Plan Sponsors’ Short Term Focus on Funds

An MFS Defined Contribution Investment Trends Study found that nearly 6 in 10 retirement plan sponsors surveyed say they consider a track record of three years or less when selecting managers.

Is that really a surprise? Most people in life think short term and no one thinks shorter term than retirement plan sponsors. Retirement plan sponsors don’t have the time or the patience to think longer term when it comes to their retirement plan and the investment options offered under the Plan.  The study also suggested that plan sponsors fail to focus too much on performance and too little on allocation.

So it’s up to the financial advisors for the plan to help the plan sponsors identify the bigger picture.

The problem today in my mind is the many retirement plan sponsors out there that still don’t have a financial advisor or have an advisor that rarely meets and services the client.

Just another thing to think about if you’re a retirement plan financial advisor

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