Fee-Only Investment Advice for Participants

What 401(k) Participants Want

A 2012 study conducted for Schwab revealed that 83% of 401(k) plan participants want professional Investment Management and Advice to help them manage their accounts. However, only 16% of plan sponsors intend to promote professional advice and make this service available to their employees.[1]

Why This Matters

In September 2011 AonHewitt, published the results of a study which documented that participants who take advantage of formal "investment help" offered by their 401(k) plan realize a 2.92% annual boost in the annual rate of return on their 401(k) accounts.[2]

The Cygnet Advantage

Cygnet’s years of experience providing investment advice while serving as a fiduciary for our individual “private” clients and 401(k) plans make us uniquely suited to meet the needs to 401(k) plan participants. And, our ability to formally contract with the plan to serve as ERISA fiduciary means that Cygnet can assume the liability associated with the advice provided to plan participants rather than letting it pass through and attach to the employer or plan trustees

This is in contrast to the vast majority of the financial industry which operates under the Suitability Standard of Care and cannot serve as a fiduciary and accept the liability for the advice they provide.

401(k) Participant Services

While traditional group enrollment meetings are available, we find that the most effective way in which to provide 401(k) plan participants with the specific investment advice needed to make good decisions and improve their likelihood of successful outcomes is through

  • one-on-one enrollment meetings
  • one-on-one advice during pre-scheduled quarterly worksite service visits
  • telephone consultations
  • oversight and management of asset allocation model portfolio


[1] Koski Research, survey conducted for Charles Schwab, 2011

 

Contact Us

Headquarters:
4139 W Walton Blvd.
Suite D
Waterford, MI 48329
Phone: (248) 673-2900
Fax: (248) 673-5312

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© Copyright 2017 Cygnet Financial Freedom House Consulting, Inc. All Rights Reserved.

Cygnet Financial Freedom House is an independent Registered Investment Advisor (RIA) with the States of Michigan and Pennsylvania. Cygnet utilizes TD Ameritrade as an independent and unaffiliated custodian for client accounts. Securities offered through Triad Advisors, Inc., Member FINRA/SIPC.