Discretionary Trustee Investment Advice

What Employers and Plan Trustees Need

Most employers and plan trustees are focused on running their business and don't have the free time, spare resources, or technical expertise necessary to make plan level investment decisions.

Straight Forward and Direct Service

With our experience and expertise serving 401(k) plans as a discretionary investment advisor and plan fiduciary under ERISA §3(38), Cygnet can and will accept the fiduciary responsibility and liability for making decisions regarding your plan's investments. No gimmicks. No misdirection. No misleading fine print.

This means that Cygnet will do the following:

  • Decide which investment options to include in the plan.
  • Build asset allocation portfolios to include as an investment option within the plan.
  • Conduct on-going due diligence and replace investment options as warranted.
  • Monitor, rebalance, and reallocate model portofolios.
  • Address other fiduciary compliance and governance issues.

Affirmative Fiduciary Indemnification

An indication of the full scope of the protection we provide plan trustees can be found in this excerpt from our indemnification clause.

...Furthermore, Cygnet indemnifies the Plan Administrators and the Trustees against claims incurred that are a result of fiduciary breach(s) and liability under ERISA §404(a) that would not have been incurred but for engaging Cygnet to provide advice, recommendations, and services pursuant to the terms of this agreement.

True Commitment

Cygnet's level of fiduciary commitment is in sharp contrast to the vast majority of the financial industry who, acting under the Suitability Standard of Care, cannot serve as a plan fiduciary and merely provide investment education, general guidance, and suggestions.

Under this lesser standard of care, employers and plan trustees still retain all the responsibility and liability for making decisions regarding their company's 401(k) plan and investments. What's unfortunate is that in most cases employers and plan trustees erroneously believe they have delegated that liability to the broker, consultant, or agent servicing their plan.

Contact Us

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

Now that you know our story, tell us yours. We're always open to receiving questions, feedback, and suggestions. Please use one of the resources below to contact us.

© 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.