Help for Employers

FAQ

Q. Why should I be concerned about my employees' retirement readiness?

A: You have undoubtedly spent a lot of time, effort and expense developing a great retirement plan for your employees. It is imperative to take the next steps to give them the best practical chance at success. Study after study has shown that average investors consistently and dramatically underperform common market indices. Why is this? Quite simply, most investors do not have the time or knowledge required to optimally manage their retirement accounts, they need additional tools to guide them.

Q: Do most firms who offer management services accept fiduciary responsibility for their actions?

A: In our experience, most firms go to great lengths to avoid the title of “fiduciary” in virtually all aspects of their operations. They do this by limiting their services to providing basic advice and generic guidance to account holders. StraightLine, however, has embraced the role of a fiduciary since our inception – we always do what’s right and what’s best for each client. We simply see no other way to operate.

Q: What about fiduciary liability to my company?

A: There have been numerous laws, agency guidelines, and case law precedents issued over the last few years – most notably the Pension Protection Act of 2006 – that have significantly clarified the issues surrounding fiduciary liability. This has helped plan sponsors better understand their responsibilities, as well as provide a framework to shift aspects of their fiduciary liability to outside providers such as StraightLine. Each plan sponsor’s situation remains unique however, and any partnership with a service provider must be customized to maintain the highest level of fiduciary protection.

Q: My plan is unique; can StraightLine’s services be customized to meet our needs?

A: Yes. We realize that every employer is unique and we must tailor our programs to your specific needs. We will be happy to sit down with you and discuss ways to offer our service to your employees.

Q: Can we pick and choose which of StraightLine’s services to offer?

A: Yes. Our service offerings can be customized to fit your unique needs.

Q: Are you trying to sell me a new retirement plan?

A: No. StraightLine does not sell 401(k), 403(b) or 457 plans. Our objective is to enhance your employees’ retirement readiness through education and account management options.

Q: Can you help us evaluate the investment options currently in our plan?

A: Yes. Since StraightLine is both independent and unbiased, we can provide you with an objective review of your current plan offerings or any others you may be considering.

Q: Do all of my employees have to use StraightLine?

A: No. Your employees individually choose whether they want to retain StraightLine to manage their plan investments.

Q: What is personal retirement account management?

A: StraightLine provides 401(k), 403(b) and 457 investment management for plan participants who prefer having an absolutely independent third-party research team manage their investments within your plan. Keep in mind, we don’t just give advice – we actually manage the participant’s investments – making changes to allocations as needed throughout the year as economic conditions dictate.

Q: How are you different from other Financial Advisors?

A: Many financial advisors certainly offer valuable advice, but rarely do they focus on investment accounts within an existing 401(k), 403(b) or 457 retirement plan. If and when they do, they are often a representative of the plan’s provider or are connected to the investment options within the plan.

StraightLine has none of the biases or potential conflicts of interest these connections create as we are independent of all fees and investment revenue generated within a plan. All of StraightLine’s investment decisions are solely in the best interest of our clients and not for the benefit of ourselves, any plan provider or mutual fund.

Q: What is the annual fee for participant account management?

A: The annual fee is 0.5% of your account value, up to a maximum annual fee of $1200 (for an account over $240,000). There are no other fees or commissions paid to StraightLine by anyone in connection with this service.

Q: How do you make changes to my employee's portfolio?

A: When electing to use our management service, your employee shares account access with us for the limited and secure purpose of repositioning the account. Increasingly, this can be accomplished without obtaining individual login credentials.

Q: If my employees need to share their login credentials with StraightLine, is it safe?

A: The security and confidentiality of our clients’ account information is our highest priority. We employ strict internal and external controls and procedures to secure all information. For more details, please click here to review our Privacy Policy.

Q: How often do you make changes to portfolios?

A: Our research team continually reviews market conditions, world events, mutual fund activity and other factors that affect the value of investment accounts. Based on that information, we typically make two to three proactive changes to each portfolio per year as determined by the research team.

We are not market timers. In fact, we feel that frequent trading in an account can sometimes be detrimental. Sometimes market trends need to evolve over longer periods of time than many programs allow, thus minimizing the positive impacts in an investor’s portfolio.

Q: How do you communicate with my employees?

A: We use a combination of e-mail, phone calls, newsletters and postal mail to communicate with our clients. Every time a change is made to their account allocations we will notify them.

Q: Can retirees enrolled in the plan use this service as well?

A: Yes. The fee structure and approach is exactly the same for retirees and current employees.

Learn More About

Revolutionize Your Retirement Programs

Employee Management Services

Employee Education

Common Objections

FAQ

Independence and Research

Learn how StraightLine can be of service to you

Let us help you establish your organization as a leader in providing for the financial security of your employees. StraightLine also provides professional account management for individuals with 401(k), 403(b) and 457 retirement accounts. We manage the account for you – making changes to allocations as needed. We also offer an advice-only management option. Please let us know your needs and we’ll get right back to you and provide you with “straight” answers to your questions.

Corporate Headquarters: 165 Kirts Blvd., Suite 100 • Troy, MI 48084
Local / 248.269.8366 • Toll Free / 877.EDU.403b • Email: info@straightline.com