Why do you need a Retirement Plan Advisor?

Why do you need a Retirement Plan Advisor?

Plenty is written on the subject of personal retirement planning, but the value of corporate retirement plans is often understated.

Many people assume that a retirement plan advisor is interchangeable with a traditional financial advisor or wealth manager, and while they do overlap in some ways, there are plenty of differences as well. While traditional advisors specialize in tax, insurance, and estate planning, retirement specialists focus on plan operations and design, compliance, fiduciary responsibilities and the overall retirement marketplace.

Why Do You Need a Retirement Plan Advisor?

A plan advisor works in conjunction with employers to build a plan that caters to their needs and directs them toward a secure retirement. After the right plan has been established, the advisor continues to work with employers to manage and update it as needed.

A well-designed retirement plan accomplishes a variety of objectives:

• Maximizes contributions and benefits for owners and key executives
• Incentivizes employees save for retirement
• Aligns employer contributions to the plan with company profitability
• Recruits and retains top talent
• Educates employees about retirement planning, investing, and other financial concepts
• Helps employees understand how much potential income they can generate from their accounts in retirement
• Keeps fees reasonable and transparent to help account balances grow

Plan advisors provide education and guidance on operational best practices. They can offer input on plan design, communicate the benefits to employees, and steer clear of compliance issues and related penalties after the plan is in place. Plans are complex, and the rules surrounding them are constantly changing. Advisors will save the company time and money spent to learn the ins and outs of retirement planning and allow the company to focus on what’s important – their business.

How to Get the Most out of Your Retirement Plan Advisor

While investments are surely an important tool to grow savings, even strong investment performance can’t grow the account much over the long-term without sufficient ongoing contributions. A retirement plan advisor can both help employees find the right investment mix and help them understand how much to save to meet future income goals after retirement.

The current state of the economy, the uncertain future of Social Security, and paying expenses and debt all contribute to financial stress. That stress negatively affects health and productivity, potentially leading to performance issues at work. Access to an objective financial professional via an employer retirement plan has shown to increase retirement confidence and preparedness.

Studies have shown both that employees welcome help managing their 401(k) and other retirement accounts, and that employees who do receive professional investment management have higher account balances and better-performing investments than those who don’t. Unbiased guidance will add to your existing benefits package and improve employee engagement, allowing them to retire on their terms.

OptiFour Integrated Wealth Management is a multi-disciplinary wealth management firm that helps individuals, high-income retirees, business owners, and enterprising investors reach their life goals with financial planning and implementation. To learn more about how our solutions can help solidify your financial future, please visit our homepage.