“Be slow in choosing a friend,

Slower in changing.”

Benjamin Franklin

How does this quote relate to your retirement plan? Well, a retirement plan is the only thing that will get you through your golden years and you don’t want to put your these years in the hands of someone who wouldn’t care for your best interest.

Choosing a retirement plan is an important decision for self-employed and regular employees alike. For entrepreneurs or small business owners, it takes a lot of convincing to prioritize retirement planning over the current business needs. If you are ready to start a Solo 401k plan for your retirement, it is equally important to choose a Solo 401k provider carefully. One of the key features of Solo 401k is the freedom to invest and you want all the expertise that you can get to make the right decision.

5 Factors to Consider When Choosing a Solo 401k Provider

You are going to invest and stay invested in your retirement plan for several years to come. Here are 5 important factors that you should review periodically to ensure the competency of your retirement plan provider.

1. Investment Options: Solo 401k allows investment in real estate, private businesses, precious metals, tax liens, and several other options. However, these options differ from one provider to another and you need to inquire about these investment options upfront. At the same time, it is best to have someone who can offer appropriate investment advice and has the qualification to do so.
2. Service Level: Just like there are two types of customers, one seeking the lowest fee and the other seeking the best service, service providers follow the same rule. If you are a business owner or self-employed individual, managing all the paperwork could get difficult. It will help to choose a provider who can take care of these matters and keep you posted accordingly.
3. Plan Administration: There could be very few things worse than being chased by the IRS for breaking any regulations. Always look for a service provider that could perform due regulatory diligence and help you understand your responsibilities as the plan owners.
4. Recordkeeping service: You are going to invest in different areas generating multiple transactions every time. If you are choosing a Solo 401k plan, always have a recordkeeping service to keep record of your transactions and choose one that offers on-demand reporting.
5. Fees Disclosure: Unlike regular one-time business transactions, your retirement plan will accumulate substantial wealth and a single decimal change in provider fees will have a huge impact. Make sure that you choose a Solo 401k provider that discloses every relevant fee upfront with no hidden clauses.