Benchmarking Your Plan

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Today I want to talk about the power of benchmarking your plan.

So the real question is, how can you as a company that sponsors a 401k or 403b plan, turn your plan from a liability into asset that gives you an unfair advantage, and become a 401k superhero to your employees?

That is the question and these videos will give you the answers. I’m Jonathon Schultheiss and welcome to the Ultimate 401k Advantage videos.

I was hired several years back by a company that was growing like crazy. They had a 401k but had never worked with an advisor. I walked them through the 5 step process I now call the Ultimate 401k Advantage.

After putting everything into place we got to step 4, Benchmarking their plan. I learned that they had never benchmarked their plan since it was started.

After we conducted the benchmark to see what comparable vendors would charge, we found they were paying $30,000 more than the average comparable vender. We used this information to negotiate a $30,000 saving with the current vendor for the participants.

After three more years of growth, we decided to benchmark again, and this time we saved an additional $20,000 a year.

You know, the DOL recommends that you benchmark your plan on a regular basis. By us doing this every three years, we were able to find some considerable savings for this client and their participants.

That’s now over $50,000 a year that these participants get to keep in their retirement plans. That means they will have more money at retirement.

When you benchmark your plan, there are two major benefits. Number one is that you could be saving money for your participants and number two, you could be saving and protecting your company from any fiduciary issues.

This allows you not only to become a 401k superhero to your employees, you also become a 401k superhero to your company.

Want to learn more about the Ultimate 401k Advantage 5 Step Process, including the process we use to benchmark plans? Then if you haven’t done so already, download a free copy of my book today.