For many years, my wife didn’t want to join Costco because she thought that overshopping was genetic on my side when she remembers my parent’s Costco. My wife was concerned I would buy stuff we didn’t need. Long story short, we re-joined and I don’t buy stuff we don’t need.
As a plan sponsor, there are retirement plan providers who will sell you stuff that you don’t need. There are a lot of great services out there that might not be even a good fit because you’re already doing that. For example, if you have a great handle on your plan, you may not need an ERISA 3(16) or ERISA 3(38) fiduciary. These are great services, but they do cost money and are a waste if they’re not needed.
For every service or bell and whistle that a retirement plan provider is trying to sell you, it’s important to understand what they’re proposed to give you, what the costs are, and most importantly, is it really necessary? Often times, you’ll find out that it isn’t. Don’t buy for your plan what you don’t need.
