JR Chappell - Totus Wealth Management

10 Common 401k Oversight Issues Every Plan Sponsor Should Consider (Part 5)

Fee Transparency

401k fees are rarely in one place; instead, they are spread across investment expense ratios, recordkeeping costs, & revenue sharing arrangements. Without a clear breakdown of total plan fees, it's difficult for plan sponsors to understand fully exactly what they are paying.

I'll work with you and get a full accounting of your current plan fees to make sure costs are not higher than they should be.







(CliftonLarsonAllen)

10 Common 401k Oversight Issues Every Plan Sponsor Should Consider (Part 4)

Fiduciary Process - ERISA does NOT require perfection; but It DOES require a prudent process.

This includes: regular plan reviews, fee awareness, documented decision-making, and ongoing monitoring. The process matters just as much as the outcome.

I work with businesses all over the country to help maintain their retirement plans to the appropriate standard and avoid potential audit problems. Let me work with you to maintain your company 401k to that same high standard.







(CliftonLarsonAllen)

10 Common 401k Oversight Issues Every Plan Sponsor Should Consider (Part 3)

"We Haven't Touched It" - A phrase I hear fairly often - "We haven't made any changes to the plan in years and are happy with how it is now."

From an audit perspective, that raises a few questions - is the plan regularly monitored? When was the last time plan fees were evaluated? When was the last time plan providers were reviewed?

Inactivity can be just as risky as poor decision-making. Just because it was 'good enough' at one point in the past, doesn't mean it's still good enough now. Let me help you make sure your plan meets current standards.







(CliftonLarsonAllen)

10 Common 401k Oversight Issues Every Plan Sponsor Should Consider (Part 2)

Benchmarking Blind Spots: Many 401k plans are reviewed periodically, but not benchmarked.

There's an important difference - a true benchmark evaluation compares: fees relative to plan size, investment lineup quality, & service provider competitiveness against other providers.

Without that, it's hard to demonstrate procedural prudence as the plan sponsor. Remember, the ERISA standard does require perfection - it requires prudent decisions.

Sound off in the comments about the last time you officially benchmarked your plan against other providers... if it's been awhile, I'm happy to work with you to ensure to ensure your plan is keeping pace with industry best practices & delivering maximum value to employees.







(CliftonLarsonAllen)

10 Common 401k Oversight Issues Every Plan Sponsor Should Consider (Part 1)

Documentation Gaps: One of the most common issues I see in 401k plans isn't poor performance, it's poor documentation. Investment decisions are made, but not documented; employer match formulas or eligibility requirements are not clearly communicated; fees are not tracked, or are unknown.

From a fiduciary standpoint, any of these items are problematic. If it's not documented, it's difficult to prove a prudent process is being followed.

Contact me and I'll help review your process and make sure your plan meets the ERISA standards.







(CliftonLarsonAllen)

Keep Your Money

Most investors don't lose money because markets decline; they lose money because they sell their holdings during market declines. A patient, long-term investor buys quality positions and holds them through good times and bad.

The market can recover from a correction; your portfolio cannot recover if you sell in a panic and are not invested anymore in the first place.

If you are concerned about market volatility, talk to me and let's work through it together.

The Biggest Mistake Many Investors Make

Market volatility is a completely normal (if sometimes unpleasant) part of investing. Long-term, patient investors are typically rewarded with growth in their portfolios when they stay invested in the market and avoid panic-selling. Temporary declines frequently are the cost of long-term growth.

Warren Buffett himself is quoted as saying, "Be fearful when others are greedy and be greedy when others are fearful."

Let me know in the comments how YOU feel when the market starts going down; let's talk about it.

The Hype Machine

Retail interest in SpaceX helped create the largest IPO (Initial Public Offering) in history. Beware the hype - it is quite common for newly public companies to experience significant price swings in their stock price in the weeks and months after trading on the open market, especially when company insiders are allowed to sell their shares after the initial lockup period expires.

In the case of SpaceX, the current valuation is out of all proportion to its' fundamentals as a profitable business; a prudent, patient investor will avoid the feeding frenzy. Instead, focus on broad-market index ETFs which prevent any one single company's turbulence from impacting your portfolio significantly.




Exchange-traded funds are sold only by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the investment company, can be obtained from your financial professional at 310-497-2471. Be sure to read the prospectus carefully before deciding whether to invest.

Take a Break!

Is checking your investment accounts daily really worth the stress or aggravation? The market will go up, down, & sideways regardless of how often we look at it. In fact, usually the most tranquil investors are the ones who check their accounts less frequently.

A patient, disciplined investor works with a trusted advisor to identify their appropriate risk tolerance, time horizon, and budget goals; invests according to those criteria, and chills. A quick review periodically during the year is plenty sufficient to determine if any corrections are necessary.

Let's have a conversation about your goals and how to help you achieve them.