The Young Want Advice… PPA Will Let You Give It

The desire for additional advice and assistance among plan participants appears closely related to age (i.e., the experience the individual has in managing their own investments) and household income.

The desire for additional help investing their retirement plan money is highest among Generation X participants and declines steadily as age increases.

I would like more advice and assistance in choosing among the investment choices offered in my plan

With the recently passed Pension Protection Act legislation, participants should have better access to advice for their retirement money, since advisors will not be concerned with treading in advice areas that were previous prohibited.

Prior to The Pension Protection Act, financial advisors to a retirement plan were generally not permitted to give advice to participants regarding investments. This exemption within the PPA allows an advisor to the plan to act in the role of "fiduciary advisor" to participants and beneficiaries who direct investments in their accounts and provide investment advice as long as specific conditions are met:

• The advisor must receive the same fee regardless of the investment options chosen, or the advice arrangement must use a computer model that meets certain conditions to be set forth by the Department of Labor at a later date.
• Prior to providing advice, the advisor will be required to provide written disclosure to participants that includes among other items, all fees or compensation relating to the advice received by the advisor or any affiliates.

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