Case Study 1

National commercial security solutions and managed services company; 450+ employees

The Challenge

A lack of engagement by previous advisor left employees without a strategy to meet their retirement goals, while large cash balances indicated a lack of financial education by the previous advisory group. Inadequate and expensive investment options were available and did not include a Roth 401(k) offering. Some fiduciary concerns were: No Investment Policy Statement (IPS), formal Investment Committee or annual review. On top of all this, the current record-keeping platform was administratively burdensome and required many manual processes.

The Solution

  • Benchmarked existing plan against competitors to assess cost, technology offering and investment options
  • Remedied fiduciary concerns by addressing gaps in employee education and compliance management
  • Implemented an employee education program, including 1-1 meetings and on-site visits
  • Selected a new, full-service plan administrator and 401(k) with better and cost-effective investment options, innovative technology platform, and transparent fees and costs

The Result

  • Reduced plan costs by 20% while enhancing the overall benefits
  • Improved returns in age appropriate, target date funds and low-cost, passive investment options
  • Helped sponsor meet fiduciary responsibilities by creating an Investment Committee and IPS
  • Modernized processes by going paperless thereby saving Human Resources time and money
  • Decreased the number of accounts held by former employees reducing administrative burden and plan cost
  • Corrected inequitable, revenue sharing calculation to meet fiduciary obligations

Individual experiences referenced above may not reflect the future experience of any one client. Past performance is no guarantee of future results. Wells Fargo Advisors Financial Network and Seventy2 Capital are not tax or legal advisors. You should consult with your attorney, accountant and/or estate planner before taking any action. Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Seventy2 Capital is a separate entity from WFAFN.