NOT ALL PROVIDERS ARE CREATED EQUAL
After an evaluation of the plan design considerations is completed, Townsend Financial finds the 401(k) plan provider able to deliver services aligned to the needs of the plan and the participants. Townsend Financial's recommendations are not biased by proprietary offerings or compensation.
Plan Sponsor Online Access
Fee transparency and amounts paid have come into the spotlight lately. In the past, many of the fees were embedded within “wrap fees” or “revenue sharing”. Getting to the bottom of exactly how much is being paid and to who can be a difficult task depending on how the plan was structured. This led many participants and even some sponsors to believe they were getting their 401(k) plan for free. This is obviously not the case because the provider needs to get paid for their services. Townsend Financial evaluates the providers on their transparency of fees to be sure the participants and sponsors know how much they are paying and who they are paying it to.
The amount of the fee being paid for the service provided is also evaluated. This means that the lowest cost provider may not be recommended if the provider is not able to support the plan or provide the features the plan needs. Townsend Financial believe any fee paid without the services being provided in return is too high.