401(k) investment consulting involves providing expert advice and guidance to individuals and employers on the investment options available within a 401(k) retirement plan. A 401(k) is a tax-advantaged retirement savings plan offered by employers to their employees, allowing them to contribute a portion of their salary on a pre-tax or post-tax basis. Consulting services focus on helping participants make informed investment decisions within their 401(k) plan to maximize their retirement savings.
Here are some of the key aspects of 401(k) investment consulting:
NFC provides education and guidance to 401(k) plan participants, helping them understand the investment options available within the plan, the risks and potential returns associated with different investment options, and the importance of diversification. We’ll offer materials, workshops, and personalized advice to empower participants to make informed investment decisions.
Asset allocation refers to the distribution of investments across different asset classes, such as stocks, bonds, and cash equivalents. NFC will help participants determine an appropriate asset allocation strategy based on their risk tolerance, time horizon, and retirement goals. They provide guidance on selecting the right mix of investments to optimize returns while managing risk.
401(k) plans offer a range of investment options, such as mutual funds, target-date funds, index funds, and company stock. NFC will evaluate the available investment options within the plan, considering factors such as performance history, fees, fund managers, and risk profiles. We help participants understand the characteristics of each option and select investments that align with their investment objectives.
An IPS is a document that outlines the investment guidelines and objectives of a retirement plan. NFC will assist employers in developing and maintaining an IPS for the 401(k) plan, which serves as a roadmap for investment decision-making. The IPS is critical to the long-term success of a retirement plan, it defines the plan's investment goals, risk tolerance, asset allocation strategy, and criteria for selecting and monitoring investment options.
NFC regularly monitors the performance of the investment options available within the 401(k) plan. We’ll analyze investment returns, compare them against benchmarks, and identify underperforming options. We’ll provide recommendations for potential changes or replacements of investment options to ensure participants have access to a diversified and well-performing investment lineup.
NFC will help participants assess their readiness for retirement by analyzing their savings, investment performance, and projected income needs. We use various retirement planning tools and calculators to estimate future retirement income and identify any potential shortfalls. We’ll also offer personalized recommendations to help participants adjust their savings and investment strategies to achieve their retirement goals.
401(k) plans are subject to regulatory compliance requirements, such as those outlined by the Employee Retirement Income Security Act (ERISA). NFC will assist employers in ensuring the plan's investment options and processes comply with applicable regulations. They help with fiduciary responsibilities, disclosure requirements, and adherence to prudent investment practices.
401(k) investment consulting is aimed at assisting employers in maintaining a compliant and well-structured 401(k) plan that serves the best interests of all plan participants. We also empower participants to make informed investment decisions within their retirement plan. By providing education, personalized guidance, investment option evaluation, and ongoing performance monitoring, NFC will help participants optimize their investment strategies and work towards achieving their retirement goals.
The NFC team is ready to serve you and your organization. If you would like to speak to a consultant or learn more about our service please Schedule a Consultation below: