Retirement plans like 401(k)s and 403(b)s are increasingly essential for small businesses and organizations.
- Individual employees save toward their retirement with tax-deductible contributions to plans.
- For employers, the plans help recruit and retain great people – and employer contributions are tax-deductible, as well.
But the small business 401(k) landscape is notorious for high-cost plans rife with conflicts of interest. Far too often, plans are overly complex for sponsors and unhelpful for participants.i In fact, the typical household participating in a 401(k) plan loses 30% of its savings to high fees.ii At the same time, burdensome administration and opaque fee structures end up distracting small firms and non-profits from their core missions.
Park Piedmont’s goal is to change that experience for plan sponsors and participants alike. How?
- First, we’re a fiduciary. That means our clients’ interest always comes first.
- Second, we offer personalized participant guidance and ongoing participant education. When plan sponsors or plan participants have a question, we’re available to help.
- Third, we partner with Vanguard, one of the world’s largest investment companies offering low-cost investment choices, on plan design and administration. We assemble plan investment menus using a diverse selection of Vanguard’s low-cost index mutual funds. This usually allows us to significantly reduce plan costs with a transparent fee structure.
At Park Piedmont, we are committed to reducing costs and directly guiding plan sponsors and participants – in short, doing our part to transform the way retirement planning works for small businesses and their employees.
Park Piedmont Advisors, LLC is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
[i] See, e.g., http://www.pbs.org/wgbh/frontline/article/are-401k-fees-making-companies-richer-at-the-expense-of-workers/ [ii] http://www.demos.org/press-release/new-report-hidden-excessive-401k-fees-cost-retirees-155000.