Reconsider custom target-date funds. Custom target-date funds are tailored to a plan’s specific participant demographics rather than a standard target retirement date that a plan provider applies to all of its clients. These funds and other “default investments” are now cost-effectiveat much lower asset levels, owing largely to efficiencies gained from the growing number of plans employing automatic enrollment and automatic escalation of participant contribution levels, says Toni Brown, director of U.S. client consulting for Mercer’s investments business.
This one strategy will do more to improve the results of your plan than any other. By automatically putting plan participants in an age based professionally managed globally diversified portfolio results will dramatically improve over the long term.
Please comment or call to discuss how to make you compnay 401(k) plan a pension fund like plan.