In today’s business environment, an effective 401(k) plan is vital to attract and retain quality employees. In recent years, there has been a shift away from Defined Benefit pension plans into defined contribution plans that allow participants to take charge of investing their accounts. The loss of a guaranteed benefit under the old-style pension plan has put pressure on employees to save and invest their way to a successful retirement through the utilization of the 401(k) plan.
To this end, BayPoint offers an Internet-based service structure coupled with an investment platform consisting of low-cost, high-performing mutual funds that have been carefully selected from various fund families. This allows for the diversification and performance necessary to achieve retirement goals and ERISA compliance.
Various asset allocation methods have proven over time to lower risk and provide a reasonable rate of return for investors, especially long-term investors like retirement plan participants. However, investment needs and participant profiles are as diverse as the modern workplace. Open architecture thus provides access to over 8,000 mutual funds from many different fund families. Employees select from the “best of the best” in each asset class, ensuring the proper asset allocation for all participants.