Your dentist has it figured out. You don’t leave their office without setting your next appointment.  Then they call to remind you when your appointment is approaching.

You dutifully show up and face what most polls show is the second biggest fear people have, right behind public speaking.

The financial services industry could learn a lot from your dentist. Reviewing your retirement plan annually may not be your second biggest fear, but it’s probably not on your list of top 10 things to do either. I thought I would try to provide some incentive.

The right plan type can maximize your personal deferral amount and minimize, if you desire, the employer obligation.

You think you have the right plan type. Maybe you do, but I have many clients today because they didn’t understand the benefits of safe harbor, Roth deferrals, employer match, 401(k) versus Simple IRA versus a Profit Sharing plan and so on. Maybe now is a good time to review what you would really like your plan to do for you, and your company, and identify the aspects of the plan you would like to change.

The word for today is fees

Some things today really are less expensive. For example: computers, life insurance, and most retirement plan products. Fee disclosure legislation relative to retirement plans is coming soon.  That’s a good thing, and it will more than likely prompt many of you to start searching for comparable quote. If, despite the market, your plan has grown substantially since you started with your current vendor, you could qualify for a large decrease in fees for your pension investment product and administration. But you won’t know if you don’t get another quote. Even if you end up staying with your current vendor, it’s a great tool to negotiate a lower fee.

Investment selection for the masses

Some of the largest plans we review offer what we feel are the poorest selection of investments. It’s not just about offering different investments to your participants, it’s about offering historically solid performers with proven money managers. Morningstar® ratings are available on many investments today and offer a great way to help analyze if the investments you use are competitive. Every day I see plans that offer investments that are rated below average in their plan and it boggles my mind.

This is a brave new world with very volatile markets. Why not offer your participants the tools designed to help deal with it?

Web access

This, of course, is a must in the 401(k) world today. You want to have investment information, investor tools, market information and more. at your fingertips 24 hours a day. You may also want your participants to have the ability to change their investments anytime, day or night, at their computer. All of these participant benefits are advantageous to the plan administrator as well. There is no such thing as providing too much access to information or convenience.

So do yourself a favor, review your plan. Talk about what you would like to see in your perfect scenario. Then get a competitive quote and see what else is out there. I promise, it will be more fun than a trip to your dentist, even if you love your dentist.

		Timothy J. Holsworth CFP®, CLU, ChFC is president of AHP Financial Services, a wholly owned subsidiary of Andrews Hooper Pavlik PLC.  He also is a branch manager with Raymond James Financial Services, located at 1601 Marquette St., Suite 4, Bay City, MI. Phone number is 989-671-2600.  AHP Financial Services and Andrews Hooper Pavlik PLC are not affiliated with Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.                                      ---   The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Tim Holsworth and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The foregoing is not a recommendation to buy or sell any individual security or any combination of securities.