Retirement plan decisions made easy
FAQ
Q: Lots of websites offer investment tools, retirement information, and calculators. What’s different about yours?
A: Most websites provide the same generic information from the 30,000 foot level. Rarely is it easy to understand, nor is it specific to the decision a plan participant may need to make. We provide detailed information most needed by plan participants. We do so in a clear manner that enables people to quickly drill down and find the answers they need, and to make better decisions with more confidence.
Q: My company offers information through my plan provider (Vanguard, Fidelity, etc.). What do you provide that they don’t?
A: Our information is more valuable and easier to use. Although 73 percent of workers saving for retirement used written educational material they received from their employer or employer’s retirement plan provider only 15 percent found it the most helpful according to a 2007 EBRI Retirement Confidence Survey. Our programs are developed with input from a panel of plan participants to provide the information they value most in an easy to use format.
Q: Our provider offers wonderful educational materials so why do we need more?
A: Many educational materials don’t draw in program participants. Consequently, they don’t get used. Our programs aren’t just nicely presented “materials.” We deliver an interactive educational experience designed to engage the participant and increase comprehension in order to support improved decision-making. In addition, our surveys show that many employees are reluctant to go to the provider’s site since they are afraid they will be sold something or begin getting lots of email from the provider.
Q: You provide a lot of information for free. Why should I consider paying for access to the content at the Bronze, Silver or Gold level?
A: The access to more information, calculators, and workbooks enables people to take even greater control of their retirement planning with a better opportunity to increase the return from their plan. At the Gold level, participants benefit from an annual “tune-up” and a quarterly personal 30 minute consult with a retirement specialist to help ensure their plan participation is optimized.
Q: Can some of our employees participate at the Bronze level while others participate at the Silver or Gold level.
A: Yes.
Q: Isn’t increasing the percentage match to employee contributions the best way to improve participation in our retirement plan?
A: Usually not. A recent study examined 401k plans at 15 U.S. firms, ranging in size from 700 to 10,000 employees. Employees who received targeted 401k communications saved two percentage points more of their pay than those who did not. Raising match rates from 25 to 100 percent achieved exactly the same effect – but at considerably higher cost to the employer.
Q: What are the compelling reasons my company should offer a program of information and education such as yours?
A: First, it is a valued employee benefit that helps your employees make better retirement plan decisions. Second, it helps reduce corporate liability by providing an independent source of quality information.
Q: Wasn’t there a recent court decision regarding the liability of companies offering 401k’s to their employees?
A: In February, 2008 the Supreme Court held that employees can sue their employer and the plan provider for mismanagement of their 401k.
Q: Why do you offer incentives as part of your corporate programs? I haven’t seen this before.
A: Our corporate customers want to promote a high level of employee participation in the information and education programs we provide. Incentives generate higher levels of initial interest, and ongoing participation. Higher participation in education programs leads to higher participation in retirement programs.
Q: As a benefits manager, how do I measure the effectiveness of your programs?
A: We provide our corporate customers with a one page quarterly report that summarizes the important metrics needed to ensure the program is providing solid value to the target audience.
Q: As a corporate customer, do I need to host these programs?
A: No. abcInvesting provides turnkey programs. We customize a program to meet your specific needs, co-brand it, and then deliver and maintain the website including periodic update of the list of authorized participants.
Q: I notice a lot of content on 401k programs. What about 403b, 457, etc.?
A: We will add support for other defined contribution plans throughout 2009. Please contact us to discuss your requirements.
Q: Why might your program improve employee retention?
A: It is a proven fact that a happy employee is more likely to stay and the more benefits the employee perceives they are getting the less likely they will be looking. In addition the featured benefit show by a company looking for employees is the 401k.
Q: Why won’t the employee just ask if they are confused or don’t understand?
A: Employees are often embarrassed to ask others since they feel it will show how little they know. They also like to find answers at their own pace in the comfort of their home.
Q: What about the financial tips and reminders you mentioned?
A: We have a “bank” of tips and reminders that will constantly rotate. Such things as: What size of emergency reserve should I have? Or is it time to review my beneficiary designations? We will be adding timely tips as appropriate.
Q: How does the “Free Financial Assessment” work?
A: After answering 10 simple questions we will tell the employee how they are doing as compared to those with similar demographics and give them recommendations of what they should be doing. They will be asked if they would like us to remind them every 90 days to stay on task.
Q: Should I buy the book “The ABC’s of Your 401k”?
A: You can access much of the information online through this website. However, if you are an employer a gift of the book to each employee may be recognized as an additional benefit.
Q: Explain the Chat groups?
A: Chat groups are anonymous groups of individuals that may discuss amongst themselves their financial questions, goals or concerns.
Q: Why do I need a workbook?
A: While not everyone needs one, many people do better with the ability to write things down and see it in their own way.
Q: Explain the “video planning tips”?
A: We will have Certified Financial Planners from around the country record a 1-3 minute video of their favorite financial planning tip.
Q: What is the advantage of my employees talking quarterly to a “retirement specialist”?
A: Some employees have recurring questions about their plan such as how much to invest, where to invest, how to change their investment allocation, what funds to choose, what is a “life style fund”, etc. The specialist will help answer those questions with the result that employees have greater confidence in the direction of their program.
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