Wabash Capital's Approach

The people at Wabash Capital have been advising clients and managing money for more than 30 years. Large retirement/401(k) plans, overseen by trustees, have engaged us to manage their plans. Our clients hire us for three reasons:

• Professional investment management
• Fiduciary responsibility and liability
• Close personal service

The Pension Protection Act (PPA) of 2006, perhaps the most sweeping reform of the retirement plan industry in 30 years, attempts to bring better practices to plan participants and in doing so to improve participation rates and investment outcomes.

Specifically, the legislation encourages plan sponsors of defined contribution plans, most commonly 401(k) plans, to adopt three significant features:

• Automatic enrollment of participants.
• Automatic defaults to appropriate investment options.
• Provision of investment advice.

Most significantly, the PPA makes it possible for advisors like Wabash Capital to not only provide educational materials to plan and potential participants, but also to provide real advice on what investments are appropriate for them, removing the liability factor from the plan sponsors. In practical terms, this addition is beneficial to participants and plan sponsors alike.  

For more information regarding Wabash Capital's approach, contact Jim Exline.