401K Plan Advisors
Southern Capital Services, Inc. is a trusted 401(k) Plan Adviser to employers, plan sponsors and other fiduciaries who value independent and unbiased advice on improving their retirement plans.
We give many educational talks on investing and one of the concepts we discuss is the 3 legs of the retirement stool:
- Social Security
- Personal Savings
- Corporate Retirement Plan
We all know how shaky the first leg of the stool is, and the United States has one of the lowest rates of personal savings in the industrialized world. This puts all the pressure on the corporate retirement plan, yet there are many problems with this. First, about 30% of eligible participants don't even participate in their plans. Second, those who do are often inappropriately positioned for the amount of risk they are willing to take on. Many are confused by the number of choices offered and don't know where to turn for guidance. Third, and worst of all, the average participant balances in such plans are woefully inadequate to retire on.
Happily, some changes in the law are coming this year that require more transparent fee disclosure by plan providers. The theory is that once companies know what they are really paying, they will search for more cost effective alternatives. We believe that fee-only advisors represent the best alternative, not only because of cost, but because we act as fiduciaries on the plan and can give advice to plan participants. For a business owner, this means that we can share that legal liability.