Cox Wealth Managemnt, LLC

CONNECT

Address:

6031 Shallowford Road, Suite 109
Chattanooga, TN 37421-1984

Phone:

(423) 894-3882 ,Toll Free (800) 929-3574

Fax/Other:

(423) 899-6502

401k Reasonable Cost?

Why should I Benchmark my plan?

As a plan sponsor you should Benchmark your 401(k) plan so that you have a clear understanding of the fees/costs being paid by the plan. By benchmarking your plan, you can reduce your liability, quantify ALL the fees you are paying and determine if the fees are 'reasonable'. Benchmarking almost always lowers costs, increases service and reduces your fiduciary exposure as a plan sponsor/trustee.

A spate of recent lawsuits has sought to impose liability on plan sponsors for "unreasonable" fees charged to plan assets (and participant accounts) by service providers such as investment managers, recordkeepers and plan administrators. A common allegation is the failure of plan sponsor to know, understand and account for the mutual fund revenue sharing payments (such as 12b-1 fees) received by plan service providers. This is NOT to suggest that your current service provider is charging you unreasonable fees but you clearly have a duty to know what your plan is paying for services and if such fees are reasonable.

What does Benchmarking cost and what does it do for me?

There is a cost or commitment associated with Benchmarking your plan based upon its complexity. One of our Advisors will meet with you and review your basic information, and offer a firm estimate of the cost involved. If we are retained as advisor to your plan then the cost is credited toward your normal fee. The Benchmarking of your plan is a best practice for liability protection, and we want to set you down the right path to understanding and evaluating the compensation paid to plan service providers.

After completing our fiduciary audit we will follow-up with a complimentary report detailing costs and fees associated with your current plan, balanced against industry average costs of similar plans, to provide you with a comprehensive outlook of your current investment environment and provide peace-of-mind that all associated costs / fees are disclosed and reasonable.

 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck