Investment and Administration Advice

[Guest wildcat]

My company currently has a profit sharing plan of around 100 participants with an investment advisor for the investments and a TPA for the administration. We are looking to swithch TPAs and are not married to the investment advisor so we want to consider all options. We have spoken to other TPAs just to change that part of it and to a life insurance company that offers an annuity for the investments and they also provide the administration services. I know there are pros and cons to using an annuity so we want to look at all options. Any other reocommendations?

[JanetM]

It looks like you will be needing to have the plan audited in the future due to head count. What ever you do be cognizant that the TPA will make or break the audit and also impact the cost of the audit if they or employer can't provide the necessary information.

One thing you didn't mention was the 100 participants, what do they want and need? Target date funds, hand holding, contstant reassurance investing is a good idea, a swift kick to motive them.............................

[Guest wildcat]

We have had the plan audited for the past couple of years so we are taking that into account.

Regarding the participants, they are not involved in the investments, just the trustees of the plan so that is something we can consider changing as well. I am just still trying to figure out all the different options available.

[Kevin C]

If you are happy with the auditors you are using, you can ask them if they will recommend any TPA's.

We get most of our new business from referrals by existing clients. If you have contacts at other firms, they might be able to recommend someone, or suggest someone to avoid.

[K2retire]

As you are comparing options, be sure to get all of the information about how these companies are paid so that you have an apples to apples comparison. Mutual fund companies and insurance companies are likely to tell you that their services are free and neglect to mention the sales charges associated with their products.