Investment Education and Guidance
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 Strategies
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.
Investment Option Evaluation
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.
Investment Policy Statement (IPS)
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.
Plan Performance Monitoring
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.
Retirement Readiness Assessments
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.
Regulatory Compliance
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.