One of the major problems with 401(k) and similar defined contribution plans is that the people who set them up are not really that interested in them. Nobody runs a business for the purpose of having and managing a 401(k) plan. Like insurance and other employee benefits, retirement plans are a side issue for employers, often a distraction from their job of running the business. Besides that, the typical business owner may be good at running a dry cleaning business, a medical practice or an automobile dealership but he’s not an investment professional.
As a result, the typical 401(k) may have a selection of mediocre funds, high expenses and little or no guidance for the employees regarding their investment choices.
This is where some innovative Registered Financial Advisors can make a huge difference. Not only can they provide the business owner unbiased guidance with regard to the investment choices in the plan and help to reduce plan expenses, but also provide guidance to plan participants in creating a portfolio that’s right for them.
Korving & Company can help both the plan sponsor and the employee to maximize the benefit of their 401(k) and transform it into a 401(ok).