Use Experts

Who are the experts and how do you find them?

The laws governing 401(k) plans require the fiduciary of the plan to act "with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use..." (US Department of Labor, Title 28, Chapter 18, Subchapter 1, Subtitle B, Part 4, § 1104. Fiduciary duties)

Although it is clear you need a fiduciary for your plan, the law is less clear about who is the fiduciary. At first glance, it seems the fiduciary can be whomever you name.

Not so. YOU are the fiduciary. You may decide to hire someone outside the organization to manage some or all of the plan’s day-to-day operations. But even if you do, you, as employer, continue to have fiduciary responsibility. And the responisbility is a big one.

There are over 5-million people in the US with legal financial fiduciary status. Only a small number are federally or state-registered Investment Advisors. If you decide to look for expert advice, you need to find the best person for the job—a registered advisor with Accredited Investment Fiduciary (AIF®) status. AIF® advisors have demonstrated competency in the area of fiduciary responsibility by successfully completing a program on investment fiduciary standards and passing a comprehensive performance examination.

At GoldMedalWaters 401(k), all of our advisors are state registered AIF® professionals.