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Open enrollment already has your employees' attention. They're reviewing medical plans, comparing premiums, and thinking about what their families need next year. It's a natural moment to invite them to spend a few extra minutes on a benefit that's easy to overlook: the company retirement plan.

It's part of the package you provide

Your Retirement Plan isn't a side feature. It's a core part of the benefits you offer, and it reflects a real investment: the match, the plan administration, the investment menu, and the oversight behind it. Employees who don't pause to look at it may not realize how much they have available to them. A gentle reminder at open enrollment helps them see the whole picture and get more from what you're already doing for them.
 

Five things to encourage employees to review

    1. 1. Contribution amount: Are they contributing enough to receive the full employer match? Even a 1% increase can make a meaningful difference over time.
    2. 2. Beneficiaries: Life changes such as marriage, children, or divorce can leave designations out of date. It's a two-minute check with outsized importance.
    3. 3. Investment fit: Do their current investments still match their goals, time horizon, and comfort with risk?
    4. 4. Rebalancing: Markets move, and portfolios drift. A quick look, or an automatic rebalancing option if your plan offers one, keeps allocations on track.
    5. 5. Old retirement accounts: Many employees have 401(k)s or 403(b)s left behind at former employers. Consider whether a rollover into your plan would simplify things, if your plan accepts them.
 

How sponsors can make it easy

    • • Add a short "401(k)/403(b) check-up" section to your open enrollment materials.
    • • Include a one-page checklist built from the five items above.
    • • Point employees to the plan's website, mobile app, and available support.
    • • Remind them of the match, and that their election can be changed at any time.
    • • Consider offering a short optional session or one-on-one time with a plan representative.
 

A small step with a lasting payoff

You've built a valuable benefit. A modest, encouraging nudge at the right moment helps employees use it, which supports their long-term security and the goals you had in mind when you offered the plan. If it would be helpful to talk through how to bring a 401(k)/403(b) check-up into your open enrollment process, I'm happy to do that whenever it suits you.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5997758

Interested in more?

Let's Talk Proactive HR

Open enrollment is a busy time. You’re choosing health plans, weighing dental and vision, and deciding on FSA or HSA contributions. With so many decisions, one important benefit is easy to forget: your 401(k)/403(b).

Your retirement plan is part of your benefits package, just like your health coverage. It’s there to help you build a secure future, and it works best when you check in on it regularly. Since you’re already reviewing your benefits, take a few extra minutes to review your Retirement Plan too.

Your five-point Retirement Account check-up

1. Review your contribution amount

Are you contributing enough to receive the full employer match? If not, you may be leaving part of your compensation on the table. Even a 1% increase can add up over time, and it’s often less noticeable in your paycheck than you’d expect, because contributions are made before taxes (unless you choose Roth). If your plan offers automatic increases, consider turning them on.

For 2026, the employee deferral limit is $24,500, with additional catch-up contributions available if you’re 50 or older.

2. Confirm your beneficiaries

Life changes: marriages, births, divorces, losses. Your beneficiary designation controls who receives your account, and it can override what’s written in a will. It takes just a few minutes to review, and it’s one of the most valuable things you can do for the people you care about.

3. Check that your investments still match your goals

Think about your time horizon, how comfortable you are with market ups and downs, and what you’re saving for. A choice that made sense several years ago may not fit today. If you’re not sure where to start, look at the plan’s target-date or professionally managed options, which are designed to adjust to your timeline.

4. Consider rebalancing

Markets move, and over time your mix of investments can drift away from your plan. For example, strong stock performance can leave you with more risk than you meant to take. Rebalancing brings your allocation back to where you want it. If you’re in a target-date fund, this is typically handled for you, but it’s worth confirming how your funds work.

5. Look for old retirement accounts

Did you leave a 401(k) or 403(b) with a former employer, or have an IRA you haven’t looked at in years? Gathering your accounts in one place can make them easier to track and manage. Rolling money into this plan is one option, but it isn’t the right choice for everyone. Compare investment options, fees, and features, and ask questions before deciding. Your plan’s service team can walk you through how a rollover works.

Why it matters

Your Retirement Account is one piece of a larger picture that includes your health coverage, insurance protection, and savings accounts. A little time now helps all of those pieces work together. Small, regular check-ins tend to beat big, occasional overhauls.

Your next step

While you’re making your open enrollment elections this season, log in to your 401(k) or 403(b) account and take ten minutes to work through the five points above. If you have questions or want help, reach out to the plan’s service team or attend an education session.

Your retirement plan is a valuable benefit. Don’t let it slip off your to-do list.

This post is for general educational purposes and is not individualized tax, legal, or investment advice. Plan features and contribution limits vary, so refer to your plan documents or consult a qualified advisor before making changes.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5997783

Interested in more?

Let's Talk Proactive HR

Serving on a retirement plan committee is a position of trust, but it's also a position of liability. Under ERISA, fiduciaries are held to one of the highest standards of conduct known to law  and "I didn't know" or "we meant to get to that" are not defenses that hold up in court or in a Department of Labor audit.

Most fiduciary breaches aren't the result of bad intentions. They're the result of good people running busy committees without a disciplined process. Below are the mistakes that show up most often when plans get reviewed, audited, or sued and what your committee can do this quarter to close the gaps.

 

Mistake 1: Treating Oversight as an Annual Event

Many committees meet once a year, review a presentation from their advisor or recordkeeper, nod along, and move on. The problem is that ERISA doesn't require sponsors to make good decisions once a year, it requires an ongoing, prudent process.

A single annual check-in makes it difficult to demonstrate that the committee was monitoring the plan continuously, which is exactly what a prudent expert would do. Market conditions change, share classes change, recordkeeper service levels change, and participant needs change far more often than once a year.

 

The fix: Move to quarterly committee meetings at minimum, with a standing agenda that covers investment performance, plan fees, participant outcomes (deferral rates, loan activity, distribution patterns), and any service provider issues. Even a 45-minute quarterly call is far more defensible than a single annual deep dive, because it shows a pattern of consistent attention.

Why it matters: ongoing monitoring is itself a distinct fiduciary duty under ERISA.  Courts and the DOL evaluate whether the committee was paying attention throughout the year, not just whether it eventually landed on the right answer.

 

Mistake 2: Confusing "We Discussed It" with "We Documented It"

This is the single most common gap auditors and plaintiffs' attorneys find. A committee can have an excellent, thoughtful conversation about whether to replace an underperforming fund or renegotiate recordkeeping fees.  And if it isn't written down, it is functionally invisible. In litigation and DOL investigations, the standard isn't what you actually did; it's what you can prove you did.

Common documentation failures include meeting minutes that simply say "investment performance was reviewed" with no detail on what was discussed or decided, missing records of why a fund was retained despite a watch-list flag, no record of the rationale behind selecting or retaining a recordkeeper, and committee charters that are outdated or were never formally adopted.

 

The fix: Minutes should capture not just attendance and topics, but the substance of the discussion and the reasoning behind decisions, including decisions to take no action. If your committee debates whether to fire an underperforming fund and decides to keep it for one more quarter, write down why. That single sentence can be the difference between a defensible prudent process and an indefensible rubber stamp.

 

Why it matters: ERISA evaluates fiduciaries largely on process, not outcomes.  If it isn't documented, regulators and courts have no way to credit the work the committee actually did.

 

Mistake 3: Reviewing Fees Without Benchmarking Them

Nearly every committee believes it reviews fees. Far fewer can show that they benchmarked those fees against the market within a reasonable timeframe.  Typically every two to three years, depending on plan size and complexity. Reviewing a fee disclosure document is not the same as determining whether that fee is reasonable for the services received.

This is also where revenue sharing arrangements, asset-based recordkeeping fees, and indirect compensation tend to hide. A plan can pay a "reasonable" headline rate while still overpaying once embedded costs are accounted for, particularly in older share classes that haven't been converted to lower-cost alternatives.

 

The fix: Conduct a formal RFP or fee benchmarking study on a defined cycle, and document the results even when the conclusion is "fees remain reasonable, no action needed." Make sure the committee understands the full fee picture: recordkeeping, investment management, advisory, and any indirect compensation. If you haven't benchmarked fees in the last three years, that alone is worth flagging at your next meeting.

 

Why it matters: excessive-fee litigation remains one of the fastest-growing categories of ERISA lawsuits, and "reasonable" fees can only be established through comparison, not assumption.

 

Mistake 4: No Formal Investment Policy Statement — Or One Nobody Follows

An Investment Policy Statement (IPS) is meant to be the committee's rulebook: how funds are selected, monitored, placed on a watch list, and removed. Two failure modes show up repeatedly. Either the plan has no IPS at all, leaving every decision looking ad hoc and unprincipled, or the plan has an IPS that the committee doesn't actually follow, which can be worse than having none, since it creates a written standard the committee can be shown to have violated.

 

The fix: If you don't have an IPS, get one in place. If you have one, pull it out at your next meeting and confirm the committee's actual practices match what's written. Update it if your process has evolved. Just make sure the document and the behavior stay aligned.

 

Why it matters: an IPS the committee doesn't follow can be worse than having none at all, since it creates a written standard the committee can be shown to have violated.

 

Mistake 5: Letting the Advisor Run the Committee

Plan sponsors often lean heavily on their advisor or recordkeeper, which is appropriate but there's a difference between leveraging expert support and outsourcing fiduciary judgment entirely. Fiduciary responsibility cannot be delegated away simply by hiring a good advisor. The committee still has to ask questions, push back, and make its own informed decisions.

 

The fix: Make sure your advisor is educating the committee, not just presenting to it. Committee members should understand why recommendations are being made, not just approve them. New member onboarding and periodic fiduciary training help ensure the whole committee, not just the most experienced member, can engage critically with what's being presented.

 

Why it matters: fiduciary responsibility cannot be outsourced by hiring a good advisor. The committee remains accountable for the decisions, even when an expert is in the room.

 

Building a Defensible Process

None of these fixes require dramatic overhauls. They require consistency: meeting regularly, writing down the reasoning behind decisions, benchmarking fees on a defined schedule, keeping governing documents current, and staying engaged rather than deferring entirely to outside experts.

Regulators and courts generally aren't looking for perfect investment outcomes. For example, index funds underperform sometimes, and that's not a breach. What they're looking for is a prudent, well-documented process. Committees that can show their work tend to fare far better than committees that simply got the right answer without being able to explain how they got there.

 

Five Questions to Benchmark Your Fiduciary Process

Before your next committee meeting, consider asking:

  1. 1. Have we formally documented our fiduciary decisions over the past year, including decisions to take no action?
  2. 2. When was our last independent fee benchmarking or recordkeeper review?
  3. 3. Are our investment reviews actually following our Investment Policy Statement?
  4. 4. Are we engaging critically with our advisor's recommendations, or simply approving them?
  5. 5. If the Department of Labor requested our fiduciary file tomorrow, would it clearly demonstrate a prudent decision-making process?

If any of these gives you pause, that's a reasonable place to start.

This article is for general informational purposes and does not constitute legal, tax, or investment advice. Plan sponsors should consult with ERISA counsel regarding their specific fiduciary obligations.

At Rose Street Advisors, we work alongside retirement plan committees to build disciplined fiduciary processes not simply to satisfy compliance requirements, but to create retirement plans that deliver meaningful value for both employers and participants. If your committee would like an objective review of its governance practices, we'd welcome the opportunity to provide a complimentary fiduciary process assessment.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5887179

Interested in more?

Let's Talk Proactive HR

When most people think about retirement, the first question is simple:

“Do I have enough and will it last?”

It’s an important question—but it’s not the only one. In many ways, it’s not even the most important one.

A more meaningful place to start is this:

“What do I want my life to look like?”

At Rose Street Advisors, we believe retirement planning isn’t just about building wealth. It’s about building a life you’re excited to live.

 

Start With the Life, Not the Number

It’s easy to think of retirement as a finish line. But in reality, it’s a transition into a new phase of life. One with more freedom, but also more responsibility to design your days with intention.

Take a moment and picture a typical Tuesday in retirement:

• What time do you wake up?
• Where are you?
• Who are you with?
• What are you doing that gives you energy?

This exercise may seem simple, but it’s powerful. Because your answers begin to shape everything else such as your spending, your savings goals, and your overall plan.

The Four Pillars of a Fulfilling Retirement

A fulfilling retirement usually includes more than financial security. We often see four key areas that matter most:

  1. Purpose

Work provides structure and identity. Without it, many retirees feel a sense of loss.

Ask yourself:

• What will give my days meaning?
• Will I volunteer, mentor, work part-time, or pursue a passion?

 

  1. Connection

Relationships play a huge role in happiness.

Consider:

•  How often do I want to see family and friends?
•  Do I want to travel to visit others or have them visit me?

 
  1. Health & Activity

Your ability to enjoy retirement is closely tied to your health.

Think about:

• What activities do I enjoy now that I want to continue?
• How will I stay physically and mentally active?

 
  1. Freedom

Retirement offers flexibility but too much unstructured time can feel overwhelming.

Planning ahead helps create a rhythm that balances freedom with fulfillment.

A Real-Life Example

Let’s take “Mark,” a participant who initially told us his goal was to retire at 62.

When we dug a little deeper, we discovered something important:

Mark didn’t actually want to stop working, but rather he wanted to stop working the way he was working.

His ideal retirement looked like:

• Coaching high school baseball
• Working part-time at a local golf course
• Spending winters somewhere warmer

Once we clarified that vision, his financial plan changed:

• He didn’t need to fully replace his income
• He could delay withdrawals from his retirement account
• His savings lasted longer than he expected

The result? Less pressure, more flexibility, and a plan that actually matched his life.

Bringing Your Vision Into Your Plan

Once you have a clearer picture of retirement, the financial side becomes more meaningful and more personal.

Your vision helps answer:

• How much you might spend (and on what)
• When you can realistically retire
• How to structure income from your retirement accounts
• What trade-offs are worth making today

This is where lifestyle and finances come together, not as separate conversations, but as part of one cohesive plan.

Watch:  Visualizing Your Retirement Lifestyle

 

Here’s a short video to help you think through what retirement could look like for you and how to begin shaping that vision:

Key Takeaways

Retirement isn’t just about having enough money.

It’s about having enough meaning, connection, and purpose to make this next chapter one you truly enjoy.

The numbers matter but they should support the life you want, not define it.

If you haven’t already, take a few minutes this week to picture your future. You might be surprised how much clarity it brings, not just to your retirement plan, but to the decisions you’re making today.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5887169

Interested in more?

Let's Talk Proactive HR

Is Your 401(k) Plan a Benefit…or a Talent Magnet?

In my work with plan sponsors, I see the same pattern again and again: the 401(k) gets treated as a compliance obligation rather than as a tool that actively shapes who chooses to work for you and how long they stay. I understand why. Fiduciary duties are real, the rules are unforgiving, and it's easy for a committee's attention to stay fixed on fee benchmarking and Form 5500 deadlines.

But I'd encourage every HR director, CFO, business owner, and committee member I work with to ask a second question alongside the compliance one: is this plan actually helping you compete for people?

Those are different questions, and the gap between them is where I spend most of my time advising clients.

 

What Does This Mean?

The data backs up what I see in practice. Vanguard's How America Saves research which is based on nearly five million participants, shows that improvements in retirement outcomes over the past two decades track plan design, not the economy. Automatic enrollment adoption grew from just 10% of plans in 2006 to 61% by year-end 2025, and the results are stark: participants in plans with automatic enrollment reach a 94% participation rate, compared with 64% in plans that rely on employees to opt in voluntarily. Plans with at least 1,000 participants have pushed adoption even further, with 79% now using automatic enrollment.

I tell clients this isn't a coincidence. It's behavioral economics doing exactly what it's supposed to do. When I help a sponsor redesign a plan, I'm not trying to make employees more financially disciplined. I'm trying to remove the friction that keeps disciplined intentions from turning into action.

The plans I consider genuinely competitive today typically combine several of the following:

 

• Automatic enrollment

• Automatic annual contribution increases

• A meaningful employer matching contribution

• Immediate eligibility for new hires

• A Roth contribution option

• Ongoing financial wellness education

• Personalized, one-on-one participant guidance

 

I rarely see one feature move the needle on its own. It's the combination paired with how clearly it's communicated that ultimately changes behavior.

 

Why Should Employers Care?

Because I know what it costs you when this goes unaddressed. Replacing an experienced employee can run well into a significant percentage of that person's annual compensation once you account for recruiting, onboarding, lost productivity, and training. I've sat in enough budget conversations to know that number gets leadership's attention faster than almost anything else I can show them.

At the same time, when I talk to plan sponsors about why their employees value the retirement plan, the answer is rarely "the match formula" in isolation.  It's the sense that the company is investing in their future, not just their current paycheck. That perception compounds. The latest Vanguard data shows nearly 45% of participants increased their savings rate in 2025, pushing the average combined savings rate to a record 12.1%, driven almost entirely by plan design rather than market conditions or economic optimism. When I see that kind of shift in a client's own participant data, it's almost always traceable to a specific design change, not a change in how employees feel about the economy.

So when a client asks me whether the retirement plan is "worth the investment" compared to other benefits, my answer is consistent: it's one of the few benefits I can show you moving both your hiring conversations and your retention numbers at the same time.

 

Three Plans I've Watched Transform Hiring and Retention

The examples below are composites drawn from patterns I've seen repeatedly across several plan sponsors, but each reflects real design decisions and real outcomes I've guided organizations through.

 

The manufacturer that fixed onboarding, not attitudes. A regional manufacturing client of mine had decent intentions among hourly employees but inconsistent enrollment.  However, people meant to sign up and never finished the paperwork during their first chaotic weeks on the job. I recommended three changes: immediate eligibility, automatic enrollment at a meaningful default rate, and automatic annual escalation, paired with simple orientation materials instead of a dense enrollment packet. Within a year, participation climbed sharply and far fewer employees were leaving match dollars on the table in their first year. What struck me wasn't that employees suddenly cared more about saving, they always had. We just stopped requiring them to fight the process to do it.

 

The firm that didn't need a richer match. It needed better conversations. A professional services client already offered a generous match, but I noticed in the data that a large share of employees were contributing just enough to get part of the match and stopping there. Rather than touch the plan design, I worked with them to build periodic workshops, recurring office hours with me directly, and personalized projections addressing the questions I hear most often: am I saving enough, should I be using Roth, am I invested appropriately, should I consolidate an old 401(k)? Contribution rates rose, more employees captured their full match, and HR told me the plan started showing up in employee engagement survey comments unprompted. Sometimes my best recommendation isn't a new feature, but rather it's helping people understand the one they already have.

 

The small employer that stopped trying to out-salary larger competitors. A privately held client kept losing finalist candidates to national firms with bigger compensation budgets. I helped them redesign the plan around immediate eligibility, automatic enrollment, a more competitive match, a Roth option, and I trained their recruiters to talk about the plan during interviews rather than waiting until an offer letter. Within eighteen months, their offer-acceptance rate improved, voluntary turnover declined, and the retirement plan started showing up as a named strength in their own employee surveys. The plan had become part of how they recruited, not just something HR mentioned during onboarding.

 

What Should Employers Consider Next?

When I sit down with a committee for an annual review, I push them past the compliance checklist with questions like these:

Would a candidate weighing your offer against a competitor's see your retirement plan as an advantage, or as forgettable? How much friction does a new hire face before their first contribution actually happens? Are your employees saving at a rate that puts them on track for retirement readiness, or just at the minimum needed to get the match? Do employees actually understand what your match is worth to them in dollar terms? Are you offering education throughout the year, or only during a single open enrollment window? Would automatic escalation or a Roth option change outcomes for a meaningful share of your workforce? And when an employee has a real question, do they have someone to ask, or are they left to figure it out alone?

If you can't answer those confidently, that's not a failure.  It's usually the starting point of the work I do with a client.

The Bottom Line

 

The plans I consider strongest do more than satisfy ERISA. They reinforce the culture an employer is trying to build, demonstrate a real investment in people's futures, and give that employer something concrete to point to in a competitive hiring conversation.

I tell every client the same thing heading into their fiduciary review: don't stop at "is this plan compliant." Ask me whether it's competitive. In my experience, a retirement plan built around thoughtful design, real employer contributions, automatic features, and ongoing guidance becomes one of the most effective tools an organization has for winning the candidates it wants and keeping the employees it can't afford to lose.

This article reflects general guidance based on current plan design trends and publicly available research, including Vanguard's How America Saves. It is not legal, tax, or individualized financial advice. Plan design changes, including automatic enrollment, automatic escalation, and student loan matching, involve specific compliance and recordkeeping requirements under SECURE 2.0 and ERISA. I'd recommend reviewing any changes with your recordkeeper and ERISA counsel before implementation.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5807097

Interested in more?

Let's Talk Proactive HR

Enforcing Mandatory Distributions: A Best Practice for Retirement Plan Sponsors

Retirement plan sponsors carry the responsibility of ensuring their plans operate smoothly and remain compliant. One often-overlooked but critical provision is the mandatory distribution of small balances.

Under most plan documents, participant balances under $7,000 must be distributed annually. These balances are either rolled into an IRA or cashed out with a check sent to the participant.

 

Benefits of Annual Enforcement

  • • Regulatory Compliance Staying aligned with IRS and ERISA requirements protects your organization from penalties and audits.
  • • Administrative Efficiency Removing small, inactive accounts reduces clutter and simplifies plan oversight.
  • • Cost Savings Recordkeeping fees are often assessed per participant. Fewer accounts mean lower administrative costs.
  • • Participant Support Distributions ensure former employees gain access to their funds, whether through an IRA rollover or direct cash-out.

A Proactive Approach

By enforcing this provision annually, plan sponsors demonstrate diligence, reduce risk, and enhance the overall health of their retirement plan. It’s a small step that delivers significant benefits for both the organization and participants.

Julia Sanders | AIF ®, CPFA®

Retirement Relationship Manager

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5371642

Interested in more?

Let's Talk Proactive HR

When most people think about financial planning, they picture investments, returns, or picking the “right” funds in their retirement plan.

But meaningful financial progress doesn’t start there.

It starts with you; your values, your goals, and what truly matters in your life.

Financial life planning is not about chasing performance. It’s about building a thoughtful, coordinated process that aligns every part of your financial life with the life you want to live.

  1. 1. Start With What Matters Most

Before any numbers or strategies come into play, take a step back and reflect:

  • What does a fulfilling life look like to me?
  • What are my top priorities. Now and in the future?
  • What does retirement mean beyond just “not working”?

For some, it’s freedom and flexibility. For others, it’s security, family, or the ability to give back.

Your financial plan should reflect these answers. Not someone else’s definition of success.

Clarity here drives every decision that follows.

  1. 2. Build Around Your Goals. Not Just Your Accounts

Once your priorities are clear, your financial strategy should begin to take shape. This is where a true planning process comes into focus.

It’s not just about your workplace retirement plan.   It’s about how all the pieces of your financial life work together, including:

  • Retirement income planning – How your savings turn into a reliable paycheck in retirement
  • Asset location – Placing investments in the right types of accounts (tax-deferred, Roth, taxable)
  • Tax planning – Being thoughtful about how and when income is recognized
  • Insurance planning – Protecting against risks that could derail your progress
  • Estate and legal planning – Ensuring your wishes are carried out and your family is supported

Each of these areas plays a role. When coordinated well, they create a more complete and resilient plan.

  1. 3. Focus on What You Can Control

A disciplined approach emphasizes the factors you can actually influence:

  • Saving consistently
  • Keeping costs low
  • Maintaining appropriate diversification
  • Staying invested through market cycles

Markets will move and sometimes unpredictably. A sound plan doesn’t try to outguess those movements. Instead, it’s built to endure them.

This is where process matters more than prediction.

  1. 4. Invest With Purpose

Your investment strategy should reflect your goals, time horizon, and comfort with risk. Not short-term headlines.

That means:

  • Avoiding emotional decisions during market volatility
  • Maintaining a diversified portfolio aligned with your plan
  • Understanding that risk and return are connected

The goal isn’t to eliminate risk, it’s to take the right amount of risk for your situation so you can stay on track.

  1. 5. Revisit and Adjust Over Time

Life changes and your plan should, too.

As your career evolves, your family grows, or retirement gets closer, your priorities may shift. Regular check-ins help ensure your strategy continues to align with what matters most.

Think of financial planning as an ongoing relationship with your future and not a one-time event.

A Real-Life Example

Consider Laura, a 42-year-old employee participating in her company’s retirement plan.

At first, Laura focused only on her 401(k), contributing enough to get the match and choosing a few funds she felt comfortable with. But she wasn’t sure if she was truly on track.

When she stepped back and went through a financial life planning process, a few important things became clear:

  • Her top priority wasn’t early retirement. It was flexibility in her late 50s to scale back work and spend more time with family.
  • She realized most of her savings were in pre-tax accounts, so she began adding Roth contributions to improve future tax flexibility.
  • She updated her beneficiaries and estate documents, something she hadn’t revisited in years.
  • She reviewed her insurance coverage to ensure her family would be protected if something unexpected happened.
  • And importantly, she began thinking about how her savings would translate into retirement income, not just an account balance.

Nothing about Laura’s situation required a drastic change. Instead, small, thoughtful adjustments, aligned with what mattered most to her, helped create a clearer, more confident path forward.

Bringing It All Together

Financial life planning is about connecting the dots.

It’s aligning your:

  • Goals
  • Investments
  • Income
  • Taxes
  • Protection strategies
  • Legacy wishes

…into one cohesive plan designed around you.

When each piece is working together, decisions become clearer and more intentional.

Final Thought

You don’t need to have everything figured out today.

Start with what matters most. Build a process around it. Stay consistent.

Over time, those thoughtful decisions can turn into something much more meaningful than just financial progress.  They can support a life that truly reflects who you are and what you value.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5653321

Interested in more?

Let's Talk Proactive HR

If you’ve recently joined your organization’s retirement plan committee, one of the most important responsibilities you’ll share is overseeing the plan’s investment lineup. For many, this can feel like stepping into unfamiliar territory with new terminology, new expectations, and real fiduciary responsibility.

The good news? You don’t need to be an investment expert to be a good fiduciary. What matters most is having a thoughtful process, asking the right questions, and staying focused on participant outcomes.

Here are four key areas to guide your approach.

  1. 1. Start with the Participant in Mind

At its core, your investment lineup should serve the needs of your employees and not the preferences of the committee.

Think about:

  • What is the general level of financial literacy among employees?
  • Are participants engaged, or do most rely on defaults?
  • What age demographics are represented (early career vs. nearing retirement)?

For many plans, this leads to a lineup anchored by qualified default investment alternatives (QDIAs) like target-date funds, complemented by a simplified menu of core options.

A helpful philosophy: make the right decision the easy decision. If participants do nothing, they should still be on a solid path.

  1. 2. Emphasize Simplicity Over Complexity

More investment options do not necessarily lead to better outcomes. In fact, too many choices can overwhelm participants and lead to inaction.

A well-constructed lineup often includes:

  • A target-date fund suite (as the default)
  • A small set of diversified core funds (e.g., U.S. equity, international equity, fixed income)
  • Possibly a capital preservation option (stable value or money market)

The goal is not to offer everything, but rather it’s to offer what’s necessary and useful.

From a fiduciary standpoint, simplicity can improve participant engagement and reduce the risk of poor decision-making.

  1. 3. Focus on Process, Not Predictions

One of the most common misconceptions is that committees are expected to “pick winners.” In reality, fiduciary responsibility is less about predicting performance and more about following a prudent, documented process.

This includes:

  • Establishing an Investment Policy Statement (IPS)
  • Defining clear criteria for selecting and monitoring funds
  • Regularly reviewing investments against those criteria

A consistent process demonstrates diligence and helps ensure decisions are made in the best interest of participants and not based on short-term market noise.

  1. 4. Understand Fees and Value

Fees matter, but context matters more.

Rather than simply selecting the lowest-cost funds, focus on value relative to cost:

  • Are participants receiving appropriate diversification?
  • Are the funds aligned with their intended role in the lineup?
  • Is performance reasonable given the strategy and market conditions?

Transparency is key. Committee members should understand:

  • Investment expense ratios
  • Recordkeeping and administrative costs
  • How fees impact participant outcomes over time

A thoughtful evaluation of fees is an essential part of fulfilling your fiduciary duty.

A Short Case Study: Turning Complexity into Clarity

A mid-sized manufacturing company with 120 employees had built its investment lineup over time by adding funds reactively rather than intentionally. By the time a new committee was formed, the plan offered 28 investment options, including multiple funds in the same asset class.

 

What they observed:

  • Over 60% of participants were invested in just 3–4 funds
  • Many employees held overlapping funds without realizing it
  • New hires were defaulting into a target-date fund but then moving out within months, often into more conservative options

The committee paused and asked a simple question: Is our lineup helping or hindering good decisions?

 

What they did:

  • Consolidated the lineup to 12 core options
  • Designated a single, well-structured target-date suite as the QDIA
  • Clarified each fund’s role within the lineup (no duplication)
  • Reviewed fees and replaced a few higher-cost funds where appropriate
  • Paired the changes with a simple participant communication campaign

 

The result:

  • Increased usage of the target-date funds as a long-term solution
  • Improved diversification among self-directed participants
  • Fewer “reactionary” investment changes during market volatility
  • Greater confidence from the committee in their fiduciary process

The takeaway: progress didn’t come from finding better funds. It came from creating a clearer, more intentional structure.

Bringing It All Together

Selecting an investment lineup is not a one-time decision, it’s an ongoing responsibility. The most effective committees:

  • Stay focused on participant outcomes
  • Keep the lineup clear and purposeful
  • Follow a disciplined process
  • Revisit decisions regularly with intention

This is where thoughtful plan design and participant guidance come together. A well-structured lineup, paired with clear communication and education, can meaningfully improve retirement readiness.

Final Thoughts

If you’re new to a plan committee, remember: you don’t have to have all the answers. You just need to ask the right questions and commit to a prudent process.

Done well, your role has a real impact. You’re not just selecting funds but rather helping employees build financial security for the future.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5460147

Interested in more?

Let's Talk Proactive HR

For many plan sponsors, the question is no longer whether to implement automatic features, it’s how to do it well.

With the continued evolution of legislation like SECURE 2.0 and a growing focus on participant outcomes, auto-enrollment and auto-escalation have become foundational plan design tools. But like any powerful tool, their impact depends on how thoughtfully they’re implemented.

This is where thoughtful plan design and participant guidance come together.

Let’s walk through a real-world case study, followed by a balanced look at the pros, tradeoffs, and what the research tells us.

Case Study: Turning Inertia into Progress

 

Employer Profile: Mid-sized manufacturing firm (250 employees)

 

Plan Design (Before):

  • Voluntary enrollment (opt-in)
  • Participation rate: 62%
  • Average deferral rate: 5.1%

 

Plan Design (After Enhancements):

  • Auto-enrollment at 6% default
  • Auto-escalation of 1% annually up to 10%
  • Default investment: target date solution
  • Re-enrollment campaign with education

 

Results After 18 Months:

  • Participation increased to 91%
  • Average deferral rate increased to 7.8%
  • Meaningful increase in employer match utilization

What changed?

Not the intent of employees but rather the structure around their decisions.

Auto features didn’t create new motivation, they removed friction.

Why It Works: The Behavioral Advantage

At the core of automatic features is a simple insight:

Most employees intend to save but don’t act.

Research shows:

  • 68% of employees say they should save more
  • Only ~3% actually follow through without intervention (NBER)

Auto-enrollment flips the default. Instead of requiring action to participate, it requires action not to. That shift alone can dramatically improve outcomes.

The Pros: Where Automatic Features Shine

 

  1. Increased Participation

Auto-enrollment consistently drives participation rates above 85–90% in many plans (BDO)

This is especially impactful for:

  • Younger employees
  • Lower-income workers
  • First-time savers
  1. Improved Savings Behavior Over Time

Auto-escalation helps participants gradually increase contributions without feeling it all at once.

It aligns saving with:

  • Pay increases
  • Career progression
  • Behavioral comfort
  1. Better Alignment with Retirement Outcomes

When auto-enrollment and escalation are combined, success rates (adequate retirement income) can increase dramatically.

One study showed improvement from:

  • ~46% probability of success → ~79% when multiple plan design features were applied (PubMed)

That’s the difference between “participating” and “on track.”

  1. Stronger Employer Value Proposition

Automatic features:

  • Simplify decision-making
  • Increase perceived benefit value
  • Demonstrate employer commitment to financial well-being

The Tradeoffs: Where Sponsors Need to Be Intentional

Automatic features are powerful, but they are not perfect.

 

  1. Default Rates Can Become Anchors

Employees often stay at the default.

A 3–6% default may:

  • Improve participation
  • But unintentionally cap savings behavior
  1. Cash Flow Sensitivity

Some employees, especially lower-income, may opt out due to immediate budget pressure.

Design matters:

  • Too high → opt-outs increase
  • Too low → savings fall short
  1. Leakage Still Undermines Outcomes

Even with strong plan design, participant behavior outside the plan matters.

Research shows:

  • Cash-outs at job change significantly reduce long-term impact (CNBC)
  • A meaningful portion of balances are withdrawn during transitions

Auto features help, but they don’t solve everything.

  1. Escalation Opt-Out Behavior

Auto-escalation participation tends to decline over time as participants opt out of increases.

This highlights a key reality:

Automation gets people started, but engagement sustains progress.

What the Research Really Says

There’s a tendency to think of auto features as a silver bullet. The data tells a more nuanced story:

 

What’s clearly true:

  • Participation increases materially
  • Savings rates improve
  • Outcomes are better than opt-in designs

 

What’s also true:

  • The impact is positive. But more modest than originally expected (CNBC)
  • Human behavior (opt-outs, job changes, cash-outs) reduces long-term effectiveness

In other words: Plan design drives momentum. But participant behavior determines outcomes.

Where Plan Sponsors Can Elevate the Outcome

The most effective plans don’t just implement auto features, they integrate them into a broader strategy:

 

  1. Start with the Right Defaults
  • 6%+ enrollment baseline
  • Escalation toward 10–12%

 

  1. Pair Automation with Communication
  • “Why it matters” messaging
  • Annual check-in prompts
  • Clear visibility into employer match

 

  1. Address Leakage
  • Rollover education
  • Portability solutions
  • Terminated participant outreach

 

  1. Re-enroll and Reset When Needed

Periodic re-enrollment can realign participants with stronger defaults.

Final Thought

Auto-enrollment and auto-escalation are not just plan features, they’re behavioral design tools.

When implemented thoughtfully, they:

  • Remove friction
  • Create momentum
  • Improve outcomes at scale

But the real value emerges when automation is paired with guidance.

Because the goal isn’t just participation.

It’s progress.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5344930

Interested in more?

Let's Talk Proactive HR