New Mexico Retirement Plans

One of the many problems with the retirement plan marketplace for small business owners and their participants in New Mexico is the advisor they have used to meet the needs of their participants.  Many of the 401k plans setup for them were done with the best intentions but have not been reviewed in years and could pose a risk to the business owner and plan administrator. 

Many small business owners do not know that by signing off on the plan makes them a fiduciary and liable to the participants in the plan and their beneficiaries.  What this means is that as plan sponsors they MUST always put the interests of the participants and their beneficiaries above their own and especially above the interests of the advisor that helped them put the plan in place.  Many times these plans have not been reviewed since their inception and are carrying much higher internal costs and fee-heavy mutual funds throughout. 

In today’s marketplace much of the talk is with fees on individual accounts but many times the focus should be on what you are paying inside of your workplace retirement plan.  While your 401(k) through your employer will likely be the largest investment account you have going into retirement, just imagine the size of account you could have if your employer lowered the fees you are paying.   Reducing the fees on your workplace retirement plan by 1.5% can increase the amount of money participants have in retirement by more than 30% over a 30-year investment period.  That’s something worth checking into.