Beacon Financial Services Exposes Retirement Industry Secrets In Scorching White Paper "The Hidden Fee Manifesto"
Greater Philadelphia firm shines a light on 401(k) fee arrangements and the plan sponsor's fiduciary duty to guard participants against excessive fees.
WAYNE, Pa., Nov. 14, 2023 /PRNewswire/ -- Beacon Financial Services, a corporate retirement plan and personal wealth advisory firm based in Wayne, Pennsylvania, today announces the release of its scorching new white paper, The Hidden Fee Manifesto: Exposing some of The Biggest Secrets of the 401(k) Industry. This white paper guides plan sponsors through the nuances of 401(k) fees and the risk and liability they assume if left unmonitored.
In 2022, 40% of excessive fee lawsuits filed related to plans with less than $1 billion in assets, as reported by JD Supra. This highlights the urgency for 401(k) plan sponsors of all sizes to be vigilant and proactive.
Furthermore, on October 31, 2023, President Joe Biden proposed new measures aimed at protecting Americans' retirement savings from hidden and excessive fees. "America's families spend a lifetime saving so they can retire with dignity. But junk fees are chipping away at their savings…" according to a statement from the White House, signaling increased oversight and scrutiny for fiduciaries tasked with managing these plans.
"401(k) plans are structured to compensate associated vendors and intermediaries for the services provided to the plan. And in fairness, they do deserve fair compensation for their vital contributions to the management and administration of the retirement plan," said Brian Menickella, Managing Partner of Beacon Financial Services and retirement contributor at Forbes. "But when there is a lack of transparency on how these vendors are compensated, plan participants can be subjected to unnecessary or unreasonable fees hidden within the plan's investments. These 'junk fees,' as President Biden refers to them, leave plan participants with less money going toward their retirement savings and plan sponsors open to potential litigation."
The Hidden Fee Manifesto places a particular emphasis on revenue sharing, a practice described as a deliberate overcharge at the fund level, which is shared with other vendors to help pay for a plan's administration costs or financial advisor broker commissions. It calls on plan sponsors to have a third-party fiduciary perform a fee analysis, which typically entails a thorough review of the funds' prospectuses and expense ratios, benchmarking them against other funds in their peer group to determine reasonableness based on cost and performance.
Plan sponsors, to find out if your 401(k) plan contains hidden fees, please visit https://advisors.beaconfinserv.com/acton/media/44328/pr1123-does-my-401k-plan-contain-hidden-fees.
And to claim your exclusive copy of The Hidden Fee Manifesto: Exposing some of The Biggest Secrets of the 401(k) Industry from Beacon Financial Services, visit https://advisors.beaconfinserv.com/acton/media/44328/pr1123-hidden-fee-manifesto.
About Beacon Financial Services: Beacon Financial Services is a corporate retirement plan and personal wealth advisory firm based out of Wayne, PA. Established in 1996, Beacon has over a quarter century of experience helping employers and their employees make the most of their retirement plan offering. Their CEFEX-certified Retirement Plan Investment Fiduciary Advisors serve over 70 retirement plans in the region and manage nearly $300 Million in retirement plan assets. To learn more, visit beaconfinancialservices.com.
Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements and you should consult your attorney or tax advisor for guidance on your specific situation.
The advisors at Beacon Financial Services have attained Investment Advisor Representative Certification from the Centre for Fiduciary Excellence (CEFEX) for RIA services within the LPL Financial Retirement Plan Consulting Program (RPCP). CEFEX and LPL Financial are separate entities.
Contact: Marc Menickella
Beacon Financial Services
(610) 265-4012 ext. 228
[email protected]
SOURCE Beacon Financial Services
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