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 and received a NAPA Award as a Top 50 Advisor in the US under the age of 40.
Anne joined OnTrack 401(k) in 2015 after three years with a PLANADVISER Top 100 Retirement Plan Adviser. 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.
Bryan has been a leader in helping plan sponsors and their participants pursue their retirement goals since 1987. Prior to joining OnTrack 401(k), Bryan founded and managed a national third-party administration firm with over 750 retirement plans (and over 1000 employment benefit plans overall), as well as a 401(k) audit firm and a 401(k) advisory firm. Bryan earned his designations as a Qualified Plan Administrator (QPA) and Qualified Plan Financial Consultant (QPFC) from the American Society of Pension Professionals and Administrators (ASPPA), and Certified Plan Fiduciary Advisor (CPFA) designation from the National Association of Plan Advisors (NAPA). His breadth of knowledge and experience has served many plan sponsors around the country to confidently navigate the retirement-plan landscape by helping them design and select plans that work.
Bryan has achieved the distinguished Advanced Toastmaster Silver level through Toastmasters International; a certified Life Coach through the Life Mastery Institute; and Speaker, Teacher and Coach with the John Maxwell Team; each and all of these make him exceptionally well qualified to lead management teams through the boardroom decision process as well as connecting with diverse plan participants – from factory floor to executive team.
- Tibble to Get En Banc Appellate Court Review*
- Retiring Later Not a Reliable Retirement Strategy*
- 401(k) Nondiscrimination Tests Explained*
- SURVEY SAYS: Common Questions From Plan Participants*
- 9 things you need to know about 401(k) fees*
- Meeting Your Fiduciary Responsibilities**
** For Plan Sponsor Use Only – Not for Use with Participants or the General Public. This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
Frederick: 47 E. All Saints Street, Frederick, Maryland 21701
Arlington: 3100 Clarendon Blvd. #200, Arlington, Virginia 22201
Austin: 1300 Constant Springs Drive, Austin, Texas 78746
Main Phone: 855-401K 338