Non-profit Health and Human Services Firm*
As fiduciary standards for retirement plans get more complicated, how can you get truly effective support?
A Midwest-based health and human services firm, this M3 Financial client knows all about taking care of people. But when it comes to fiduciary expertise, the non-profit wisely chose to seek outside support. The client wanted to make sure they were both meeting ERISA standards and providing their employees an outstanding retirement plan program. To put it another way, they didn’t want to get in over their heads with something as important—and increasingly complex—as fiduciary oversight. So, they turned to the marketplace looking for a consultant and ultimately selected M3 Financial.
Even before the client opted for M3 Financial, we had identified and shared specific strategies for the non-profit to save money. Once we were chosen, we began putting those strategies into action.
Our first step was to help the client negotiate better fees with their then-current retirement plan provider. When the provider wouldn’t come down to where we thought they could be, M3 Financial led a request for proposal process on behalf of the client. That resulted in finding a highly qualified provider—with much lower fees.
Meanwhile, M3 Financial reviewed the mutual funds and retirement strategies for the client’s employees, including evaluating the investment risk of each participant’s plan. The review indicated that some participants had plans that were too conservative, whereas others were too aggressive.
M3 Financial proposed that all retirement plan participants be put into age-based investment portfolios, which would better suit their individual time horizons and their specific retirement needs.
So where do these actions leave the non-profit today? Beginning on October 1st, 2018, the client has a new retirement plan provider and is paying less in fees. That’s especially significant when you realize that every dollar saved means employees get more money for retirement.
*The client name is withheld in accordance with compliance regulations surrounding the fiduciary duty of M3 Financial as a financial advisor. This case study may not be indicative of all client experiences.
Investment advisory services offered through M3 Financial, a registered investment advisor and separate entity from M3 Insurance.