Viewing entries in
Retirement Plans

Financial Education Not Enough for Employees

Financial Education Not Enough for Employees

It may no longer be enough for employers to simply provide employees with education about savings and retirement.  According to a recent Bankrate survey,  63% of Americans cannot manage a $500 financial emergency.1 A do-it-yourself approach to improving spending and saving behaviors assumes that employees have the skill and initiative to address their own financial condition. 

Six8 Advisors believes that many people could benefit from working with an advisor that helps them create a plan, monitor its progress, and serve as an ongoing financial resource.  This seems simple, but fee-based advice is often out of reach because the financial advisory community excludes potential clients by imposing large hourly rates or upfront planning fees.  The result is that the households that often need the most help are left to figure it out on their own. 

The Six8 Advice @ Work program provides a cost effective financial wellness and planning process for clients willing to engage with their financial future. Employers are in a unique position to provide access to advisors by taking an interest in their employees.   We often ask our employer clients, “Is your retirement plan successful?”.  Does your plan provide the ability for your employees to retire on their own financial terms?  For decades many employers saw their role as simply a plan sponsor when in fact they could have done more by offering their employees access to financial support.

Employees need to take action now.  With volatility in the financial markets increasing, and some economists projecting an average balanced portfolio return in the 4% - 5% range2, then employees are faced with more than just a retirement issue, they are faced with a lifestyle issue.  American households need to get a grip on spending and saving. Employers can play an important role in providing access to much needed financial advice as part of their employees retirement plans.

1 http://www.bankrate.com/finance/consumer-index/money-pulse-1215.aspx

2 Vanguard Research Paper “ Asset Allocation In A Low-Yield And Volatile Environment” September 2011

Your Employees’ Financial Health can impact your Bottom-line!

Your Employees’ Financial Health can impact your Bottom-line!

Did you know that financial education could help save up to $2,000 per employee annually through increased productivity, reduced health care costs, and better utilization of employee benefits; and research and analysis indicates a 3:1 return on employer investment in education? *

401(k) Rules Liberalized

401(k) Rules Liberalized

In the past, all employees covered by a single plan were required to be considered in the same group for purposes of 401(k) anti-discrimination testing. The rule change now permits employees to be classified in two or more groups for this purpose if certain conditions and nondiscrimination tests are met.

Attention Small Plans:  What does your Advisor charge?

Attention Small Plans:  What does your Advisor charge?

Conferences are a great place for us to meet with vendors and other advisors to gain insight, share best practices and identify trends.  Our goal is to gain knowledge that helps us help our clients.  I was recently reviewing the agenda for an upcoming conference and noticed a session titled, “Small Plans, Big Margins”.

Is your 401k Advisor a 401k Advisor?

Is your 401k Advisor a 401k Advisor?

Anyone with the appropriate securities license and contact with a 401k provider can “sell” a 401k plan, but that does not make them a 401k specialist. 

Don’t Forget the Point of your 401k... Retirement Readiness

Don’t Forget the Point of your 401k... Retirement Readiness

What is the point of your 401k plan?   No, this is not a trick question, just a reality check.  Often a 401k plan is one of those things a business must have to compete for employees, to fit in, to meet employee expectations.  Sometimes we forget that the real purpose of a 401k program is to provide a way for employees to retire someday. 

401(k) Plans - A Nice Fit for Small Business Owners

401(k) Plans - A Nice Fit for Small Business Owners

Qualified plans, such as a 401(k) plan, offer excellent benefits for small business owners. These plans can provide a multitude of tax advantages that combine to deliver far more tax leverage than most people may imagine.

5 Reasons you need a 401k Check-up

5 Reasons you need a 401k Check-up

We get it.  As a business owner, you work hard to grow your company and do not need another thing on your plate.  Yet, the reality is your 401k could become a liability instead of an asset if not properly managed. 

Is your 401k Advisor Old School?

Is your 401k Advisor Old School?

Instead of locked in their office evaluating funds or simply selling you a plan and walking away; the next generation 401k advisor helps you manage the plan, emphasizes retirement education and seeks retirement readiness for your employees. 

An Affordable way to Reduce your Liability

An Affordable way to Reduce your Liability

In 2015, we introduced a Multiple Employer 401k, powered by Pentegra, that bundles 3(38) and 3(16) services into the core package.  By joining forces with other plans, you can gain access to fiduciary outsourcing, institutional share classes and other “large” plan features at an affordable price point.

Congratulations, you are a 401k Fiduciary!

Congratulations, you are a 401k Fiduciary!

401k Plan Sponsors have a fiduciary duty to manage their 401k for the benefit of their employees.  Most employers want to do it right, yet in 2016 alone the Employee Benefits Security Administration closed 2,002 civil investigations resulting in 1,356 monetary outcomes totaling more than $777.5 million.*

There is Strength in Numbers

There is Strength in Numbers

Six8 created our Multiple Employer 401k, powered by Pentegra, to provide large plan benefits in a small -company package.

Is your 401k Advisor AWOL?

Is your 401k Advisor AWOL?

Your 401k plan advisor is a key service provider to your plan. A modern 401k specialist will not only help you manage the plan, but will take an active role in participant education and even one-on-one advice.

The Multiple Employer Plan “MEP” Advantage

The Multiple Employer Plan “MEP” Advantage

A well-designed 401(k) plan can help attract, retain and reward talented employees. Many small businesses have a strong desire to offer a 401(k) or other retirement plan but face considerable hurdles in terms of cost, expertise and dedicating the necessary time to properly run the plan. Multiple Employer Plans (“MEPs”)eliminate these hurdles.

Everybody needs a check-up

Everybody needs a check-up

We are proud to introduce a new service for 401k plan sponsors.  Our 401k check-up is a one-time consulting engagement designed to help you identify issues and opportunities within your 401k plan. 

 Is Your Company Overlooking These Common Fiduciary Duties?

Is Your Company Overlooking These Common Fiduciary Duties?

Most employers overlook many of the following duties of retirement plan fiduciaries. More often than not, these are examples that result from ignorance more so than willful disobedience, combined with a mistaken belief that third-party administrators (TPAs) are handling everything for them