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Pooled Employer Plans

Reduce work and maximize fiduciary protection and can also reduce your auditing fee up to $2,000

At George Wealth Management, through a strategic relationship with Securian Financial, we may be able to offer your firm a Pooled Employer Plan (PEP) that can reduce your audit fees and also give your employees access to a Self-Directed Brokerage option in the plan. 

Sponsoring a retirement plan often takes specialized knowledge and adds time-consuming administrative and fiduciary obligations to an employer's already busy workload. However, employers can meet this challenge, stay focused on their business and mitigate fiduciary risk by delegating these responsibilities to retirement professionals.


The Setting Every Community Up for Retirement Enhancement Act passed in 2019 is the first significant retirement plan-related legislation in more than a decade and is intended to help strengthen retirement security across the country. A key provision of the act allows employers to offer a retirement plan through a Pooled Employer Plan (PEP), which should make it easier for small to midsized businesses to set up and administer a plan for their employees.

What is a Pooled Employer Plan (PEP)?

A PEP is a type of retirement vehicle that is maintained as a single plan while allowing multiple unrelated employers to participate, achieving economies of scale typically only attained by larger plans. It operates similar to traditional single-employer retirement programs but with the majority of administrative and fiduciary duties outsourced to the pooled plan provider.

PEP benefits

• More time to focus on business needs • Assurance that fiduciary responsibilities are met and the plan is compliant • Protection of plan assets • Economies of scale allow for better pricing and investment access • Single 5500 and audit for all adopting employers Characteristics of good candidates • Stretched resources with a need to offload work • Risk-averse with a desire to outsource responsibilities and limit liability • Smaller to midsize employers seeking comprehensive services • Limited retirement plan knowledge or experience

Value of Using an Advisor

By working with a financial advisor, you can create and understand an investment strategy, along with the guidance from the advisor to stick with the process. As a result, investors have a better chance of avoiding a panic sale at the bottom of the market, overinvesting at a market top (FOMO), chasing returns, not being properly diversified, and the list goes on. Financial advisors still impact client portfolios, but more than portfolio management comes from behavior management.

Behavior Management and Coaching A 2016 study by Vanguard and many other studies concluded the single factor providing the greatest value-added by advisors is behavioral coaching. In the report and you'll notice portfolio management factors like Rebalancing, keeping expenses low, and asset-allocation have value, but behavioral coaching brings the most.

Active Rebalancing Rebalancing a portfolio regularly can help an investor stay within a risk tolerance zone and prevent an overreaction to market movements, benefits that outweigh rebalancing costs. In addition, regular, systematic Rebalancing has the potential to generate higher returns when taking market momentum into account. For example, Vanguard research estimates that annual systematic Rebalancing can increase the expected portfolio return by up to 0.35% annually, while Russell and Envestnet estimate this annual return improvement to be 0.30% and 0.44%, respectively.

Financial Planning While investments show up in a financial plan, a comprehensive financial plan also addresses insurance, estate, tax, retirement, and college planning. In financial planning, the financial advisor separates himself from the Robo-advisor. It takes the coordination of multiple facets of a client's life to create, implement and monitor a financial plan. And not only does the financial advisor create, implement and monitor the financial plan, but he makes adjustments when life happens–and it will. A financial plan is a fluid document; it will change multiple times over time, sometimes because of choice and sometimes because life throws curveballs. Financial advisors have the experience and expertise to provide value to their clients by adjusting the financial plan to keep them moving forward.

Accountability Not only will a financial advisor keep you accountable with your budget and saving, but a financial advisor will keep you accountable in areas you may want to ignore. A financial advisor will help address risks associated with death or disability–everyone's favorite subjects; ignoring these risks leaves a family open to financial devastation by death or the inability to earn an income due to a disability. Not only is the family subject to financial risks, but it also runs the risk of allowing the legal system to determine guardianship of minors in the event of the loss of both parents. The conversations surrounding these risks are uncomfortable, and without the encouragement of a financial advisor to discuss them, they often remain unaddressed. While portfolio management often brings investors into a financial advisor's office, they won't be why they stay. The true value of a financial advisor comes in a variety of other things that will be different for every individual investor.

 If you would like to investigate your potential options with a Self-Directed Brokerage Account (SDBA) and how you can engage our services, please fill in the below contact form today, and our office will arrange for an introduction conversation.