News

  • NYX MOROS

Updated: 2 days ago


401k Advisor and Fiduciary


Does The International Brotherhood of Electrical Workers District 9 (IBEW) Have A Good Retirement Plan?


When I became a fiduciary, my goal was never to become another financial advisor selling 401k plans for a company that doesn’t care about its plan participants. I wanted to be the financial advisor that takes advising to a new level by only offering financial advice that I personally would accept and put into action in my own life and business. In other words, I believe in the golden rule and do unto my clients what I would have others do unto me. I became an independent fiduciary so I can truly practice this rule without compromising due to corporate requirements.


A trustworthy fiduciary advisor speaks for the employees and what they deserve in their retirement plan. However, even some of the country’s largest organizations are offering sub-par retirement plans because their “trusted plan provider” is more concerned with increasing their client log rather than taking care of the client. This is even more problematic when the client is a large organization/corporation itself that is purchasing a plan for hundreds of employees who also depend on this plan for their retirement. The plan provider’s lack of interest in helping their clients get the most from their retirement plan has a ripple effect on every person that invests in this retirement plan. Every person except the plan provider themselves, that is. As long as no one complains, they keep the client and their paycheck.


I’m not out to collect more paychecks. I truly want to make a positive difference in the lives of the employees at each company I help. I want to see companies of all sizes thrive and truly thriving companies have thriving employees.


That’s why I find the retirement plans currently held by our country’s largest organizations to be so important.

These companies are employing hundreds, sometimes thousands of employees, who depend on their company 401k plans to help them reach their retirement goals. It’s of utmost importance that these retirement plans offer the highest value, but sadly, that’s not the case. For example, let’s take a look at the International Brotherhood of Electrical Workers District 9’s retirement plan.


About IBEW and Their 401k Plan

According to their website, “The IBEW represents approximately 775,000 active members and retirees who work in a wide variety of fields, including utilities, construction, telecommunications, broadcasting, manufacturing, railroads, and government.”


That’s 775,000 members and retirees under a problematic investment plan that produces 40% fewer returns than the plan’s leading competitor. If you were part of the IBEW, how would you feel knowing that your investment in a better mutual fund could be 40% higher? I would demand that IBEW find a new plan sponsor!

Don’t just take my word for this. The information I used for my research is public and I’ll share it right here. IBEW’s retirement plan provider is Principal. The mutual fund Principal provides is identical to a fund offered by their competitor, Vanguard. The plans are the same yet Vanguard’s plan has outperformed Principal’s fund since inception. One reason is that Principal has different classes of their Large Cap Index fund.

IBEW’s investment plan with Principal isn’t just underperforming, it’s loaded with hidden fees. This plan was also created by a life insurance company and their “mutual funds” are not real mutual funds, but they are designed to mimic true mutual funds. Only insurance companies weigh these funds down with hidden fees because their bottom line is sales. The annuities are not registered with the SEC and those annuities are often disguised in the investment menu as mutual funds. It acts like a mutual fund but charges you more and performs less.

How do you know if your retirement plan is full of annuities? If the mutual fund shows separate pooled account after its name, run for the hills. You will not get the most value from this investment.


Employee members of IBEW deserve a mutual fund that offers the most value on their investment. If NYXMoros had the chance to change IBEW to a better mutual fund today, we calculate member savings of around 56 million dollars in fee savings alone over a 10-year span. Fifty-six million dollars. Isn’t that a number worth saving? Isn’t the retirement plans of over 775,000 members worth the most value?


Fiduciary advisors are under a legal obligation to advise in the absolute best interest of their clients. I take this obligation seriously and personally. If you are ready to get the most value for your employees from your company’s retirement plan, you need a plan offered by a trusted fiduciary, not an insurance company or plan provider that doesn't look out for your employees' best interests. NYXMoros is an independent fiduciary with no hidden agendas, hidden fees, or conflicts of interest. Our sole purpose is to truly get companies the most value from their 401k plans. Reach out to us today to learn the truth about your current retirement plan and how we can make it better.


 

Sammy Khalil is a 401k Fiduciary from Nyx Moros, a firm which advises on Company 401k plans. Sammy conducts full analysis by benchmarking retirement plans holistically. This ensures the entire plan is in the plan sponsor's best interest. Being independent means we can be transparent in all advice we provide. For more information please visit www.nyxmoros.com.


0 views