How to Write an Investment Policy Statement, 2nd Edition

CONCLUSION

MESSAGE TO PLAN SPONSORS

I hope this compact guide has given you a clearer understanding of three key points:

1. The definition of a fiduciary.

2. The responsibilities and liabilities that are associated with being a fiduciary.

3. The critical need for developing an IPS.

While the development and monitoring of an IPS should not be an overwhelmingly complex process, some fiduciaries may not feel comfortable trying to tackle the task by themselves. A sign of a thoughtful fiduciary is the ability to do an honest, critical assessment of the skills and time they have to devote to their responsibilities.

REMEMBER: The role of the fiduciary for a 401(k) plan is to manage the process!

Remember, ERISA encourages fiduciaries to hire prudent experts to help them execute the investment process that includes developing an IPS. Once you understand where you need help, hire the necessary experts to assist you. There are many very experienced financial advisors who specialize in providing advisory services for defined-contribution 401(k) plans. Whether you prepare the IPS by yourself or have an experienced retirement advisor assist you . . . Do Not Procrastinate. Do It Now!