We often connect with companies looking for a new provider. When we analyze their current offering, we will frequently find that participation rates amongst the employee base have dramatic room for improvement. This is because there is a misguided belief in the 401(k) industry that user-friendly technology alone will solve our country’s growing retirement crisis (it is believed that more than half of Americans have less than $10,000 saved for retirement). We argue that technology alone will not solve it and may in fact cause further deterioration.
So, what can be done about the lack of retirement preparation? We know ongoing employee education works extremely well for our clients. We view investment education as a part of Shelton Capital Management’s core value of providing authentic client service and absolutely essential for successful results. We care deeply about participation rates and moving the needle toward 100% participation. In order to do this, company employees must understand their options, their retirement goals, and their personal investment risk tolerance. We help educate employees about investing, not simply tell them to check a box, and we have been successful over the years at moving our clients’ participation rates toward our goal of 100%.
How have we done this? Here are some of the ways:
- Live education sessions in our clients’ offices (temporarily video conference calls)
- Dedicated real customer service team based in Denver, CO answering participant questions
- Online education through videos and other resources
- Comprehensive and extensive emails with a multitude of investment tips (archived on our website)
You have taken a good first step in offering a 401(k) plan to your employees. Are they taking advantage of it? How many employees do you have that are not participating in the plan? Do they know their personal risk tolerance to decide between stock and bond funds? Consider doing your part to boost retirement readiness. We are happy to help you. We are the easy, affordable 401(k) plan that’s backed by quality client service and 20+ years of managing retirement plan accounts.