Some perspective on providers

By definition all mutual fund companies are investment management companies. But is an investment company that opens a new fund for every currently popular asset class, a gold fund for example, really providing investor opportunity or are they just creating a new sales idea for brokerage representatives? Are they an investment management company or more of a financial products marketing company?

Contrast this investment company with one that sticks to its investment management strengths where the managers actually invest their own money alongside the retirement investments of your employees.

This seems like a fine line but it is a very important distinction. If you think about this, many of the most successful investment managers, as measured by investment results, never advertise on television – they don’t need to. Successful investor outcomes often attract more investor dollars than the manager can handle. This is why many mutual funds are closed to new investors.

A similar distinction applies to those that hold themselves out as retirement plan specialists. There are those that sell retirement plan products but have little specialized knowledge about actual retirement plan requirements and those that are truly specialists in retirement plans. Saying that you are a specialist doesn’t make you one.

The larger plan services vendors often assume when they take on a new client that the client has already made decisions regarding things like plan design. It is assumed the employer knows a lot more about retirement plans than they actually do know. These providers are reactive – meaning you have to ask a question, probably a question you don’t know to ask, rather than being proactive – articulating your options and helping you arrive at an answer. What if you, as the employer, don’t know what to ask? Employers genarally are not experts in retirement plans. That is why they hire advisors. What if that advisor doesn’t know what to ask either?

We specialize in delivering a plan experience designed to provide the delivery of necessary services and support combined with a high level of efficiency relating to costs and plan maintenance. These efficiencies enhance rather than reduce the quality of services to the employer and retirement income opportunities for participants.

Contact information:
Kurt Millikin – CEO
(206) 267-2315

Subject Reference Information