- What type of fees, and what is the cost of the fees the plan will be paying? (For example, fees normally include Recordkeeping, Administration, Investments, and Broker/Fiduciary Advisor)
- Are the investments mutual funds, ETF’s, and or collective trusts?
- Is there any Market Value Adjustments or Mortality and Expense charges on the contract?
- Are the investment offerings proprietary?
- Is the plan required to use some or all of the recordkeeper’s funds?
- What are the TOTAL fund expenses?
- Do the investments have any 12b-1, sub-ta, wrap, or concession fees? Where does that revenue go?
- Will the plan be paying any indirect compensation?
- Do you offer outside funds? If so, how big is the selection?
- How do you get paid?
- How were the investments selected that you are offering?
- Do you earn dealer concessions on the fund purchase?
- Do you offer investment advice?
- Are you a fiduciary to both the plan and participants? Do you put it in writing?
- Do you have an investment policy statement? What’s the process in the investment policy statement to monitor the investments?
- Lastly, ask for a proposal of all Vanguard funds to get a true cost of the plan.
About Managed Accounts
A “managed account” is a fee-based investment management product wherein everyone gets one of the “bucket” portfolios. At Risen Son Financial, we believe that sitting across the table and getting to know a participant and their individual needs, risk, and goals will always have better outcomes than putting them into a certain preset portfolio based on specific criteria. Here’s some questions to ask to see what’s in your best interest:
