- Fixed Fee Pricing
- Financial Planning
- Employer Plans
- About Clarity
Fixed-Fee Retirement Plans for Engineering Firms
Clarity can help you establish a new plan or transition your existing plan into a fixed-fee retirement plan that is customized to the retirement needs of your employees.
Our low-cost plans provide 100% transparency of all plan fees and expenses. No hidden 12b-1 revenue-sharing fees or asset-based pricing.
Changes in DOL regulations, fees and pricing over the past two years have driven the costs of retirement plans to an all time low. Competition in the retirement plans market makes it easy for companies, schools and tax-exempt organizations to have access to low-cost, fixed fee retirement plan platforms and institutional share class mutual funds, once only available to entities with significant plan assets.
We are Fiduciaries to You and Your Employees
Clarity Capital Advisors, LLC is a fee-only registered investment advisor (RIA) firm legally bound by the fiduciary standard of care. We are held to the highest standard of responsibility to our clients. We do not engage in revenue-sharing or recommend mutual funds with 12b-1 fees (kickbacks from mutual funds) in our plans.
Learn more about our Fiduciary Responsibility under About Clarity.
Our Plan Partners are Low-Cost Retirement Leaders
When it comes to selecting a retirement plan provider, costs, services provided, reputation and expertise are all very important. We believe our providers offer competitively priced plans with exceptional service and decades of experience and expertise in the low-cost mutual fund market.
Eliminate conflicts of interest with fixed-fee per participant pricing.
Our plan pricing is based on the number of participants in your plan, not on the value of your plan's assets. Clarity's fixed-fee per participant pricing eliminates the conflicts of interest associated with asset-based pricing. In an asset-based plan, financial advisors are incentivized to offer high cost mutual funds to offset the fees associated with the plan and/or charge a percentage of the plan's assets as an advisory fee. This is normally done through revenue-sharing mutual funds with 12b-1 fees (kickbacks to the provider) or a higher cost share class of the same fund. High cost mutual funds can be detrimental to your employees' long-term retirement savings.
According to ERISA (Employee Retirement Income Security Act of 1974), employers must ensure that “fees paid to service providers and other expenses of the plan are reasonable in light of the level and quality of services provided.” Sponsoring plans and investments with excessive fees violates this federal regulation.
FACT: Every dollar paid in advisory fees and mutual fund expenses is one less dollar that is working for you and your employees towards your retirement goals.
Personal Risk Numbers for Employees
Using our personal risk alignment platform, each employee will receive their own Personal Risk Number that will match them to an appropriate low-cost, highly diversified investment portfolio designed for their unique risk level.
We offer up to four investment options to your employees
- Array of Ultra Low-Cost Institutional Share Class Target Date Funds from Vanguard - Built on the principles of high diversification and low costs, these funds automatically adjust their risk level based on the number of years remaining to the targeted retirement date.
- Low-Cost, Highly Diversified Model Portfolios - Our model portfolios range from conservative to aggressive allocations and are designed to capture the returns of broad market indexes offered across the global financial markets using the Vanguard and Dimensional Fund Advisors mutual funds.
- Build Your Own Portfolio - Employees may choose from a wide selection of low-cost funds from Vanguard and Dimensional Fund Advisors.
- Participant Self-Directed Brokerage Accounts from TD Ameritrade Institutional
Features of the Clarity Capital Advisors Retirement Plan
- Institutional and Admiral share classes for the best pricing. These are ultra low-cost, broadly diversified index mutual fund options for retirement plans. No asset based fees. No 12b-1 revenue sharing funds. No hidden fees.
- Fixed-fee pricing makes it easy to provide full disclosure of all fees and charges associated with your plan
- Low-cost investment options from Vanguard and Dimensional Fund Advisors
- Quarterly benchmarking report and plan analysis
- Robust online interface for plan sponsors and a dedicated employee website with retirement planning tools
- Semi-annual Retirement Days at your company for employees. We will meet with employees one-on-one to answer questions and discuss their retirement planning and investing needs.
- Do you have an existing relationship with a third party administrator? Our plan providers are able to partner with many third party administrators.
Clarity's Financial Workshops for Employees cover real-life financial topics that are important to employees
We engage employees and help them understand the importance of financial planning and long-term investing. In addition to the semi-annual or annual Retirement Plan Days scheduled for your company, we provide a series of educational materials covering budgeting, college planning, preparing for retirement, transitioning into retirement, family estate planning and smart investing. Employees receive on-going education in our monthly blog Clarity Insights covering a wide variety of investment and planning related issues.
Retirement Planning for Employees: Employees may opt to schedule a confidential appointment to meet with us one-on-one to discuss their personal planning and investing needs.
Questions to ask a potential Retirement Plan Advisor:
1. What are the total costs associated with the plan? Recordkeeping costs, third party administrator fees, custodian fees, plan (financial) advisor fees, mutual fund expense ratios and the weighted expense ratios of the model portfolios. Have them break all of these fees down into a simple to read and understand format. This is important to have in writing!
2. How are plan fees paid? Are plan fees fixed and reviewed each year? Are you using expensive mutual funds with 12b-1 fees to offset plan expenses, when a lower cost share class for the same fund is available? If so, why?
3. How is the plan advisor paid? Is it based on a percentage of the assets in the plan or on a flat per participant basis?
4. What type of retirement planning education will you provide to our employees beyond the typical group meeting?