As the last quarter is starting, now is an ideal time to conduct an annual check-up and review on your current Pharmacy’s 401(k) retirement plan. A quick annual look of a few simple things can dramatically impact your ability to retire on your terms. A well-constructed 401(k) will also ensure the viability of your community pharmacy after you have retired. As time moves forward, goals and objectives change as well. It is important to take these changes into account when developing a strategy for retirement.  The following is a list of 3 critical areas that pharmacy owners should review in their 401(k) retirement plan.

1. Benchmarking Fees
   1. What fees are you paying?
   2. What services are you getting for those fees?
   3. How do your fees compare to other advisors?
2. Plan Design
   1. Is your plan setup to reach your goals for retirement?
   2. Does your advisor know what goals you are trying to reach?
   3. Does your current plan maximize savings for the owner, while improving a way to attract, retain, and reward your most valuable employees?
3. New Strategies
   1. Have any laws changed?
   2. Has your current advisor explained what a fiduciary is? If so, did he or she inform you that they are a fiduciary as well?
   3. Has your current advisor showed you any other strategies to improve performance within the 401(k) plan?

These three aspects are critical for a few reasons. First of all, as a plan sponsor of a 401(k) retirement plan, you are fiduciary. It is your legal obligation to act in the best interest of the participants of the plan. Next, the performance of the overall plan can be hindered by hidden fees. It is important to realize exactly who and how people are getting paid to administer the plan. Lastly, and possibly the most important, you want to keep your advisor honest. As of earlier this year, advisors are now required to be fiduciaries on the 401(k) plan along with the plan sponsor. This means, they are now legally obligated to act in your best interest even when it would cause them to make less money. The issue is that not all advisors are letting plan sponsors know this in a clear way.

At Pharmacy401k we are fiduciaries. We embrace our moral and legal obligation to act in the best interest of all our clients. Because we have chosen to exclusively work with only independent community pharmacies across the United States, we offer a complimentary annual review of 401(k) retirement plans for pharmacy owners. Please visit our website at www.pharmacy401k.com or email me at tyler@waypointus.com for more information.