Why Diversification Analysis is a Must for Your Company’s Employee Retirement Plan
Employee retirement plans offered by external service providers are complicated. Because of this, It is often easy to overlook a variety of small details that could hinder the return on the investment of your plan participants, subjecting them to unnecessary risk.
As a fiduciary, you must ensure the assets of your employee retirement plan are diversified, maximizing returns and protecting participants from unnecessary risk. That is why you must conduct a diversification analysis and consult a Certified Plan Fiduciary Advisor during your efforts.
During the process of Diversification Analysis, your Certified Plan Fiduciary Advisor will review the investment allocation menu offered on your plan and ensure that it is sufficiently diversified. No highly correlated fund pair can exist from the available list. The last thing you want is one of your mutual fund allocations to be identical to another. You could be losing out on immense growth in the plan by not being allocated to different mutual funds that react more positively to market changes. You could also subject plan participants to unnecessary risk when underperforming mutual funds get duplicated on your plan. This problem is far more common than you might think.
If you are a fiduciary for your company’s employee retirement plan and are concerned about whether the plan investment allocations are sufficiently diversified, I can help. I specialize in reviewing employee retirement plans, ensuring they are thoroughly diversified, and adding 99% value to employee retirement plans. Contact me today if you’re ready to get the most value from your company’s retirement plan and ensure the plan investment is sufficiently diversified.
If you are a fiduciary for your company’s employee retirement plan and are concerned about your current investment options, I can help. My specialty is reviewing and adding 99% value to employee retirement plans. Contact me today if you’re ready to get the most value from your company’s retirement plan and protect yourself from personal liability as a fiduciary.