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FAQs
How
is Howe Barnes compensated? We can be compensated
by either direct fees or commissions, whichever way works
best for you and your plan. Many plans will have lower costs
by using a commission model, others will benefit from a
set fee arrangement. In both arrangements, we fully disclose
all areas of compensation so you understand where we are
compensated and the best method for your organization.
Am
I limited in my investment choices if I decide to work with
you? No. We work with all providers and investment
companies, and can help you sort through the thousands of
investment options available to you.
I
have already begun my review. Can I still work with you?
Yes. We will compare the solutions you have already
reviewed plus add some unique solutions you may not have
considered.
My
record-keeper is doing a good job. Can I add your services
without changing my current vendor? Yes. Many times
our compensation is already built in and is being paid to
another advisor/agent/consultant/broker regardless of what
services they are providing. We can review this arrangement
with you before we decide to do business together.
We
have locations in 11 states. Can you handle multiple locations?
Yes we can.
We
are a small organization. What size of companies do you
work with? We work with companies of all sizes. If
for some reason we are not a good fit for your organization,
we will give you some direction on where to find a suitable
solution.
Do
you work with other advisors/agents/brokers/consultants?
Yes. In some cases we are brought in by other advisors
to compliment their specialties, or a vendor will contact
us directly to provide certain services. Some of the vendors
have participant education packages built into their pricing,
so we function as consultants to the plan sponsor on investment
choice, plan design, fiduciary and service issues, leaving
the participant educational duties to them.
I
do not know how much or if my broker (advisor/consultant/agent)
is being compensated on my current plan. Can you tell me?
Yes and no. We will know on most plans, but on others
it is harder to tell what compensation is built in. There
are consultants who charge hard dollar fees and also take
commissions, and there are many different ways insurance
companies compensate agents and consultants. If we cannot
help you decipher those numbers, we will tell you how to
get the information from your provider.
Our
current vendor handles all of the educational services to
our participants now. Why would we need your services? With
ERISA requiring you to act as a "prudent expert" and more
litigation popping up in the courts every day, our services
are becoming more popular in conjunction with the direct
sold programs. We will use our leverage to get more out
of your current vendor, troubleshoot vendor issues, monitor
and recommend investments, discuss plan design issues, and
monitor the educational process (see Services). Many of
the plans like you are describing were originally sold by
an agent, broker, or consultant, who more than likely is
continuing to be paid a percentage of your expense ratios.
By transferring the advisor listed on your plan, you may
be able to add our services without changing your current
costs.
Won't
I save money by going to a direct provider? We work
with the direct providers on a fee-only basis. Of course,
if you feel you have the knowledge, expertise, comfort level
and you are willing to take the fiduciary risk, you should
review direct providers. However, you may be surprised at
how well some of the advisor distributed products can compete,
even on price.
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