401(k) Investment Policy Statement Template

In this task, we will identify the purpose of the 401(k) plan. Understanding the purpose will help guide the investment decisions and ensure alignment with the overall goals of the plan. What is the main objective of the 401(k) plan? What benefits do employees expect to receive? What are the long-term goals?

In this task, we will define the investment objectives for the 401(k) plan. These objectives will serve as guidelines for selecting suitable investment options and determining the desired outcomes. What are the specific investment objectives that need to be achieved? Does the plan aim for long-term growth, capital preservation, or a combination of both?

In this task, we will outline the roles and responsibilities related to the 401(k) plan. It's important to clearly define who is responsible for managing and administering the plan, as well as the roles of the investment committee and any third-party service providers. Who will be responsible for overseeing the plan? Who will be responsible for selecting and monitoring the investment options?

In this task, we will identify the risk tolerance of the employees. Understanding their risk tolerance will help determine the appropriate investment options and asset allocation. What is the employees' risk tolerance? Are they comfortable with taking on higher levels of risk in pursuit of potentially higher returns, or do they prefer more conservative investment options?

In this task, we will decide upon a set of diversified asset classes for the 401(k) plan. Diversification helps reduce the overall risk by spreading investments across different types of assets. What asset classes should be included in the plan? Consider options such as stocks, bonds, real estate, and cash equivalents.

In this task, we will select suitable investment options within each asset class. It's important to choose options that align with the investment objectives and risk tolerance of the plan. What specific investment options should be considered within each asset class? Are there any restrictions or preferences?

In this task, we will establish criteria to evaluate the performance of the selected investment options. Regular evaluation helps ensure that the chosen options are meeting the desired outcomes and making progress towards the investment objectives. What criteria should be used to assess the performance? How often should the evaluation be conducted?

In this task, we will set up a systematic review process for the performance of the investment options. The review process ensures regular monitoring and provides an opportunity to make any necessary adjustments or replacements. How should the performance of the investment options be reviewed? Who will be responsible for conducting the reviews?

In this task, we will determine a replacement strategy for underperforming investments. When investments consistently fail to meet the desired performance, it may be necessary to replace them with better alternatives. What should be the strategy for identifying and replacing underperforming investments?

In this task, we will design a communication plan to inform employees about their investment choices. It's important to educate and engage employees regarding their options and encourage their active participation. How should the communication plan be structured? What channels and resources will be used?

In this task, we will draft the initial 401(k) Investment Policy Statement. The Investment Policy Statement outlines the guidelines, objectives, and procedures related to the plan's investment decisions. What key elements should be included in the initial draft of the Investment Policy Statement?

In this task, we will finalize the Investment Policy Statement. The final version should incorporate any necessary revisions or updates based on feedback and consensus. Are there any specific revisions or updates that need to be included in the final version?

In this task, we will distribute the final Investment Policy Statement to all participants. Ensuring that all participants have access to the policy statement helps promote transparency and provides a clear understanding of the investment guidelines. How should the final Investment Policy Statement be distributed?

In this task, we will implement the chosen investment options. This involves executing the necessary steps to invest the plan's assets according to the defined investment strategy. What steps are required to implement the chosen investment options?

In this task, we will monitor the performance of the investment options on an ongoing basis. Regular monitoring helps ensure that the investments remain in line with the objectives and risk tolerance of the plan. How should the performance be monitored? How often should the monitoring be conducted?

In this task, we will review and revise the Investment Policy Statement as needed. It's important to regularly review the policy statement to ensure that it remains relevant and aligned with the changing needs and goals of the plan. How should the review process be conducted? What triggers the need for revisions?