In this blog and the Knockin’ Hard podcast, we’re talking with Investment Advisor partner Jason Park.

Let’s not mince words - what happens if you ignore this problem and just skip?

-       Overpaying in hidden and not-so-hidden fees for 20 years adds up,

-       Employees quietly, or not-so-quietly leaving, and

-       Your employees, and you, retire, potentially, on half the money you could have.

Interest piqued so far? Let’s broaden it. This is relevant to you if you’re a:

1.    company who thinks they’re too small to have a quality 401k… even a company of just 1 employee.

2.    medium to high-earning business owner that wants to see better returns on your accounts, with an advisor that actually advises (Crazy concept, we know).

3.    company with a clunky, barely-managed and even worse-performing 401k, that knows deep down in your gut that there’s a better way.

Oh, and there’s a 4^th criteria you must meet… if you’re sitting there thinking, “No way I’m watching an hour podcast about investing”… the 4^th box you must check is in the first 2 minutes.

Worth it.

I’M TOO SMALL A COMPANY TO OFFER A 401k, RIGHT?

First off, you’re not – even if it’s you, and only you.

Second off, you probably would functionally have been if it were 2016, but now it’s 2026. In that time, we’ve seen the advent of some pretty amazing technical advancements.

A “great”, among these advancements is to bring high-end strategies down to everyday companies, as well as make it easier and quicker to get started. As a result, you can get some awesome strategies at a size never before thought viable.

Viable? Yup… Investment Advisors are a business too.

The changes in tech make it possible for them to do a MUCH better job regardless of company size (hint, hint, this applies to a company of one – solo 401k is a thing. Yes, I’m talking to you Mr. Solopreneur).

Point is this, pay attention to cost, but you can get started at any size – so long as you meet the hinted-at qualification in the first two minutes of our podcast. (Watch it! It’s also entertaining – like TikTok worthy.)

Want to understand what makes us special? Read the next two sections.

Aaaaand, if you’ve gotten this far and didn’t watch the first 2 minutes, we’re guessing you’re not going to. You’ve got to be a good person with a play-nice-in-the-sandbox team. If you’re a mean, crummy person/company, we’ll skip.

Otherwise, if you’re good-people, we want to work with you!

I’M INTERESTED IN SEEING BETTER RETURNS ON MY INVESTMENT ACCOUNTS / I WANT TO GET STARTED INVESTING!

The bottom line for investments, retirement planning and advisors, comes down to returns that translate into spendable money in retirement, or in life. Key word: spendable.

This point is repeated and a central point from Jason Park.

It’s ALSO about not losing returns that are naturally achieved in the market due to a lazy Investment Advisor - or exorbitant fees.

These are the 5 investing/retirement fundamentals you should expect:

1.    Fees from your broker/advisor range between 0.5% and 1.5% a year – definitely less depending on amount of money you’re coming in with and what you’re expecting.

Steer clear of fees that are based on selling or buying – these can get up to 5 or 6% per transaction!

Think incentives - if the broker, or even the “investment advisor”, makes a commission by moving your money, they’re going to move your money.

2.    You should look for strategies that generally mirror the market.

Why?

The simple fact is VERY few advisors out-earn the market – estimates vary widely, but we’re talking less than 10%, some say only 2% can, and do.

If they say they do, make them prove it. We’re happy to review what they say is “better”.

3.    Everyone does Asset Allocation based on your willingness to experience risk and the amount of time before you actually need the money. That’s a given. What’s not common - do they pair and compare that allocation with what will trigger the least amount of taxes over your entire lifetime?

This is a whole world in and of itself, that can make a MAJOR difference in what you can actually spend in retirement.

The question to ask, “What is your strategy around Asset Location?” If they correct you and say, “Do you mean Asset Allocation?” – strong sign they likely don’t do it.  

4.    Is it easy to use their systems or app?

Does your advisor incorporate an app at all? If you’re still receiving a paper or PDF monthly statement, run.

Ok, not literally “run”…

But the point is, it’s a big red flag that they’re possibly outdated by years. And the speed of progress is only accelerating exponentially. (AI – need I say more)

The not-so-hidden message here, if they haven’t even embracing an app, what amount of “behind” are they on tech-first strategies to manage your personal or company portfolio?

If they aren’t giving you an app - which is “soooo 2008” – is that the era where they’re stuck? (Don’t forget, some companies still don’t have a website – the past is an easy place to get stuck.)

You’ll want an app to easily contribute, and to have clear visibility into what’s happening with your account and your advisor.

5.    If you’ve made it this far, watch the interview with Jason. One, It’s entertaining and two, at this stage it comes down to you and the advisor.

Do you like the person?

Do they take the time to get to know you? You’re entering into the definition of a long-term relationship.

WHAT SHOULD YOU BE GETTING FROM THE ADVISOR OF YOUR 401k?

Well, all of the above.

The fact is that your company is made up of individuals. Yes, a 401k is an expectation your high-performing employees expect. In a lot of cases, it’s a requirement.

Regardless, let’s take a step back and remember that you, like your employees, are making sure to look out for Number-One first. Yes, they should be looking out for your company, but it’s hard to do that if they aren’t sure they’re on the right track.

You get to provide that track.

If your benefits are crummy, they don’t stick to you and your company, they’re repelled.

We’re not even talking about matching contributions. If you can give them access to a significantly better advisor and system, they more want to stay. It’s another hashmark in the pro-column of your employee’s stay/leave equation.

And all that comes down to individual, employee to employee, application of the above 5 investing/retirement fundamentals. The great thing, this isn’t more work for you. It’s a LOT more work – just not for you.

The point is, it makes a huge difference.

Statistically, according to a study by Vanguard, these actions (among the other’s covered in the study – to which Jason’s team does) result in an average 3% higher return year after year.

3% not sounding sexy enough to you?

Realize 3% can majorly impact your retirement nest egg.

In a math sense, a 3% increase in return, after costs, compounded, could double your account value over a 24-year period.

(Understand why ‘24 years’ specifically? Look up Rule of 72.)

As an example, if your hypothetical employee Sarah starts investing late, at age 41, she would be 65 after 24 years.

Without 3%, she might have $500,000.

With the extra 3%, she could be looking at $1,000,000 instead.

Not going to be a luxurious retirement at 1 million, but it’s much better than half.

The point is, these bits and pieces add up.

What do they add up to?

Employees that are happier, more productive and see you are a valuable part of their long-term survival.

We want to make your company stickier and your own personal 401k / IRA richer.

AND WE LEAVE YOU WITH THIS:

In closing, you’ve made it to the end!

It’s a lot to digest. Let’s face it, some of you won’t make a change. Some of you are justifiably busy.

But what happens if you continue the can-kicking? What happens down the road if you keep leaning heavy on the “too busy” crutch?

How much are those not-so-hidden fees going to cost you over the next 20 years?

Totally fine if you look at it as a pat-on-the-back contribution to the Advisor Charitable Fund - keep going.

Maybe you don’t mind employees quietly jumping from you to your competitor.

Your industry secrets aren’t THAT important, are they?

Or heck, maybe you WANT less money in retirement – stick it to the future wealthy-you!

Half as much is better than nothing - the other half will go to good use! Uncle Sam and the aforementioned Advisors will spend it very well.

No?

We didn’t think so.

Click the link to schedule a call - we’ll break down how we can shave cost and potentially improve returns.

Disclaimer:

This blog is intended for informational purposes only and does not constitute financial, legal, or tax advice. Nothing contained herein should be interpreted as a recommendation, solicitation, or offer to buy or sell any financial product or to engage in any investment strategy.

Reading this content does not create a client, advisory, or fiduciary relationship. Any services referenced are provided only pursuant to a formal written agreement.

The information presented is general in nature and may not be suitable for your specific situation. You are responsible for evaluating your own financial circumstances and should consult with a qualified professional before making any financial decisions.

Any examples or illustrations are hypothetical and for demonstration purposes only. They do not predict or guarantee future results. Past performance is not indicative of future performance.

References to potential improvements in returns, cost savings, or outcomes are illustrative and will vary based on individual circumstances, market conditions, and implementation.

To the extent this content discusses retirement plans or employer-sponsored benefits, it is not intended to provide fiduciary advice under ERISA.

Product features, benefits, and availability may be subject to limitations, exclusions, and change.