaries."
Mathew D Hutcheson "Are Hidden Fees Undermining Employee Retirement Income Security" Written Testimony Presented to U.S. House of Representatives, March 6, 2007
"ERISA's prudent standard is not that of a prudent lay person but rather that of a prudent fiuciary with experience in dealing with a similar enterprise."
(Marshall vs. Snyder)
On February 20, 2008 the U.S. Supreme Court ruled that individuals have a right to attempt to recover losses in their 401k's they believe were caused by fiduciary misconduct.
The Problem
Investments
By failing to offer adequate investment options to deliver a diversified asset class allocation 401k plan sponsors create a liability equal to all lost investment opportunities for participants.
A recent study from New York University showed most 401k's fail to offer adequate investment options to properly diversify asset classes and the average inadequate 401k lags a properly diversified plan by 3.6% annually.
This 3.6% compounded annually for every participant of the plan constitutes the company's and each fiduciary's potential liability.
Fees
By failing to fully disclose fees to participants 401k plan sponsors create a liability equal to all undisclosed fees. ERISA requires the discloser of all fees and the determination that all fees are reasonable. When you don't know what all the fees are there's no way to justify them as reasonable, much less disclose them.
Research from the SEC, Morningstar and ICI shows mutual fund expenses average twice the disclosed expense ratio. The average expense ratio is estimated at 1.27% and the additional costs are estimated at 1.35%.
This 1.35% compounded annually for every participant constitutes the company's and each fiduciary's potential liability.
Investments
By failing to offer adequate investment options to deliver a diversified asset class allocation 401k plan sponsors create a liability equal to all lost investment opportunities for participants.
A recent study from New York University showed most 401k's fail to offer adequate investment options to properly diversify asset classes and the average inadequate 401k lags a properly diversified plan by 3.6% annually.
This 3.6% compounded annually for every participant of the plan constitutes the company's and each fiduciary's potential liability.
Fees
By failing to fully disclose fees to participants 401k plan sponsors create a liability equal to all undisclosed fees. ERISA requires the discloser of all fees and the determination that all fees are reasonable. When you don't know what all the fees are there's no way to justify them as reasonable, much less disclose them.
Research from the SEC, Morningstar and ICI shows mutual fund expenses average twice the disclosed expense ratio. The average expense ratio is estimated at 1.27% and the additional costs are estimated at 1.35%.
This 1.35% compounded annually for every participant constitutes the company's and each fiduciary's potential liability.