That’s how many people fill out their brackets for March Madness. Jennifer Taglione writes about these and other shortcuts used to pick the winner of the NCAA basketball championship in her post, Bracketology 101: Common Bracket Methodologies, on the Bleacher Report blog.
That type of decision-making may be o.k. for picking (or trying to pick) the winner of the NCAA basketball championship. But for selecting a new 401(k) service provider, short-cut decision-making is not a good idea. Selecting a 401(k) service provider is, of course, a fiduciary decision.
401(k) Helpcenter provides some excellent guidance in their COLLECTED WISDOM™ On Choosing and Monitoring Plan Providers. It may even help avoid what I have seen as the common mistakes made in selecting a 401(k) service provider:
- Not understanding service and investment models
- Not understanding fees
- Not listening to employees about what matters to them
- Making the decision-making based solely on company politics and other relationships
- Looking solely at “costs”
Similar type of decision-making I write about in How Not To Hire An Auditor For Your ERISA Plan.