Some characteristics of a successful retirement program are an active investment committee, diversified options, low expenses and accessible investment advice. At the foundation of a successful plan is an expanded menu of investment choices, suggests U.S. News & World Report.
A successful retirement program includes an investment committee focused on the program’s progress. The committee should include an owner and members of senior management, who determine the investment menu and manage plan design issues. An effective program provides a diverse set of investment options which are monitored according to the investment policy statement. The program can include balanced options and target-date funds to enable specific allocation of assets. The sponsor of a successful retirement program maintains knowledge of the program’s fees – associated with investments, record keeping and administration – and ensures the expenses are reasonable according to the size of the account. Positive programs provide participants with access to expert advice from unbiased sources, recommends U.S. News & World Report.
An employer’s provided retirement programs are utilized to attain top employees. Happy retirees owe little to nothing on a mortgage, and have multiple sources of retirement income – such as investment income, Social Security, 401(k)s and IRAs, pensions from former jobs, and profits from the sale of a business. Even with an equal total of assets, a higher number of income sources provide more confidence, according to Inc.