The market is in turmoil with no end in sight, which no doubt is raising questions and anxiety among employees.
If you don´t send routine communications to your employees (clients) on the health of your (their) retirement plan, now is a good time to consider doing so. An example of a great communications piece is an e-mail sent this week by Reliance Trust Company, a custodian to some 15,000 401(k) plans.
"In a turbulent market, it´s good to periodically speak out on what´s going on and why you think it´s going on," says Tony Greene, Reliance´s senior vice president. "The communication today directly addressed people´s biggest concern - the Lehman failure - and the global concerns people may have about general market movement. We also [underscored] that these types of times are why in good times you do balance portfolio strategies."
While Greene acknowledges that plan sponsors´ communication philosophies differ, he sums up Reliance´s this way: "We think it´s better to tell people what´s going on, why you think it´s happening, and what the impact may be. It´s always good to communicate where you are and why decision made."