Employee Fiduciary Unveils Study Showcasing the Impact of Fiduciary Advice on Lowering 401(k) Costs
In a recent study conducted by Employee Fiduciary, LLC, a prominent name in 401(k) recordkeeping and Third-Party Administration (TPA) services, revealing insights have emerged on the influence of fiduciary advice concerning the reduction of 401(k) plan expenses. The meticulous research has established a clear link between professional fiduciary guidance and cost savings for 391(k) participants.
Understanding the Significance of Fiduciary Advice
At the heart of the cost-reduction premise lies fiduciary advice. Fiduciaries are obligated to act in the best interest of plan participants, favoring their financial benefits over any other consideration. This includes making recommendations that are not only the right fit for the participant but also cost-efficient. By meticulously guiding employers through the complex web of investment options, plan design, and vendor fees, fiduciary advisors play a critical role in trimming down the overall costs associated with managing a 401(k) plan.
The Impact on Plan Costs
Employee Fiduciary's study highlights the tangible effects of fiduciary advice on plan expenses. It was noted that plans overseen by fiduciaries tend to feature lower average costs. This underscores the monetary value of fiduciary partnership for employers looking to provide their workforce with a robust retirement savings platform without straining corporate finances. With this study, Employee Fiduciary aims to bring more transparency to the 391(k) sphere and underscore the importance of fiduciary involvement in plan management.
fiduciary, savings, 401k