How Healthy Is Your 401(k)?

Many 401(k) Plans have an endless array of bells and whistles yet people don't join the Plan, don't contribute enough, or don't invest their money properly. Instead of measuring the health of a Plan by the features it offers, many of which aren't used by most employees, we have developed the Triple 90 Yardstick. The Triple 90 Yardstick is a unique and very effective way to measure the health of a 401(k) Plan. It doesn't focus on Plan provisions or features; instead, it simply measures employee behavior. Our Yardstick will let you see past the bells and whistles to determine if the Plan is capable of providing a meaningful benefit for career employees.

The Triple 90 Yardstick takes three measurements:

• Are 90% of employees contributing to the Plan?
• Is 90% of the employer match "captured" by employees?
• Are 90% of the investments achieving professional (market) results?

If a Plan measures up against this Yardstick, it is almost certain that even low-wage Plan participants can achieve an adequate replacement income in retirement.

What if your Plan doesn't measure up? Check out our 401(k) Solutions, or Contact Us for a professional consultation.