There are three big reasons why law firms care about retirement plans for their employees according to Twelve Points Wealth Management Co-founder and Principal, Francesca Federico.
First is risk. Law firms work day in and day out protecting their clients from risk, and they want to do the same within their 401(k).
Next is cost. Many law firms’ plans go unchecked for five or ten years and end up costing not only the firm, but also its participants. By having Twelve Points analyze their plans, law firms have saved a considerable amount of money.
Finally, these firms want to save more. Dave Clayman, also a Co-founder and Principal of Twelve Points, helps law firms with plan design. Organizations have been slow to raise contribution limits, so savings are often not meaningful to attorneys who will need 70% of their income replaced when they retire. By using strategies such as cross tested or cash-balanced plans, the Twelve Points team is able to help attorneys increase the amount they can save.
Chris Cahill, Principal of Family Office Services, has worked with attorneys for the past decade and says that they are very focused on their retirement. Having a quality retirement plan can be important to maintaining a longterm relationship.