Fees: Unnecessarily high fees can substantially erode investment performance over time, leaving many prospective retirees with only a fraction of the balance they need for retirement and opening plan sponsors up to personal liability.
How Fees Erode Performance
Over 30 years, higher fees can eat away half of your return1.
FIDUCIARY: Plan fiduciaries include anyone who uses discretion in administering or managing the plan and/or its assets. We put our own skin in the game and limit the liability of plan sponsors by signing on as either a 3(21) or 3(38) fiduciary. Below is an overview of the key differences between a non-fiduciary broker or salesperson versus our 3(21) and 3(38) service models:
RETIREMENT READINESS: We evaluate avenues of improving retirement outcomes at both the participant and the plan level. While effective plan design and investment selection build a strong foundation, individual participant education and customized allocation strategies help ensure participants make consistent progress toward their own unique retirement goals.
Our Approach Focuses on the “Employee Lifecycles”:
The Value of Personalized Managed Accounts:
- 70% who received advice doubled their average savings rate (from 5% to 10%) and increased their asset diversification level (from 3.7 to 8 or more asset classes)2
- 92% who received advice stayed the course through the volatile markets of 2008-20092
- The median annual return for employees receiving advice was 2.92% higher on average each year3
- Employees who got help with their retirement plan did better 87% of the time3
- A typical 45-year-old employee in an advice program was projected to have 70% more savings at retirement4
2 The New Rules of Engagement for 401(k) Success,Charles Schwab, June 2010.
3 Help in Defined Contribution Plans: Is it working and for whom? Financial Engines, January 2010. Report assesses the impact of professional investment help, including target-date funds, managed accounts and online advice, during the three-year period between January 1, 2006, and December 30, 2008. It includes analysis of eight large 401(k) plans representing more than 425,000 individual participants with $25 billion in plan assets. All returns reported in this research are net of fees, including fund-specific management and expense fees, and managed account fees where applicable.
4 Help in defined contribution plans:Financial Engines/AON Hewitt Study, 2006 through 2010 (September 2011).Report expands upon January 2010 report referenced in prior citation and assesses the impact of professional investment help, including target-date funds, managed accounts and online advice, during the five-year period between January 1, 2006, and December 30, 2010. All returns reported in this research are net of fees, including fund-specific management and expense fees, and managed-account fees where applicable. Findings cited in studies do not represent a guarantee of future results. More recent data may alter this assessment.
- Fee Transparency & Analysis
- Fee Benchmarking
- Fund Lind Up Comparison
- Vendor Selection
- Industry Reports
- Retirement Outcomes Evaluator
- ERISA Help Desk
- Fiduciary Investment Monitoring
- Fiduciary Vault
- Investment Due Diligence
- Investment Policy Statement Review
- Investment Committee Charter
- Compliance Calendar
- On Staff Attorney Experienced in ERISA*
- Optimal Plan Design Assistance
- Benchmarking Analysis
- Quarterly Plan Sponsor Newsletter
- Plan Health Check
- Personalized Investment Management
- Assistance with Distribution Options
- Enrollment & Education Meetings
- Quarterly Participant Newsletter
John co-founded OnTrack 401(k) in 2009 to provide plan sponsors with a transparent, cost-effective, and compliance-driven approach to retirement plans. Frustrated by the lack of clarity in the industry, particularly regarding fees, John’s focus is on helping plan sponsors better understand the true costs of their plan and how those costs measure up to the level of service they are receiving. He believes that every plan, whether it has two participants or 2,000, deserves to be served by an investment fiduciary. OnTrack works side by side with plan sponsors large and small as we benchmark fees, track compliance obligations, and develop strategies to help improve retirement outcomes for all participants.
Doug co-founded OnTrack 401(k) in 2009. As a former public school teacher, he saw an opportunity to improve retirement outcomes by educating and empowering both plan sponsors and plan participants. Doug is keenly focused on ensuring that plan sponsors receive quality service and that they fully understand the various levers they can pull to accomplish their objectives, whether through plan design, fee structure, or investment selection. On a participant level, Doug’s focus is on coaching participants to understand and engage with their retirement plan and to better understand the role it plays in their long term goals. Doug holds the Accredited Investment Fiduciary (AIF) designation.
Anne joined OnTrack 401(k) in 2015. She graduated from Georgetown with a degree in economics and has long maintained a passion for health, wellness, and goal-setting. The retirement industry has proven to be an ideal field for combining those interests, particularly as the links between financial and physical wellness become increasingly apparent. On a day-to-day basis Anne works with the team to ensure streamlined, efficient operations so that our full focus is on the ongoing compliance, management, and success of your retirement plan.
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- Meeting Your Fiduciary Responsibilities*