DHJJ Partners with Vanguard For 401(k) Plan Cost-Savings
DHJJ Financial Advisors partners with Vanguard to provide employers with a 401(k)-servicing team that combines a small firm feel with the cost-savings leverage of a large institution. In this partnership, DHJJ Financial Advisors provides employee education and financial advisory services for the plan, while Vanguard utilizes its scale to provide low cost plan administration services in the realm of plan compliance, asset custody, a participant and employer help-desk, and an online platform for participants and the employer. Additionally, utilizing Vanguard’s reach, DHJJ Financial Advisors can assist the employer with selecting funds and building model portfolios from a list of nearly 13,000 investment options, many of which are the lowest cost options usually only available to large institutions.
Employers’ 401(k) Responsibility
Employers who sponsor 401(k) plans for their employees have a fiduciary responsibility to monitor, review and safeguard the plan for the benefit of the participants. Responsibilities include picking a prudent investment lineup, monitoring plan expenses and plan service providers, and complying with various administrative responsibilities outlined by governing laws and plan documents. These duties can be daunting for an employer, but with the right team of 401(k) service providers, you can gain confidence that your fiduciary responsibilities are met while providing your 401(k) participants with low cost, exceptional services.
Under this partnership, a primary goal is lowering 401(k) plan expenses while maintaining high quality services for the employer and the employees. Plan expenses are often tough for an employer to navigate due to the many ways a plan can be charged. Expenses can be charged to the employer directly in a variety of ways, such as deduction from plan assets and participant accounts, and discreetly embedded within the investments, effectively reducing investment returns. An evaluation of such fees will fulfill an employer’s fiduciary responsibility and it will likely return costs savings for both the employer and the employees.
How Can DHJJ Financial Advisors Help?
We encourage 401(k) plan employers to reach out to DHJJ Financial Advisors for a discussion on plan services and an evaluation of plan expenses. We anticipate your 401(k) expenses could be reduced and your 401(k) services could be improved. Please contact DHJJ Financial Advisors at 630-420-1360 if you’d like to review your current 401(k) plan and see if there is cost-savings potential.