Oh what Fun it is... to have a conversation on 401(k)? For the Holiday!?!?!

Holiday parties... lots of them! Here in the Chesapeake Region, we are in the middle of the Holiday season and my belt size is beginning to show it! Good food, drink, and of course great friends contribute to some great times.

While in Annapolis Md. a couple of evenings ago, I was able to host some of my leaders with the Chesapeake Regional Chapter of the Maryland Tech Council for a night out. For those who may not know, the CRC (Chesapeake Regional Chapter) is building a tech community to foster partnerships, connections, and support for tech companies. Our leaders spend a lot of time and effort helping to create this community and I thought they deserved some time off to enjoy the holiday.

Little did we know that we picked one of the busiest evenings in Annapolis, MD... Midnight Madness! Needless to say, every venue was packed but our spirits were high!

As we finally got settled at an establishment that offered scenic views of the oldest, working capitol building in the United States, we got down to the business of catching up with one another.

While sharing ideas and accomplishments, our conversations moved towards year-end clean up and projects. There was no lacking in how much there was to finish before the years end. But the end was in sight...

I was asked about what I had for my year-end tasks. There is quite a list... from continuing education, required minimum distributions, tax-loss strategies, and much more. But the conversation moved to 401(k).

My friend who is the human resources director at a SAS cyber company near Washington DC had questions about what he should do for their company 401(k).

There are a couple of things to consider with your 401(k) plan as we close out the year.

First, a compliance check might be a good thing to check on. A comprehensive review to ensure the company's 401(k) plan complies with regulatory requirements is a must-do. Often the record keeper (who may or may not also be the TPA or Third-Party Administrator) will be able to assist in supplying a report or a compliance checklist.

Next, you may want to assess employee engagement. It is necessary to promote awareness among employees regarding 401(k) benefits and contribution limits. I might argue that this should be an ongoing, year-round project.

If you're in HR (many readers of On Pointe 401(k) are in human resources) you might organize workshops, webinars, or personalized sessions to educate your employees. Consistently remind them of plan features, investment options, and the importance of retirement planning. Your financial advisor may be able to help you develop a program. This also includes contribution deadlines...

For fiduciary duties, it is good to review investment options as well as your investment policy statement. Collaborate with the plan administrator to evaluate the current investment lineup. You may want to consider adding a 3(38) or other fiduciary services to not only keep you compliant but also to stay on top of an ever-changing investment (and legal) landscape.

Of course, most of these items should have already been in place. So, we turned our conversation towards the new year… 2024!

To address employee engagement, an education program can be developed. With the help of your 401(k) financial advisor, you can develop a structured financial wellness program. This program can be tailored to various employee demographics and needs. The goal of Financial Wellness programs is to encourage retirement planning through informative sessions and tools, reinforcing the importance of long-term savings.

Here's something to consider in 2024... Auto-Enrollment and Escalation. New retirement laws are encouraging auto-enrollment plans and there may be tax credits for implementing them. This could significantly enhance overall participation and savings rates... ultimately creating retirement-healthy employees.

If you're in HR, you likely know the time and energy that is committed to administering a plan. You might consider upgrading your record-keeper to take advantage of new tech. Often new technological enhancements will offer reduced administration time and energy. This very well be more of a value add than lopping of a couple of percentage points in costs. Some technological advancements to streamline plan administration include mobile apps, interactive tools for investment guidance, and online retirement planning calculators for employees.

While I did not get a chance to finish this list of 401(k) enhancement ideas, I told him to read On Pointe 401(k) as well as be on the lookout for an Alpha Pointe Capital webinar in the first few weeks of 2024. We'll be discussing all kinds of ways to improve the 401(k) experience.

Enjoy the Holidays!

James S. Gibbons

CPFA Alpha Pointe Capital-Founder/Wealth Manager

Connect on LinkedIn James S. Gibbons

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About the Author

Early Influence and Start

Jim Gibbons was inspired by his father’s advice during the 1987 stock market crash, leading him to begin his career as a financial advisor in 1998.

Wealth Planning Philosophy

Envisioning your future wealth, creating your plan for your wealth, and having confidence in your plan are the foundations of James’s wealth planning philosophy.

Investing Principles

James established his investment philosophy early in his career, “Invest in Strength,” concepts are based on the basic economic laws of supply and demand principles.

Alpha Pointe Capital

In 2012, Jim co-founded Alpha Pointe Capital, focusing on Wealth Management and 401(k) services for entrepreneurs and leaders in emerging industries. Supporting Emerging Industries Jim actively supports entrepreneurial ecosystems through councils, trade organizations, and advocacy groups, including leadership positions in the Maryland Tech Council and the National Cannabis Industry Association.

Community Involvement

Jim dedicates his time to various community initiatives, supporting veterans, hospitals, environmental groups, and other charities.

James S. Gibbons CPFA

Alpha Pointe Capital-Founder/Wealth Manager

[email protected]

www.alphapointecap.com

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Disclosures

Registered Representative of Thurston Springer Financial and Investment Advisor Representative of Thurston Springer Advisors. Securities are offered through Thurston Springer Financial, Member FINRA, and SIPC. Advisory services are offered through Thurston Springer Advisors, an SEC Registered Investment Advisor. Alpha Pointe Capital is a DBA of Thurston Springer Financial and Thurston Springer Advisors.