For most people, their 401K (or 403B, TSP, etc.) is their single largest asset beyond their home. The unfortunate part is that very few people seek advice for managing this asset. Part of the problem in the past has been that due to Department of Labor rules, employers have been limited in their ability to recommend advice for their employees, and advisors have been limited in their ability to provide these services for the same reason.
Fortunately, late last year the Department of Labor finalized new regulations paving the way for better access to investment advice on employee retirement plans. There are still some strict rules governing the regulations, but by and large, all employees now have access to seek out advice on their plans. Access to advice on investment plan options can help plan participants improve their investment returns and better manage their overall portfolio risk.
As I mentioned above, advice for retirement plan assets must be given under strict guidelines. For example, the advice given must either be given based on pre-determined computer models, or provided on a “level-fee” basis, where compensation is not based on the types of investments recommended, but rather on a fee-only basis. In other words, advice cannot be given on a commission basis.
This is great news for Connecticut-based employees that seek advice for their 401(K) assets, a service we at Lansdowne Wealth Management provide.
Original Blogpost.
Robert C. Henderson is the President of Lansdowne Wealth Management in Mystic, CT. His firm specializes in financial planning and investment management for individuals approaching retirement or already in retirement, with an added focus on the particular needs of women that are divorced or widowed. He is an Accredited Asset Management Specialist and a Certified Divorce Financial Analyst. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog at http://lwmwealth.com/blog and the firm’s website at http://www.lwmwealth.com.
If you are an employee or retiree of General Dynamics, Pfizer, or L&M Hospital, and you would like advice and direction on managing your 401K plan, please sign up for our monthly newsletter, which provides complimentary ongoing advice, commentary, and model portfolios for each of those plans. You can sign up automatically at http://www.lwmwealth.com/services/your401k.html.
