ERISA 3(38) Investment Manager

Most 401(k) plans hire an advisor to facilitate making decisions due to the substantial liability and knowledge required. What plan sponsors don’t always know is there is a significant difference in both service and liability based on the advisor they choose. Most advisors simply provide suggestions to plan sponsors leaving the final decision and liability with the plan.

An ERISA 3(38) investment manager is different in that they sign on as a fiduciary to the plan in writing. By doing this, the plan fiduciaries can transfer the work and liability associated with selection and monitoring of a plan’s investments to the investment manager. Perhaps most importantly the investment manager is legally obligated to act in the best interest of the plan.

ERISA 3(38) Investment chart

As a Registered Investment Advisor (RIA) and Fee-Only plan advisor, Financial Plan, Inc. will sign on as an ERISA 3(38) investment manager to the plans we advise.