The Right Way to Evaluate 401(k) Advisor Costs
Welcome to 401(k)ompass, a series of two-minute videos to help you manage your 401(k) more effectively by addressing current issues and challenges.
Many plan sponsors overlook a critical detail: how their advisor is paid and what services that compensation covers. In this quick breakdown, Renn Williams walks through what to look for and why it matters.
He breaks down the 408(b)(2) fee disclosure, which outlines advisor responsibilities and pay structures. He also introduces the concept of a “break point” schedule—an increasingly common approach that reduces advisor fees as plan assets grow.
Whether you’re evaluating advisor value or wondering if your current arrangement is competitive, this quick video offers a clear framework to help you assess success and ask the right questions.
Watch the full 2-minute episode to learn how disclosure details and performance metrics can help you make more informed decisions about advisor compensation.
