Could your 401k Win the Kentucky Derby?

By MARK R. FOLGMANN

I’ve spent the last nine articles discussing a lot of problems with 401(k)s, which may lead you to believe I don’t like them. The truth of the matter is I love them and spend the majority of my working hours helping companies fix their plans.

I was on vacation last week in Asheville, North Carolina watching the Kentucky Derby and was amazed when “Mine that Bird” came from last place and blew by the field like they were standing still to win by six lengths.

I thought to myself wow that is what a great 401(k) should look like. It would leave all other 401(k)s in its dust especially as we recover from this horrible downturn in the economy.

Most 401(k)s look like those horses that we thought were standing still. They have a 300 lb. jockey, no regular training program and suffer from malnutrition. We know real quickly when a racehorse is out of shape because they race periodically, not so with your retirement plan. We tend to close our eyes and hope we will be all right at the finish line (age 65). Our race tends to last 30 or 40 years.

I believe the 401(k) is the absolute best vehicle to assure America’s retirement, but we must race now and then. We must review fees, conflicts of interest and make sure our fiduciaries are truly acting in our best interest. If we keep our 401(k) in top shape, we will be in position to win the race.

I am extremely proud to announce on April 28 my firm, Ark Advisors LLC, was endorsed by Matthew Hutcheson as one of only 17 firms in the United States that truly embraces a “Participant First” approach to delivering retirement plan services.

Matt in my opinion is the foremost expert with regard to 401(k) plans and fiduciary responsibility in the nation. He is currently working hand in hand with both the Department of Labor and Congress to identify fiduciary firms and solve the country’s retirement dilemma.

Matt was the key figure within the Bloomberg Report on hidden fees and recently participated in both the “60 Minutes” and “CBS Evening News” segments covering the same subject. We were required to go through a rigorous screening process before being selected as one of the nation’s select few who strive to create the best possible retirement outcomes for employees.



Mark Folgmann is president of Ark Advisors LLC in Traverse City. He has more than 25 years of experience within the financial service industry. This is the 10th in a series of columns discussing topics related to 401(k) planning. To contact Folgmann, call (231) 668-4118 or mark@arkadvisor.com.