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Evensky & Katz Enters 401K Market
Evensky & Katz, a Coral Gables based wealth management firm, has expanded its fiduciary investment advisory services to 401K Plan Trustees.
Coral Gables, FL (PRWEB) July 9, 2006 -- Evensky & Katz Wealth Management, a Coral Gables, Florida, financial planning firm overseeing in excess of $500 million of assets, has teamed up with Fidelity Investments and the Charlotte, N.C.-based third-party administrator The Newport Group to enter the 401(k) market.
Harold Evensky, CFP, AIF, Chairman, said there is a need for independent fiduciary advice, as many wire house and insurance 401K offerings disavow that role. Evensky was initially inspired to look into clients' 401(k) plans after completing a fiduciary certification program offered by the Foundation For Fiduciary Studies. The program motivated Evensky to revisit entrepreneur clients with 401K plans and review their fiduciary liability.
"We always assumed that 401K Trustees and firm had no liability because the participants were picking their own investments," he said. "During the program we learned that Trustees desiring protection under ERISA Section 404(c) were required to meet numerous criteria. After a review of our clients’ plans, we realized that many do not meet these requirements and that our clients were unaware of their personal financial exposure."
Evensky & Katz will provide two fee based services for Plan Trustees
| | - A Plan Fiduciary Review by the firm’s Accredited Investment Fiduciaries (AIF) based on the Foundation for Fiduciary’s principal "Uniform Fiduciary Standards of Care," and the twenty-seven practices that define a prudent process for investment fiduciaries.
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| | - Independent co-fiduciary investment advisory services to guide the Plan Trustees in the design and oversight of the Plan’s investment options. This includes professionally selected investment alternatives and risk based, model portfolio alternatives, ongoing active portfolio design including monitoring, rebalancing and adjustments to model portfolios, ongoing manager due diligence.
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Evensky & Katz invested hundreds of millions of clients' financial planning assets with Fidelity over the past decade before selecting the brokerage giant as its 401K plan custodian. Evensky said the arrangement does not require his firm to use Fidelity's funds in its plans in order to receive preferential pricing. The Newport Group, a leading retirement services firm, a frequent winner of "Best in Class" honors by Plan sponsor magazine, was initially recommended by Fidelity.
Evensky & Katz primary 401(k) plans market will range from $2 million to $50 million. Plan investments managed by the firm will use institutional share classes of funds as a means of containing plan costs. Evensky & Katz will adhere to a fee-based model paid directly by the sponsor or deducted from plan assets on a percentage basis.
For additional information please contact:
Harold Evensky, CFP®, AIF®
(305) 448-8882 # 235
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