Target Date Fund Consulting for Plan Sponsors Who Want Real Answers
You've probably heard that the DOL expects plan sponsors to evaluate target date funds carefully before selection. But how many times have you wondered which glide path actually fits your participant demographics? We help you meet fiduciary obligations through documented TDF evaluation that protects you from liability.
Independent analysis with no fund family conflicts
Named fiduciary status under ERISA 3(21) and 3(38)
Documented process for audit protection
Why Choose Us for Target Date Fund Consulting?
Target date funds now hold $4.0 trillion in assets, making them the dominant investment in 401(k) plans. With 80% of plans offering TDFs and 60% of new contributions flowing into these funds, the DOL's 2013 guidance on proper selection isn't optional. PointOak specializes exclusively in retirement plan consulting, generating over 90% of our revenue from corporate plans.
What sets us apart is our independence. We're not affiliated with any recordkeeper or fund family, so our TDF recommendations serve only your participants' best interests. Acting as your 3(21) or 3(38) named fiduciary, we provide documented evaluation processes that protect you if audited. Our methodology evaluates glide path suitability, fees, underlying fund quality, and participant tendencies.
Our Target Date Fund Consulting Services
TDF Selection & Suitability
We analyze participant demographics, savings rates, and retirement patterns to determine if a "to retirement" or "through retirement" approach fits your plan with complete documentation for fiduciary protection.
Glide Path Analysis
We develop side-by-side comparisons of equity exposure, asset allocation strategies, and risk levels across TDF families to match strategy to participant retirement patterns.
Custom TDF Solutions
We help you evaluate whether off-the-shelf TDFs from major fund families meet your needs, or if a customized glide path designed specifically for your participant population makes sense.
TDF Documentation & Compliance
Our evaluation methodology addresses every DOL requirement, creating a defensible record that demonstrates prudent process with quarterly monitoring and comprehensive fiduciary file documentation.
Common Target Date Fund Challenges for Plan Sponsors
| Challenge | What It Looks Like | How We Help |
|---|---|---|
| Glide path confusion | Target date funds with identical target dates can have 40% variance in equity allocation. Plan sponsors lack framework to determine which approach fits their employees. | We evaluate participant characteristics and savings patterns to recommend glide paths aligned with your workforce, fully documented for compliance. |
| DOL compliance gaps | The DOL's 2013 guidance requires fiduciaries to evaluate multiple factors before TDF selection. Most plan sponsors don't know what those factors are or how to document the process. | Our evaluation methodology addresses every DOL requirement, creating a defensible record that demonstrates prudent process if you're audited. |
| Demographic mismatch | Off-the-shelf target date funds are designed for average investors, but your participants may have different income levels, retirement age expectations, or savings rates. | We analyze your specific participant tendencies and demographics to determine if traditional TDFs fit or if customization would better serve employees. |
| Fee transparency issues | Understanding whether your plan is getting appropriate share classes for your size is complex. Many sponsors overpay without realizing it. | We benchmark TDF expenses against plans of similar size and provide leverage to negotiate better fees or identify lower-cost alternatives. |
| Recordkeeper conflicts | Advisors affiliated with recordkeepers or fund families face pressure to recommend proprietary products, even when better options exist. | As an independent firm with no fund family ties, we evaluate all options objectively and recommend only what serves your participants. |
| Monitoring gaps | Many plans select target date funds once, then fail to review them quarterly. Changes in underlying funds, fees, or managers go unnoticed until problems emerge. | Our ongoing monitoring catches issues early with documented quarterly reviews that demonstrate continuous fiduciary oversight. |
What To Expect: Our Process
Analyze Current State
We review your existing target date funds and participant demographics to identify gaps.
Evaluate Options
You receive detailed comparison of TDF families, glide paths, fees, and suitability to your plan.
Document Selection
We create comprehensive documentation showing your prudent evaluation process for fiduciary protection.
Implement Changes
Our team works with your recordkeeper to transition participants and update plan documents.
Monitor Ongoing
You get quarterly reports on TDF performance, fees, and adherence to investment objectives.
About PointOak Retirement Advisors
PointOak Retirement Advisors is an independent retirement plan consulting firm headquartered in McLean, Virginia, serving plan sponsors nationwide. The firm generates over 90% of its revenue from corporate retirement plans and acts as a 3(21) or 3(38) named fiduciary under ERISA with every client. PointOak evaluates over $120 billion in retirement plan assets quarterly using a proprietary 10-point pass/fail scoring system and conducts more than 10,000 plan benchmarks annually.
Frequently Asked Questions
TDF consulting fees vary based on plan size, complexity, and scope of services. Our fees are typically structured as an annual retainer or percentage of plan assets. Most clients find the cost is far less than the potential liability exposure from selecting target date funds without proper documentation. We provide transparent pricing with no hidden charges.
Three critical differences set us apart. First, we generate over 90% of our revenue from retirement plans, so we're true specialists rather than generalists. Second, we're independently owned with no recordkeeper or fund family affiliations, eliminating conflicts of interest. Third, all our advisors can act as 3(21) or 3(38) named fiduciaries, providing direct liability protection.
A comprehensive target date fund evaluation typically takes 4-6 weeks from initial analysis through final documentation. This timeline includes reviewing participant demographics, comparing glide paths across fund families, evaluating fees and performance, and preparing detailed reports. Implementation timing depends on your recordkeeper's processes and any participant communication requirements.
A "to retirement" glide path reaches its most conservative asset allocation at the target date, assuming participants will withdraw all savings when they retire. A "through retirement" glide path continues reducing equity exposure for 10-20 years past the target date, maintaining some growth potential for participants who draw down gradually. The right choice depends on your participant characteristics and withdrawal tendencies.
Start by analyzing your participant demographics including age distribution, salary levels, and expected retirement patterns. Then evaluate which glide path philosophy aligns with those characteristics. Compare fees to ensure you're getting appropriate share classes for your plan size. Finally, assess underlying fund quality and manager tenure. Document each step of this evaluation process for fiduciary protection.
Target date funds carry several important risks plan sponsors must understand. The principal value is not guaranteed at any time, including at the target date. Participants can lose money if the stocks and bonds owned by the fund decline. Different TDFs with the same target date may have vastly different risk levels due to glide path variations. Plus, participants who don't understand the fund's assumptions may end up with unsuitable allocations.
Investment advisory services offered through PointOak Retirement Advisors, LLC. This site is published for residents of the United States only. PointOak Retirement Advisors, LLC does not provide tax or legal advice.
Ready to Simplify Your Financial Life?
Schedule a complimentary consultation to discuss your financial goals and how we can help. There's no cost for the initial meeting. No obligation. Just a conversation to see if we're the right fit for your needs.
What To Expect
Our initial consultation typically lasts 30–45 minutes. We'll discuss your goals, current situation, and how we might work together. Come prepared with questions.