“Like many investment professionals, I came to this industry based on personal experience,” says Tim Wood. Unfortunately, it wasn’t positive. “My father, an honest, hardworking man, had his financial future shortchanged by a poorly performing retirement plan that reflected its financial advisor’s many conflicts of interest,” Tim explains.
“While I could never give my dad back his financial security, in my own way, I’m creating a better future for the people whose lives I touch. That’s why I do what I do.”
One of the biggest ways Tim helps is to act as the fiduciary for the retirement plans Foster & Wood advises. “Specifically, we become the discretionary ERISA Section 3(38) Investment Manager on behalf of our clients,” Tim says.
This carries a greater degree of commitment, and responsibility, than the typical “co-fiduciary” role assumed by many investment advisory firms, even some of the industry’s largest.
“Ultimately, being a ‘co-fiduciary’ can translate into an investment advisor making recommendations and decisions that are not based on the plan participants’ best interests,” Tim says. “And while ‘co-fiduciary’ sounds good on paper, the plan sponsor has little to no legal recourse if the advisor’s choices decimate the participants’ retirement – which is exactly what happened with my dad.”
“I’m creating a better future for the people whose lives I touch. That’s why I do what I do.”
More importantly, having a fiduciary manage your company’s plan improves the employee’s experience. By eliminating conflicts of interest, making your plan’s investments understandable, and offering investment advice that is in their best interest, employees become more engaged in the process.
In partnership with clients, Foster & Wood helps to develop strategies to enhance and secure executives’ personal fiduciary security and reduce annual plan expenses. This can help result in greater retirement income for all employees.
“When a fiduciary manages your company’s retirement plan, employees become more engaged in the process.”
Connecting with people
Working with partner David Foster, Tim is committed to providing unbiased investment to all employees who need additional assistance, “from the new guy working on the loading dock to the folks in the executive suite.”
Once again, Tim credits his father as his inspiration: “By caring about every individual’s outcome, and by taking each of their situations as seriously as another, I know I’m doing right by my dad.”
“I care about every individual’s outcome, and take each of their situations seriously.”
Let Foster & Wood help you reduce the time and effort required to empower all of your employees with a retirement plan.
Talk to us about your needs today.