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Transcript

Beyond the Match: Getting More from Your Company’s 401(k) · Money In Motion with Klaas Financial

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Speaker 1: And our phone lines, they are open to you right
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Speaker 1: now at 608-321-1310. That's 608-321-1310. If you've got questions for
0:08
Speaker 1: our retirement planning professionals from Kloss Financial, you can give
0:11
Speaker 1: us a call right now. We'll get you on the air, 608-321-1310.
0:13
Speaker 1: Of course, you can learn all about Kloss Financial on
0:16
Speaker 1: their website, klossfinancial.com. That's spelled K-L-A-S, financial.com. Great website to
0:23
Speaker 1: learn about Kloss Financial. There's separate divisions, how they can
0:25
Speaker 1: help you, or if you're an employer, some great options
0:28
Speaker 1: there for you. Again, that available at KlausFinancial.com. You can
0:31
Speaker 1: also listen to this and previous shows, podcasts, all online
0:35
Speaker 1: at KlausFinancial.com, as well as schedule a complimentary conversation right
0:39
Speaker 1: from the website. Or you can give them a call, 608-442-5637.
0:44
Speaker 1: Don't forget that first appointment at Klaus Financial. It will
0:47
Speaker 1: be complimentary to you. Again, their telephone number, 608-442-5637.
0:51
Speaker 2: 442-5637.
0:52
Speaker 3: And we've got CJ Kloss in studio this morning with us. CJ,
0:55
Speaker 3: and you're not alone. Good morning to you. How are
0:57
Speaker 3: you doing this week?
0:58
Speaker 4: I'm doing great, Sean.
0:59
Speaker 3: How are you?
0:59
Speaker 1: I'm doing absolutely fantastic. And you brought along a guest
1:02
Speaker 1: this morning, Aaron Shuler. And let's tell us a little
1:06
Speaker 1: bit about Aaron.
1:07
Speaker 4: Yeah, Aaron joined us here not too long ago as
1:09
Speaker 4: actually as Forrest Ross, who is our lead kind of
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Speaker 4: retirement plans division overseer, what we call Kloss 401k. He
1:18
Speaker 4: retired recently, which we're happy to see.
1:20
Speaker 3: We are a.
1:20
Speaker 4: Retirement planning firm, crying out loud. I suppose we should
1:23
Speaker 4: let people retire. But we are super excited to have
1:26
Speaker 4: Aaron joining us. And our topic today revolves all around
1:28
Speaker 4: employer-sponsored retirement plans, which is why Aaron's here today.
1:31
Speaker 3: Fantastic. Aaron, welcome to the show. Great to have you. Hey,
1:34
Speaker 3: good morning, Sean.
1:34
Speaker 2: Thanks for having me.
1:35
Speaker 1: It's exciting to have you along. And we've got a
1:37
Speaker 1: full action-packed program. As CJ mentioned, we're going to be
1:40
Speaker 1: talking about going beyond the match, getting more from your
1:42
Speaker 1: company's 401k. Before we get to this week's conversation, though,
1:46
Speaker 1: Of course, each and every week, our friends from Kloss
1:48
Speaker 1: Financial provide a fantastic prize. This week, no exception, a
1:51
Speaker 1: chance to win a $ 25 gift card to Best Buy
1:54
Speaker 1: with the Kloss Quiz Question of the Week. Little tip,
1:56
Speaker 1: if you listen closely to the program, oftentimes the question
1:58
Speaker 1: and answer to the Kloss Quiz Question of the Week
2:00
Speaker 1: comes up during the program, so you definitely want to
2:02
Speaker 1: pay close attention to every week's show.
2:04
Speaker 3: And before we get rolling.
2:05
Speaker 1: On this week's topic, CJ, let's actually look back at
2:08
Speaker 1: last week's show and get the question and answer there
2:10
Speaker 1: as well.
2:11
Speaker 4: Yeah, thanks everyone for listening and congrats to our winner
2:15
Speaker 4: from last week. So we have a little bit of
2:17
Speaker 4: fun with these Kloss Quiz questions of the week. We
2:19
Speaker 4: hope you do as well. Last week's question was a
2:22
Speaker 4: true or false question. It was tax planning is about
2:26
Speaker 4: always paying the least amount of taxes today. And the
2:30
Speaker 4: question was, is that true or false? And for those
2:33
Speaker 4: who are listening closely, you should know the answer is false.
2:36
Speaker 4: Tax planning is about paying the least amount of taxes always.
2:39
Speaker 4: over time, not just today. But listen closely because there
2:43
Speaker 4: will be another question at the end of our show today.
2:46
Speaker 1: And it's always a fun one. And again, it pays
2:48
Speaker 1: to pay attention to the program. Also, if you missed
2:50
Speaker 1: last week's show, oh, what a great one. Listen back
2:52
Speaker 1: right at KlausFinancial.com. That's Klaus, K-L-A-A-S, Financial.com. And today we're
2:57
Speaker 1: going to be talking about something that really impacts millions
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Speaker 1: of folks and nearly every business owner who offers retirement
3:03
Speaker 1: benefits to their employees. And of course, joining us this
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Speaker 1: morning is Aaron Schuler, with the CLOS 401k. Aaron, many employers,
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Speaker 1: you know, they think of offering a 401k plan that
3:12
Speaker 1: means simply, you know, you choose a provider and deciding
3:14
Speaker 1: whether or not to offer a match. But the title
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Speaker 1: today is telling beyond the match. What exactly do you
3:21
Speaker 1: mean by that, Aaron?
3:22
Speaker 3: Yeah, great question.
3:23
Speaker 2: And I wish it was that simple in your description.
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Speaker 2: But you know, many employers view their retirement plan as
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Speaker 2: a necessary benefit rather than a strategic tool. The reality
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Speaker 2: is that a well designed retirement plan can help a
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Speaker 2: business attract quality employees and improve retention, increase employee financial wellness,
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Speaker 2: strengthen company culture, as well as create a valuable tax
3:42
Speaker 2: benefit for business owners. The employer match is important, but
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Speaker 2: it's often just one piece of a much bigger opportunity.
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Speaker 2: The best plans are designed intentionally to benefit both employees
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Speaker 2: and the business itself.
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Speaker 1: Well, so Aaron, then, you know, as we're kind of
3:56
Speaker 1: leading up to retirement plans and that division at Kloss Financial,
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Speaker 1: and now that you're leading that, what are some of
4:02
Speaker 1: the biggest opportunities that you see employers overlooking?
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Speaker 3: Yeah, yeah.
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Speaker 2: One of the biggest opportunities is going to sound really simple,
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Speaker 2: but it's simply reviewing the plan on a regular basis.
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Speaker 2: We often meet employers who haven't examined their 401k plans
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Speaker 2: in years. Questions employers should often ask themselves on a
4:19
Speaker 2: routine basis include, is participation where I would like it
4:22
Speaker 2: to be? Are employees saving enough? Are we using automatic
4:25
Speaker 2: features such as automatic enrollment and automatic escalation? Is our
4:30
Speaker 2: employer match or contribution structure still appropriate? Many plans can
4:34
Speaker 2: be oftentimes improved through relatively small adjustments that can make
4:39
Speaker 2: profound impacts to overall participant outcomes. For example, an employer
4:44
Speaker 2: may have a generous match, but if employees struggle to
4:47
Speaker 2: get online and enroll in the plan, many may never
4:50
Speaker 2: even get started. Adding something such as an automatic enrollment
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Speaker 2: feature while preserving an employee's ability to opt out if
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Speaker 2: they no longer want to be automatically enrolled is one
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Speaker 2: simple way That can make participation easier without requiring the
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Speaker 2: employer to redesign the entire plan. The retirement plan, at
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Speaker 2: the end of the day, shouldn't just exist. It should
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Speaker 2: be something that works towards a common purpose.
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Speaker 1: Really good stuff this morning as we talk with Aaron
5:15
Speaker 1: Shuler and CJ Kloss. They are our retirement planning professionals
5:18
Speaker 1: from Kloss Financial. If you've got a question, whether it's
5:20
Speaker 1: about this week's topic or anything related to retirement planning,
5:23
Speaker 1: we'd love to have you join us.
5:24
Speaker 3: Get that question answered immediately. Right on air. All you
5:26
Speaker 3: got to do is dial in to get on the show. 608-321-1310.
5:30
Speaker 1: That's 608-321-1310. Don't forget, you can learn all about Kloss
5:34
Speaker 1: Financial on their website, klossfinancial.com, and their telephone number, 608-442-5637.
5:41
Speaker 1: No charge for that initial. Get to know your appointment
5:43
Speaker 1: at Kloss Financial. It will be complimentary to you. Again,
5:46
Speaker 1: their number, 608-442-5637. So let's talk then about employee participation, CJ.
5:52
Speaker 3: A lot of, obviously, employers.
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Speaker 1: They become a bit frustrated when, of course, they're investing
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Speaker 1: money into a plan, but the employees, they don't fully
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Speaker 1: utilize it. How can employers encourage better engagement from their employees?
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Speaker 4: Yeah, good question, Sean. So, again, today's show is all
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Speaker 4: about employer-sponsored retirement plans, which is most commonly referred to
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Speaker 4: as 401Ks or 403Bs. Or 401As or 457s or simple
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Speaker 4: IRAs or SEP IRAs. And by the way, this is
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Speaker 4: why people often don't do this stuff because there's so
6:23
Speaker 4: many names and complications to it, which is why people
6:26
Speaker 4: like myself and Aaron exist to help you work through
6:29
Speaker 4: the complexity. But the whole point of the show today
6:31
Speaker 4: is around employer-sponsored retirement plans. But some things we're going
6:35
Speaker 4: to talk about will apply to the employers themselves, right?
6:39
Speaker 4: And really, that's A big focus of today's show is
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Speaker 4: for anybody who's a small business owner or an employer
6:46
Speaker 4: or even just a key decision maker inside of a
6:48
Speaker 4: larger corporation in overseeing benefits. But for those of you
6:52
Speaker 4: who are just participants in an employer-sponsored retirement plan, pay
6:56
Speaker 4: attention because a lot of the things we're going to
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Speaker 4: talk about you can take back to your businesses as
7:00
Speaker 4: well to suggest little modifications. But you're asking about how
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Speaker 4: can you encourage better participation. So research and experience matters.
7:09
Speaker 4: have consistently shown us that participation increases when the employer
7:14
Speaker 4: makes savings easier. So Aaron already kind of hinted at this,
7:17
Speaker 4: but features such as automatic enrollment and automatic contribution increases
7:23
Speaker 4: can improve participations and saving behaviors significantly. A clear investment
7:28
Speaker 4: menu and ongoing education can also make that plan easier
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Speaker 4: for employees to understand and engage. You know, Aaron just
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Speaker 4: gave us an example like, you can have the best
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Speaker 4: match in the world, but if I go online to
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Speaker 4: sign up for this 401k plan and I get discouraged
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Speaker 4: and I just don't come back to it. I may
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Speaker 4: just default into whatever the defaults are. By the way,
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Speaker 4: that's why defaults matter. Employers, for those of you listening
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Speaker 4: out there, a lot of times, even if you have
7:55
Speaker 4: the best website, people just rely on defaults. So the
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Speaker 4: question is, what are your defaults? More on that in
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Speaker 4: a moment. But again, the easier employers can make the progress,
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Speaker 4: the more likely employees are to participate in the plan
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Speaker 4: and stay engaged.
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Speaker 1: And so, CJ, as we talk about this stuff beyond
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Speaker 1: helping employees save, how can the retirement plan benefit the
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Speaker 1: business owner themselves?
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Speaker 3: Well, yeah.
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Speaker 4: So for those who don't know, I'm a business owner myself.
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Speaker 4: So this is an area I care deeply about because
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Speaker 4: I see the issue from both sides as an employee
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Speaker 4: and an employer and business owner. So we at Class Financial,
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Speaker 4: we want to help our employees prepare for retirement, but
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Speaker 4: we also need a plan that makes sense for the
8:36
Speaker 4: business and aka people like me. So from my perspective,
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Speaker 4: an employer-sponsored retirement plan can provide tremendous value to business owners.
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Speaker 4: In many cases, it can help owners build retirement savings
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Speaker 4: on a tax-advantaged basis, recruit and retain key employees, create
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Speaker 4: a more competitive benefits package to, again, retain key employees
8:58
Speaker 4: and retain me. and then improve employee satisfaction and loyalty
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Speaker 4: to the overall organization. So for many business owners, the
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Speaker 4: retirement plan may become one of the most valuable financial
9:09
Speaker 4: planning tools available to them as the owner. That's one
9:14
Speaker 4: reason we encourage employers to think strategically rather than simply
9:17
Speaker 4: focusing on the administration and compliance. Aaron can testify. it's
9:22
Speaker 4: like there's two brains of small business owners. One is
9:26
Speaker 4: I got to do this because people are bothering me
9:28
Speaker 4: about it, right? That's the administration and compliance. And those
9:31
Speaker 4: are the ones who go, how much is this going
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Speaker 4: to cost? And they're kind of humming and hawing. And
9:36
Speaker 4: then they go, how much can I put in? And
9:38
Speaker 4: do I have to contribute for other people? And here's
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Speaker 4: what I'd say.
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Speaker 3: I get it.
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Speaker 4: I'm a small business owner. I understand that running businesses,
9:45
Speaker 4: very complicated, can be very expensive. But my encouragement would be,
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Speaker 4: If you're going to move towards becoming an enterprise that
9:53
Speaker 4: values its people that work for you, you've got to
9:56
Speaker 4: eventually make that shift from looking at your people as
10:01
Speaker 4: cost to the business, as assets to the business, right?
10:06
Speaker 4: And once you make that shift of looking at your
10:08
Speaker 4: people as the asset that provides the service to whatever
10:12
Speaker 4: that is, right? If you're manufacturing or professional services, Once
10:15
Speaker 4: you make that shift, then suddenly the 401k takes on
10:18
Speaker 4: new meaning, right? It's like, well, how can this help,
10:21
Speaker 4: you know, Susie and Jimmy? How can I help them? And,
10:24
Speaker 4: oh gosh, if we have profits, you know, is there
10:26
Speaker 4: something we can do to like kick it into a
10:28
Speaker 4: plan without impacting their taxes? And the answer is actually, yeah,
10:31
Speaker 4: that's called a profit sharing contribution. So you get my point.
10:34
Speaker 4: It's just from almost like a have to, to get
10:38
Speaker 4: to in the business owner's mindset.
10:41
Speaker 1: So really, as we talk about this stuff, really important
10:44
Speaker 1: conversations as CJ highlights as well. Not only if you're
10:46
Speaker 1: an employer, but as an employee, you're hearing this stuff.
10:49
Speaker 1: Definitely a great day to stop in and talk with
10:50
Speaker 1: your employer about the program. Also talk with them, HR
10:54
Speaker 1: folks as well, that may be in control of those
10:56
Speaker 1: type of decisions. You can, of course, share the program
10:58
Speaker 1: and the podcast as well. Just head on over to KlossFinancial.com.
11:01
Speaker 1: That's Kloss, K-L-A-S-Financial.com. From there, you can listen back to
11:05
Speaker 1: this and previous shows, podcasts. You can subscribe as well. Again,
11:08
Speaker 1: that website, klossfinancial.com. That's Kloss, K-L-A-S, financial.com. You can also
11:14
Speaker 1: at the website schedule a complimentary chat, complimentary conversation. Again,
11:17
Speaker 1: that available to you at klossfinancial.com. Or pick up the phone,
11:22
Speaker 1: give them a call, 608-442-5637. No charge for that initial
11:24
Speaker 1: get-to-know-you appointment at Kloss Financial. It will be complimentary to you. Again,
11:28
Speaker 1: their number, 608- 442-5637. We'll continue our conversation with CJ
11:34
Speaker 1: and Aaron.
11:34
Speaker 3: We'll talk about two words.
11:35
Speaker 1: Fiduciary responsibility might make people's hearts start going boom, boom, boom, boom, boom,
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Speaker 1: yanking a little uneasy. Trust me, it's not as scary
11:43
Speaker 1: as it sounds. Aaron will lay all of that out
11:45
Speaker 1: next as Money in Motion. with Kloss Financial continues right
11:48
Speaker 1: here on 1310 WIBA. Got a great opportunity for you
11:51
Speaker 1: right now at 608-321-1310. That's 608-321-1310. If you have questions
11:57
Speaker 1: for our retirement planning professionals from Kloss Financial, CJ Kloss
12:00
Speaker 1: and Aaron Shuler, love to get you on the air. Again,
12:03
Speaker 1: the telephone number 608-321-1310. Of course, you can learn all
12:07
Speaker 1: about Kloss Financial on their website, klossfinancial.com. That's Klaus, K-L-A-A-S, financial.com.
12:13
Speaker 1: Telephone number for the office right here in Madison, 608-442-5637.
12:18
Speaker 1: No charge for that initial get-to-know-you appointment at Klaus Financial.
12:21
Speaker 1: It will be complimentary to you. Again, their number, 608-442-5637.
12:26
Speaker 1: Going beyond the match this week, we're helping and talking
12:29
Speaker 1: with employers. Of course, helping them, it's Klaus Financial. They
12:32
Speaker 1: help them build retirement plans that work better for both
12:35
Speaker 1: their employees and their businesses.
12:37
Speaker 3: And Aaron.
12:38
Speaker 1: Another topic that you often hear is the conversation about
12:42
Speaker 1: fiscal responsibility. Now, sounds pretty intimidating. What does that actually mean, though,
12:47
Speaker 1: real world for employers?
12:49
Speaker 3: Yeah, yeah.
12:49
Speaker 2: Fiduciary responsibility. And it sounds like an awfully big word,
12:53
Speaker 2: but it's really not. And it sounds very scary, but
12:56
Speaker 2: it's really more intimidating on a surface level than it
12:59
Speaker 2: really needs to be when you dig into it. But
13:01
Speaker 2: fiduciary responsibility simply means acting in the best interest of
13:04
Speaker 2: someone other than yourself as it relates to sponsoring a
13:09
Speaker 2: 401k plan, if you're a business owner, it simply means
13:12
Speaker 2: putting your plan participants first ahead of your own interests
13:16
Speaker 2: as an employer. So at a basic level, what does
13:19
Speaker 2: that mean? There are some guideposts that regulators provide, but
13:22
Speaker 2: at a basic level, employers should understand, A, how their
13:25
Speaker 2: plan is simply being managed. What fees participants are paying
13:30
Speaker 2: out of their participant accounts. How investments are being selected
13:33
Speaker 2: and ultimately monitored on an ongoing basis. who the service
13:37
Speaker 2: providers are and what they're ultimately responsible for. We're oftentimes
13:41
Speaker 2: surprised that most employers don't even know who their service
13:44
Speaker 2: provider is and lo and behold, what they actually do.
13:49
Speaker 2: But the good news is, is that employers don't have
13:51
Speaker 2: to do this themselves. They can hire professionals to help
13:54
Speaker 2: them navigate these obligations and to help them understand these rules.
13:59
Speaker 2: The right retirement plan advisor can ultimately help employers understand
14:02
Speaker 2: these responsibilities, help evaluate fees and investments, coordinate with all
14:06
Speaker 2: of the service providers at play, and establish a prudent
14:10
Speaker 2: review process. The employer may ultimately still have some responsibilities
14:15
Speaker 2: that they take on as a fiduciary by definition, but
14:18
Speaker 2: at the end of the day, they don't have to
14:20
Speaker 2: navigate this without any help or support.
14:23
Speaker 1: Great stuff to know as we talk this morning with
14:25
Speaker 1: our retirement planning professionals, Aaron Shuler and CJ Kloss. Of course,
14:28
Speaker 1: they come to us from Kloss Financial online, klossfinancial.com. That's Kloss, K-L-A-S, financial.com.
14:35
Speaker 1: And CJ, other areas, another area maybe where employers should be,
14:39
Speaker 1: you know, periodically evaluating their plans?
14:43
Speaker 4: Yeah, this is an area that we're super passionate about.
14:46
Speaker 4: It's employee education. So we talked about it previously, but
14:49
Speaker 4: eventually throughout the evolution of a business, they go from
14:52
Speaker 4: looking at employees as a cost center to a value center.
14:56
Speaker 4: And so once you get to that place, then you
14:58
Speaker 4: start thinking about the 401k plan as a benefit instead
15:00
Speaker 4: of a cost. And as part of that, you start
15:02
Speaker 4: looking at the education and knowledge of those employees as
15:06
Speaker 4: a benefit, not a cost as well. So you start
15:08
Speaker 4: caring about things like, hey, Aaron, I understand that you
15:11
Speaker 4: guys do 401k plans, but what I really care about
15:14
Speaker 4: is like, how are you going to help my employees
15:17
Speaker 4: understand this thing and engage it in a meaningful way?
15:20
Speaker 4: So we frequently see employers put significant effort into selecting
15:24
Speaker 4: a plan provider and investment lineup, but then they spend
15:27
Speaker 4: very little time helping employees understand how to use those benefits. So,
15:32
Speaker 4: you know, some questions employers should ask themselves is do
15:35
Speaker 4: employees understand the match that we offer? Do they know
15:38
Speaker 4: the difference between Roth and pre-tax contributions? Let's actually take
15:42
Speaker 4: a step back, think about that match. It's very common
15:45
Speaker 4: to have a match that's, say, 50 cents on every
15:48
Speaker 4: dollar up to 6% for a total of three. Does
15:52
Speaker 4: that make sense? You put in six, we give you three.
15:54
Speaker 4: Aaron and I will commonly talk to people, even friends
15:58
Speaker 4: of ours, and say, oh, I work in the space.
16:02
Speaker 4: How does your match work? I get a 6% match.
16:05
Speaker 4: And Aaron and I look at each other like, very
16:07
Speaker 4: few plans to do a dollar for dollar 6% match.
16:09
Speaker 4: We're like, well, and I'm not saying it doesn't exist.
16:12
Speaker 4: We just will be like, do you mean 50 cents
16:15
Speaker 4: on the dollar up to 6%? They go, I don't
16:16
Speaker 4: know what you're talking about. Exactly. Exactly. That's the problem
16:21
Speaker 4: is that you don't know what we're talking about. And
16:24
Speaker 4: if you don't put in the six, you're not getting
16:26
Speaker 4: the three. You get the idea, right? So anyway, employers
16:31
Speaker 4: should ask themselves, Do your employees understand the match? Do
16:34
Speaker 4: they understand the difference between Roth and pre-tax? Do they
16:38
Speaker 4: know how much they should be saving? Do they understand
16:41
Speaker 4: how their investments work? Things like this. Now, obviously, there's
16:45
Speaker 4: part of this dialogue that kind of brings into question,
16:47
Speaker 4: should my employees be working with an individual financial planner?
16:53
Speaker 4: And honestly, the answer is maybe. Maybe, but maybe not, right? So...
16:58
Speaker 4: If that is true, what's the closest thing you as
17:01
Speaker 4: an employer can do to at least help them engage
17:04
Speaker 4: the 401k plan in an organized, effective, long-term way? And
17:09
Speaker 4: the answer would be hire a firm that cares about
17:11
Speaker 4: education so that they'll actually come in. They're not, where
17:14
Speaker 4: it gets a little tricky is sometimes the employees think
17:16
Speaker 4: that Aaron is their personal financial advisor. And the reality
17:19
Speaker 4: is actually he's not. He is an advisor to the
17:23
Speaker 4: plan and to the company itself. He will certainly give
17:26
Speaker 4: guidance to the individual. We run 30-minute individual meetings all day,
17:30
Speaker 4: every day. But we don't know who these people are,
17:32
Speaker 4: who their spouse is, how many kids they have, how
17:34
Speaker 4: much debt they have, what their goals are. You get
17:35
Speaker 4: the idea, right? But the idea being Aaron can help
17:40
Speaker 4: these people get a long way down the path towards
17:43
Speaker 4: better understanding how much they should save with just a
17:47
Speaker 4: quick 30-minute individual session or in a group setting when
17:51
Speaker 4: there's a group meeting. So Just cannot suggest to any
17:54
Speaker 4: employers listening out there, if your advisor to your 401k
18:00
Speaker 4: plan isn't at least annually offering employee education, we would say,
18:05
Speaker 4: in our opinion, you're missing at least 50% of the
18:08
Speaker 4: benefit of an advisor.
18:09
Speaker 1: Talking about a huge benefit there for sure as we
18:11
Speaker 1: talk with CJ Klaassen. Aaron Shuler, they are our retirement
18:14
Speaker 1: planning professionals from Kloss Financial. If you've got a question,
18:16
Speaker 1: we've still got time for your call.
18:19
Speaker 4: 608-321-1310.
18:19
Speaker 1: That's 608-321-1310. Love to have you join us this morning
18:23
Speaker 1: on Money in Motion with Kloss Financial. Don't forget, you
18:26
Speaker 1: can learn all about Kloss Financial as we talk this week.
18:29
Speaker 1: about your company's 401k. You can learn about how Kloss
18:33
Speaker 1: Financial can help you as an employer, of course, help
18:35
Speaker 1: you as well as an individual, all at the website klossfinancial.com.
18:39
Speaker 1: That's Kloss, K-L-A-S, financial.com. You can also schedule a complimentary
18:43
Speaker 1: chat conversation right from the website, klossfinancial.com, or you can
18:47
Speaker 1: give them a call, 608-442-5637. No charge for that initial
18:51
Speaker 1: get-to-know-you appointment at Kloss Financial. It will be complimentary to you.
18:55
Speaker 1: We'll continue our conversation with CJ and Aaron. We will
18:57
Speaker 1: do that next as Money in Motion with Kloss Financial
19:00
Speaker 1: continues right here.
19:01
Speaker 3: On 1310 WIBA.
19:04
Speaker 1: Talking with our retirement planning professionals from Kloss Financial, CJ
19:08
Speaker 1: Kloss and Aaron Shuler. Of course, Kloss Financial, you can
19:10
Speaker 1: learn all about them online. Especially important this morning as
19:13
Speaker 1: we're talking a lot to employers. If you've never explored
19:16
Speaker 1: Kloss Financial, head on over there right now on the website, klossfinancial.com.
19:20
Speaker 1: A lot of great information about how they can assist
19:22
Speaker 1: you and assist you in these very topics we're talking
19:24
Speaker 1: about this week, which is.
19:25
Speaker 3: Going beyond the match, getting more from your company's 401k.
19:29
Speaker 1: Again, if you missed any part of today's program or
19:31
Speaker 1: you want to listen back or you want to share
19:33
Speaker 1: it with somebody, you head on over to klossfinancial.com.
19:35
Speaker 3: You can do just that.
19:36
Speaker 1: You can also subscribe to the podcast right from the
19:39
Speaker 1: website as well as schedule a conversation right at klossfinancial.com.
19:42
Speaker 1: That's kloss, K-L-A-S-Financial.com. And their telephone number, 608-442-5637. No charge
19:50
Speaker 1: for that initial continuing appointment at Kloss Financial. It'll be
19:53
Speaker 1: complimentary to you. Again, the number 608-442-5637. So Aaron, if
19:57
Speaker 1: an employer is listening today and wants to kind of
19:59
Speaker 1: evaluate their current retirement plan, where.
20:02
Speaker 3: Should they begin? How should they start?
20:03
Speaker 2: Yeah, yeah. Just a simple retirement plan health check is
20:06
Speaker 2: what we would recommend. And that starts with, you know,
20:08
Speaker 2: really just looking in the mirror and asking yourself a
20:10
Speaker 2: couple really basic questions about your retirement plan. It starts with,
20:15
Speaker 2: you know, is participation strong in the plan? Are my
20:17
Speaker 2: employees taking advantage of what's available to them? Are employees
20:21
Speaker 2: adequately saving enough if they are participating in the plan?
20:24
Speaker 2: Has my plan been benchmarked by a third party in
20:28
Speaker 2: recent history? Are fees, all total plan fees, reasonable compared
20:33
Speaker 2: to benchmarks and the value that I'm receiving? Are employees
20:36
Speaker 2: receiving education at least annually? CJ did a great job
20:39
Speaker 2: of hitting on the value of having an advisor that
20:42
Speaker 2: is present in front of the room and in front
20:44
Speaker 2: of participants providing education on why participants should participate in
20:49
Speaker 2: their plan. You should be doing that on a routine
20:52
Speaker 2: basis at least annually is what we would recommend. Does
20:55
Speaker 2: the plan still support the company's goals at the end
20:58
Speaker 2: of the day? This is not meant to be a
21:00
Speaker 2: static plan design. Things change, right? Companies change, ownership changes,
21:06
Speaker 2: landscape changes, regulations change. It's meant to be a dynamic
21:10
Speaker 2: benefit as part of your overall benefits for your company.
21:14
Speaker 2: So always take a look at things as things change
21:16
Speaker 2: with your goals. At the end of the day, are
21:19
Speaker 2: plan investment options being reviewed through a documented process? That's
21:22
Speaker 2: what regulators care about. Is there a documented process for
21:26
Speaker 2: how you go about selecting or deselecting investments? Are the
21:29
Speaker 2: planned service providers delivering the level of support to you,
21:32
Speaker 2: not only as the business owner, the employer, but also
21:35
Speaker 2: to the employees? Is it to the level of expectations?
21:38
Speaker 2: You know, what we find is that employers are often
21:40
Speaker 2: surprised by the opportunities they uncover just by simply asking
21:43
Speaker 2: some of these questions. And sometimes the necessary changes are
21:47
Speaker 2: quite small. Other times we identify opportunities that can dramatically
21:51
Speaker 2: improve the experience, not just for the business owner, the company.
21:55
Speaker 2: but also and furthermore, as we learn through fiduciary responsibility
22:00
Speaker 2: for the participant.
22:01
Speaker 3: That's really good stuff.
22:02
Speaker 1: This morning as we talk with Aaron Shuler and CJ Kloss,
22:04
Speaker 1: our retirement planning professionals from Kloss Financial Online, klossfinancial.com.
22:08
Speaker 3: That's Kloss, K-L-A-S, financial.com.
22:11
Speaker 1: So Aaron, then are there any warning signs that should
22:13
Speaker 1: tell an employer it may be time to be reviewing
22:16
Speaker 1: that plan?
22:17
Speaker 3: Yeah, absolutely.
22:17
Speaker 2: And they're there, but you have to be looking. So,
22:19
Speaker 2: you know, the first one we'd recommend taking a look
22:22
Speaker 2: at is participation. Is there low participation? Do you have
22:25
Speaker 2: employees coming to you that are confused, expressing frustration or
22:30
Speaker 2: confusion with the 401k plan benefits or service providers? Limited
22:35
Speaker 2: education from current service providers or current advisories attached to
22:40
Speaker 2: the plan. Unexplained fees, an investment lineup that has not
22:44
Speaker 2: been reviewed recently, or maybe it's just service issues that
22:47
Speaker 2: continue to go unresolved. That can all be reasons to
22:50
Speaker 2: take a closer look at your retirement plan.
22:52
Speaker 1: And so, CJ, as we kind of take it down
22:54
Speaker 1: the home stretch, I'm kind of hearing that the goal
22:57
Speaker 1: isn't simply having a 401k. It's really making sure that
23:01
Speaker 1: it's actually helping employees prepare for retirement also while supporting
23:05
Speaker 1: the company's objectives?
23:07
Speaker 4: Bingo. Yeah, exactly, Sean. So we would say a successful
23:11
Speaker 4: retirement plan should create value for everyone involved. When employers
23:16
Speaker 4: periodically review their plan design, the employee participation, the fees,
23:21
Speaker 4: the investments, education, and service providers, they often find meaningful
23:26
Speaker 4: opportunities for improvement. So the best plans truly do go
23:32
Speaker 4: well beyond the match as the title of our show
23:35
Speaker 4: today hits on. So listen. We're in this space, dedicated
23:40
Speaker 4: in this space. If any employers are out there who
23:43
Speaker 4: are looking for kind of a second glance or a
23:44
Speaker 4: fee benchmark or anything like that, we would relish the
23:47
Speaker 4: opportunity to chat with you. And yet, here's what I
23:50
Speaker 4: would also say. For those of you who are listening
23:51
Speaker 4: and going like, yeah, my plan kind of works and
23:55
Speaker 4: I do that and I've got an advisor on it,
23:56
Speaker 4: we would say.
23:57
Speaker 2: Awesome, awesome.
23:58
Speaker 4: We are not looking to displace existing great plan providers
24:02
Speaker 4: because there's a lot of them out there, really, really
24:05
Speaker 4: great people in this space. But there's some that are
24:08
Speaker 4: not as great. And so those are the ones that
24:11
Speaker 4: we want to just help employers, businesses, employees better understand
24:16
Speaker 4: what's going on inside of these plans and ultimately save
24:20
Speaker 4: for the future.
24:20
Speaker 2: Yeah. Right.
24:21
Speaker 4: That's kind of the point here is it's a tool
24:23
Speaker 4: for saving for the future.
24:24
Speaker 3: You could be like Forrest. You could be like Malia.
24:26
Speaker 3: That's right.
24:28
Speaker 4: We did have one of our employers say like, well,
24:30
Speaker 4: this is kind of inconvenient for me now that Forrest
24:33
Speaker 4: isn't here.
24:33
Speaker 3: And I'm like, we.
24:34
Speaker 4: Do retirement planning. I don't know what to tell you.
24:36
Speaker 4: This is part of the gig. And she did kind
24:39
Speaker 4: of laugh. She said, that's a good point.
24:40
Speaker 1: Yeah, it's great stuff. It's a great day to start
24:42
Speaker 1: that conversation. Of course, you can learn more as well. KlossFinancial.com.
24:46
Speaker 1: That's Kloss, K-L-A-S-Financial.com. Again, speaking of that conversation, that complimentary
24:51
Speaker 1: one you can book right online, KlossFinancial.com. That's Kloss, K-L-A-S-Financial.com.
24:57
Speaker 1: Or pick a phone, give them a call right here
24:58
Speaker 1: at the office, 608-442-5637. No charge for that initial. Get
25:03
Speaker 1: to know your appointment at Kloss Financial. It will be
25:05
Speaker 1: complimentary to you.
25:06
Speaker 3: Again, their number, 608-442-5637.
25:07
Speaker 1: You want to hold on to that telephone number now
25:11
Speaker 1: as well because it's time for the Kloss Quiz Question
25:14
Speaker 1: of the Week.
25:14
Speaker 3: It works like this.
25:15
Speaker 1: In just a moment, I'll ask you the Kloss Quiz
25:17
Speaker 1: Question of the Week. You'll then have 30 minutes from
25:19
Speaker 1: the end of today's program to call the Kloss Financial
25:20
Speaker 1: office right here in Madison at 608-442-5637.
25:23
Speaker 4: 442-5637.
25:24
Speaker 1: If you are the first caller with the correct answer,
25:27
Speaker 1: you'll win this week's prize, which is a $ 25 gift
25:30
Speaker 1: card to Best Buy. This week's Kloss Quiz question of
25:33
Speaker 1: the week is this. True or false? The employer match
25:37
Speaker 1: is the only plan-designated feature that significantly influences employee participation.
25:45
Speaker 1: Is that true or is that false? Telephone number 608-442-5637.
25:49
Speaker 1: First call with correct answer, win that $ 25 gift card
25:52
Speaker 1: to Best Buy. And don't forget as well, that's Kloss
25:55
Speaker 1: Financial's office here in Madison, 608-442-5637. CJ, Aaron, great to
26:01
Speaker 1: see both of you guys. Enjoy this beautiful day.
26:03
Speaker 2: Thanks, Sean. Thanks, Sean.
26:04
Speaker 3: Take care, guys. News comes your way next right here
26:07
Speaker 3: on 1310 WIBA.
26:09
Speaker 1: This is Money in Motion with Kloss Financial Asset Advisors, LLC,
26:13
Speaker 1: a registered investment advisor registered with the SEC.
26:17
Speaker 3: The contents of this show.
26:18
Speaker 1: Are for informational purposes only and should not be considered
26:21
Speaker 1: individual investment advice.
26:23
Speaker 3: Kloss Financial does not offer tax or legal advice.
26:26
Speaker 1: Any opinion offered during the course of this show is
26:29
Speaker 1: the opinion of that particular investment advisor representative and not
26:33
Speaker 1: necessarily the opinion of Kloss Financial.