Case Study:
Law Firm
CLIENT PROFILE:
Industry Type: Professional Law Firm
Geography: Harrisburg
Number of Employees: 50
Plan Type: 401(k) Profit Sharing Plan
The Challenge
The Recommended Solution
New providers should be recommended to combine a national recordkeeper with a local third party administrator, which would save the firm in plan administrative expenses.
An enhanced investment lineup would lower the investment expenses for participants, and a plan expense account could use revenue collected in the plan to pay for advisory and administrator plan expenses. Our other recommendations included:
- Reposition self-directed brokerage accounts to strategically improve key stakeholder usage while lowering plan investment expenses and eliminate the need for new accounts.
- Create an investment policy statement along with quarterly monitoring reports.
- Minimize fiduciary liability for plan trustees by implementing processes along with plan benchmarking every three years.
- Meet with plan participants to help them feel comfortable during the plan transition and improve diversification of their accounts.
Expected Results
- Plan expenses were lowered.
- The Investment Committee’s fiduciary liability was reduced through documented processes.
- An experienced investment advisor and institution as a 3(21) co-fiduciary to the plan were added.
- The brokerage account plan feature was formalized to minimize investment risk exposure.
*Disclaimer: Each individual firm’s situation is unique. The case study illustrated is for educational purposes.
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