401(k) Case Studies
A mid-sized law firm needed their 401(k) Plan to reflect their firm’s values.
Their old 401(k) was a relic of the past – complicated, expensive, and generally unattractive to their highly educated team. EVOadvisers worked with the law firm to implement a simple, low-cost, and appealing benefit – while making the process of changing to a new plan provider quick and easy for the busy attorneys and staff. Here’s a snapshot of what changed.
Disclosure: This testimonial was given by a current client. No cash or non-cash compensation was provided for the testimonial. We are not aware of any material conflicts of interest on the part of clients giving a testimonial resulting from their relationship with EVOadvisers.
Simplified the plan.
An insurance company acted as record keeper and fund provider.
- 86 fund choices — only 27 were used by any participants.
- 70% of funds were proprietary funds only available through the insurance company.
EVOadvisers provides a main point of contact, coordinating an experienced record keeping and third party administration team at Employee Fiduciary.
- Diversified, low cost investment options with pre-built EVOadvisers allocation models.
- All mutual funds with tickers — so employees can do all the research they want. No opaque insurance “separate accounts.”
Maintenance — Simple process to let employer know key dates and timelines to be in compliance with regulations.
Amplified the experience.
Service — Insurance company provided few services used by participants.
- Experienced support team to help answer plan sponsor questions.
- Provide proactive support and at-a-glance reference tools to meet plan deadlines and ERISA reporting requirements.
- Participant advice days, giving employees the opportunity to meet with a CFP® professional to discuss their 401(k).
- Customized videos and resources pertaining to their 401(k) to help onboard new employees.
- Ongoing advice on optimal plan design to meet employer’s evolving needs.
- Monitor investment positions and update models annually.
- Offer transparency to participants through use of low-cost, publicly-traded mutual funds.
Quantified (and lowered) the costs.
Total annual cost: $75,239
- Administration costs: $45,764
- Investment expense: $29,475
Reduced plan costs by more than 66%
Total annual cost: $25,545*
- Administration costs: $20,891 (tax deductible business expense)
- Investment expense: $4,654 (average fund expense ratio: 0.08%)
*Costs are from the time the plan moved to EVOadvisers management.