| For a Cash Balance Plan to run smoothly, plan sponsors must work with an advisor who understands the ebb and flow of the financial markets. The advisor can help plan sponsors make informed and wise decisions regarding the investments for a Cash Balance Plan.
In particular, an Investment Advisor who is a co-fiduciary to the plan and "sits on the same side of the table" as the plan sponsor can most effectively help navigate the unpredictable waters of the market.
No one can guarantee what the markets will do, but through diversification and educated investment choices, one can minimize financial surprises. An Investment Advisor for a Cash Balance Plan should make sure that the plan sponsor understands the risks and the trade-offs involved with the various investment options.
As the market dynamics change, a good investment advisor stays in close contact with plan sponsors and the pension professionals who design and administer the plans to make sure that the long-term obligations inherent in a Cash Balance Plan can be met.
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