How to Evaluate a Plan Provider: Understanding Fees
Help clients understand the costs associated with their retirement plans, ensuring they choose the best provider for their business.
Key Points
- Types of Fees: Educate clients about plan administration fees, investment management fees, and consulting fees, highlighting the importance of monitoring these costs.
- Fee Structures: Explain asset-based and flat fee structures, helping clients understand how fees are calculated and charged.
- Bundled vs. Unbundled Services: Discuss the differences between bundled and unbundled plan providers, emphasizing the trade-offs between cost, customization, and service options.
How to Evaluate a Plan Provider: Understanding Fees
It can be challenging to navigate retirement plan costs, especially if you haven’t sponsored a plan before. But as a plan sponsor, understanding fees is an extremely important part of your fiduciary duties. In part 2 of our series, we walk through the various types of fees associated with retirement plans, giving you a solid framework to understand plan costs and to get the most value from your plan and provider.