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Establishing a 401(k) Plan for Your Employees? Here's How a Financial Advisor Can Help! Thumbnail

Establishing a 401(k) Plan for Your Employees? Here's How a Financial Advisor Can Help!

If you're considering offering an employer-sponsored retirement plan, a 401(k) is a popular option for small business and large corporations alike you can use.

Having an employer-sponsored 401(k) can be a boost of morale and incentive for employees to stay at the company.


In 2020 there were about 600,000 401(k) retirement plans with over 60 million active participants.1 Offering a retirement plan can be an effective tool in attracting talent and keeping employee satisfaction high. Here’s what you need to know about the role a financial advisor plays when it comes to building and maintaining a 401(k) plan.

An Advisor Can Help...

Identify & Align Your Business’s Goals and Needs

Each business is different, and it's likely that you and your employees may have unique goals and needs. So how do you choose a 401(k) plan that aligns with those goals and needs? An experienced advisor can go over what you want to achieve and help you choose the right plan.

Compare 401(k) Providers for Cost and Value

Overwhelmed by the various options when it comes to 401(k) providers? A financial advisor can provide a breakdown of costs and discuss the value of various providers to help you find a good fit.

Stay Up-to-Date on Legislative Changes

As government policy changes, retirement plan rules can be affected. While you’re busy running your business, your financial advisor will let you know when changes are made to retirement plan rules that could affect your plan or responsibilities as a sponsor.

Educate Participants & Encourage Participation

It’s not just about creating the 401(k) plan, you want your employees to participate as well. By holding information sessions for your employees, an advisor can answer their questions, encourage participation and review the benefits.

Evaluate and Monitor Investments

A financial advisor can guide you when it comes to making informed decisions about your business, your retirement plan and its investments. He or she will have a monitoring process with periodic check-ins to help keep you up-to-date.

Offer Administrative Support

The administrative duties involved with maintaining an employer-sponsored retirement plan can be daunting for small business owners. If you find yourself with limited time and resources to put towards these administrative duties, an advisor can help.

An advisor can guide you, support your needs as a plan sponsor and help align your plan with your business’s needs. If you feel that you need help in any of the areas mentioned above, you may benefit from the additional expertise a financial advisor provides.

A 401(k) plan offers benefits that will help you not only attract but keep good employees at your company. For help establishing and maintaining a retirement plan that will put you at ease and confirm that you’re checking all the boxes, feel free to contact our team, California Retirement Advisors, at cradvisors.com or call at 888-643-7472.

By Christian Cordoba
Founder, California Retirement Advisors

  1. https://www.ici.org/faqs/faq/401k/faqs_401k
Investment advisory services offered through Mutual Advisors, LLC DBA California Retirement Advisors, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. CA Insurance license #0B09076. This content is developed from sources believed to be providing accurate information and provided by California Retirement Advisors. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. California Retirement Advisors, nor any of its members, are tax accountants or legal attorneys and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.