There was a new 401(k) plan sponsor on which providers are associated with being a \u201cgood value for the money\u201d.<\/p>\n
Providers Most Associated with \u201cGood Value for the Money\u201d<\/strong><\/p>\n <\/strong>Among all plan sponsors<\/p>\n 1\u00a0\u00a0 Empower Retirement<\/p>\n 2\u00a0\u00a0 Ascensus<\/p>\n 3\u00a0\u00a0 Fidelity Investments<\/p>\n 4\u00a0\u00a0 Betterment<\/p>\n 5\u00a0\u00a0 OneAmerica<\/p>\n 6\u00a0\u00a0 Vanguard<\/p>\n 7\u00a0\u00a0 Paychex<\/p>\n 8\u00a0\u00a0 American Funds<\/p>\n 9\u00a0\u00a0 ADP Retirement Services<\/p>\n 10 Wells Fargo<\/p>\n Source: Market Strategies International: Cogent Reports\u2122, Retirement Planscape: May 2016<\/p>\n I think most of these providers are actually good, but did you see what I see? The two biggest payroll providers made the list. What does that tell you? Plan sponsors may know about paying low fees, but they might not really understand good value. These payroll providers charge a reasonable fee, but their lack of attention to compliance testing details doesn\u2019t make them a good value when errors are discovered and have to be corrected.<\/p>\n Surveys are a nice thing, but when it comes to judging whether a 401(k) provider is any good, most of the time it\u2019s the plan sponsor that has so little information in order to make an informed decision. \u00a0Would you want an opinion from the one entity that knows the least about 401(k) plans? It’s like asking a vegan for their opinion on the best steakhouse.<\/p>\n So I think surveys like this are kind of meaningless because you can write a book on what plan sponsors don\u2019t know about their plan providers.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" There was a new 401(k) plan sponsor on which providers are associated with being a \u201cgood value for the money\u201d. Providers Most Associated with \u201cGood Value for the Money\u201d Among all plan sponsors 1\u00a0\u00a0 Empower Retirement 2\u00a0\u00a0 Ascensus 3\u00a0\u00a0 Fidelity … Continue reading