How Do You Measure the Success of Your Retirement Plan?

This article was co-written by Miles Gibson.

There can never be enough questions for your Investment Committee to ask as it reviews your organization’s retirement plan. Understanding the underlying strategy of your plan’s investment options – and being able to communicate them – is critical. To better gauge the performance of your Committee, here are a few questions to ask at the next meeting.

What is the basis for the funds available on the menu?

“Wow, there are a lot of funds to choose from here; how do I make the best decision for me?” is a common question participants ask themselves when deciding from among investment funds presented. To smooth that process, the Investment Committee needs to add and remove funds, as appropriate, basing their actions and decisions on a procedure that’s well communicated in an Investment Policy statement.

Am I paying too much for these funds?

Maybe the first question that comes to every participant’s mind. With thousands of funds available, your Committee needs to explain why one fund costs more than the next. There are times when a more expensive share class is warranted, but the reasoning has to fit within the plan’s Investment Policy.

What, exactly, are we buying and how much does it cost for each participant?

It’s the fiduciary’s responsibility to determine that fees paid for services are reasonable and warranted, but it’s the participant’s responsibility to hold the fiduciary accountable. By asking the right questions, the participant can better understand the services being provided, and whether or not the fiduciary is acting in the participant’s best interest.

What will you do to keep the fiduciaries and the participants of the plan more informed?

It’s important for participants to be aware of what’s going on in the marketplace. Ask the Investment Committee how they will keep plan participants up to date with current economic market conditions, potential opportunities, periodic performance updates and everything in between.

If you have questions, or would like to discuss the process and procedures Schneider Downs Wealth Management Advisors follows to ensure our clients are meeting their investment fiduciary responsibilities, please contact Schneider Downs.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2022 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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