What kind of questions should I ask the Broker?
Here are a few:
- "I understand that one needs to look at benefits vs. cost, but first let's understand what the low cost options are. What are the three lowest cost stock-based funds you can offer to our employees?"
- "What are all the investment options, including total fees and 1-10 year performance, we can offer through you?"
- "What are the costs to the company and to the employees for your services?"
- "What services differentiate you from other 401k administrators?"
Should I be prepared to propose a different 401k plan service provider prior to meeting the Broker?
This is a great opportunity for me to make improvements to our 401k. I want to know how I can optimize it.
FWIW, we are a small company of about 125 employees.
Assuming the CEO won't be signing a contract at the meeting with Broker, you don't have to have a prior alternative. But you will need an alternative at some point. Gather the needed information (e.g., what is the total amount invested now in the 401k?) and call Vanguard, Fidelity, etc. to ask for their prices and offerings (using questions as above).