Tip: Regarding retirement plans, look at the picture of a low cost plan before you try to set up a new plan or attempt to improve your existing plan. That way you will save precious time because you will know, firsthand, what a successful plan really looks like. The problem with meeting with experts first is they all have inherent conflicts of interest!
Did you know that most employers and employees make a common mistake by looking at the pieces to a puzzle, first? For instance, most plan sponsors (employers) and participants (employee) attend meetings, read books and articles, and ask associates, relatives, Gingher shears and friends for advice on investing. And that is in addition to them listening to just about every expert who has something to say on the topic of retirement plans.
My point is this: It never occurs to most people to simply look at a picture of a successful plan and duplicate it. The result of looking at the pieces to a puzzle first is this: On the surface, every IRA account and every 401(k) and 403(b) plan will look the same to you.
If you, too, think that every plan is the same or that any plan will do, it would be a mistake that will waste more of your time and money than you can imagine.
How about you? Are you getting the pieces to the puzzle regarding how to set up, manage, and monitor a plan?
Do you want to know what a successful IRA, 401(k) or 403(b) retirement plan really looks like? Here are a few guidelines. Picture these guidelines in your mind and use them to cut your plan's cost by up to 90%.
A truly low cost plan has the following:
1. a core mix of index funds that cost not more than 0.07 to 0.25% per year.
2. low cost self-directed accounts for employees who do not want to invest in managed funds and packaged products such as asset-allocation, target-date, lifecycle, lifestyle, and balanced funds funds.
3. The plan's overall cost will be low and have no hidden or camouflaged fees and expenses.
NOTE: If you have a 401(k) or 403(b) retirement plan, its recordkeeping and administration should cost not more than $30.00, per year, per eligible employee.
Will you consider the possibility that your plan costs more than it should?
I hope so, because Congress proved that most retirement plans cost more than they should. Therefore, it is likely that your plan does, too! Right?
Also, please consider the possibility that you can improve your plan fast even if you are new to investing in a IRA account, 401(k) plan, or 403(b) plan. By the way, no prior experience with investing mutual funds or index funds or setting retirement plan is required if you simply duplicate a truly low cost plan. Easy!
The guidelines above can be used by any employer or employee to cut their plan's cost by up to 90%. Easy!
Summary: First, study the picture of a successful retirement plan. Next, duplicate it, which means no tweaking it. That way you, too, can have more money, more time, and less stress.
Best wishes,
Frank R. Cirullo
Want more free tips on picking winning mutual funds fast? setting up a plan? saving time? Easy! http://www.frankcirullo.com/blog
Want to see a picture of a successful 401(k) plan? Free Look Inside this book: Cut Your 401(k) Plan Expenses And Keep More Of YOUR Money at http://www.amazon.com/Your-Plan-Expenses-Keep-Money/dp/1439236291/ref=sr_1_1?ie=UTF8&s=books&qid=1262025725&sr=8-1#reader_1439236291
Frank R. Cirullo is a registered investment adviser and twenty-five year financial veteran. He teaches students how to have more money, more time, and less stress--free. Frank is the founder of First Capital Management in San Diego, California and 401(k) Plan School which is online.
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