401k Investing with RIA

by **.199** » Mon Apr 13, 2009 12:17 pm

Good day - I'm considering a transition to fee-only firm, but struggling with how RIA firms offer 401k plans to their clients on a fee-basis. Today, I provide 401k plans direct with fund providers like American Funds...but their plans work on commission based trailer. Wondering how fee-only firms (RIA) offer 401k plans to their small business clients?

Thanks

Rick

by **Vig Oren** » Mon Apr 13, 2009 2:09 pm

Rick, anything here for you:

http://www.financial-planning.com/forums/viewtopic.php?f=240831&topic=2364534

The small companies clients that I deal with can't chose their own 401(k) funds selection. In such cases it would not be fair to charge hi hourly fees and charging % of AUM would be, sheer swinely.

by **Leggerli** » Wed Apr 15, 2009 4:34 pm

Rick -

Charles Schwab works with fee only advisors. The Advisor sets up the plan though various TPA's that we are aligned with in a program called TPA Source. The TPA does the administration and the advisor can charge a fee for selection and oversite of the underlying funds. The fees are deducted the same way that plan administration fees are deducted. The advisor fee that you negotiate with the plan gets paid into a fee account in your name. You would use no-load or waived load funds and you would have to be registered as an RIA.

Hope that helps -

Leslie E

Schwab Institutional

www.schwabinstitutional.com

by **nd73** » Wed Apr 15, 2009 8:56 pm

Check out http://www.expertplan.com
Low cost, very large list of available investments and very easy to work with.

Tony Laughman