Offer your employees better retirement plan investments and outcomes
Employer sponsored 401k and 403b retirement plans are the major vehicle for individual retirement readiness in the United States. In an era of defined contribution plans that place the onus on employees to save for retirement, employees and officers need intelligent solutions. To successfully achieve retirement goals, employees and officers need access to plans that combine the best available investment options to achieve long-term compounding of their investment assets.
Many 401k, profit sharing, and deferred compensation plan options widely available today are suboptimal. This can happen because many plan providers offer highly limited investment options. In other cases, they may offer more options but provide little in terms of guidance to plan participants. In our experience, most options widely available today:
- Offer only a limited number of investment options in the plan
- Utilize “closed architecture” plan platforms that feature an artificially limited selection of funds
- Have limited or no availability of one-on-one advice related to plan options
- Have high or opaque costs that lack transparency
- Offer substandard education to participants
- Lack selection of an independent fiduciary advisor like Ridgewood to select plan investments
As extensively discussed in works such as PBS Frontline’s excellent 2006 documentary Can You Afford to Retire?, the current state of affairs has much room for improvement. There are multiple causes for these issues and Ridgewood Investments has devoted itself to advising our plan sponsors to take a number of steps to significantly improve their retirement plans.
Our plans are designed with a primary objective in mind – improving the long-term best interest and outcomes of our client’s employees. Ridgewood Investments offers plan sponsors customized plans that consist of high-quality, low-cost investment options. We emphasize those investment offerings that are managed consistent with intelligent investing principles. We also provide effective educational seminars for participants and general as well as one-on-one advice to plan participants.
Ridgewood Investments offers our clients extremely attractive, often lower cost options for plan sponsors wishing to establish new plans or upgrade the quality of their existing plans. In most cases working with Ridgewood Investments, the plan sponsor can significantly improve their plans and their participant’s outcomes while simultaneously outsourcing the responsibility for the selection of plan investments to a professional third-party advisor like Ridgewood.
How we do this:
- A variety of the highest quality yet low-cost funds available
- Low cost index and/or ETF options
- Professionally managed model portfolios for do-it-for-me participants
- Outstanding education to equip participants to make better long-term choices and take action to save
- Access to individualized advice to plan participants to help them maximize their own benefits from participation
- Self-directed discount brokerage option (if desired)