Commentary: At the beginning of 2015, nearly 90 million Americans were covered under a defined contribution plan and investments in DC plans totaled $6.5 trillion dollars. According to Vanguard’s annual report “How America Saves 2015,” the median participant account balance on their recordkeeping platform increased 137% between 2004 and 2009. The growth in these accounts, along with the lack of investment experience and financial knowledge of many participants, makes these potential investment dollars a hot commodity for financial advisers.
There are a variety of “financial advisers” in the marketplace, with myriad titles, credentials and offers of how they can help your employees retire successfully. Many of these individuals are from reputable firms with good intentions, but others may try and take advantage of employees using complimentary dinners and “no obligation” seminars as a way to incent employees to purchase products that may not be in their best interest. It is important that employees make an informed decision prior to engaging the services of any adviser.
