FeeBuilder is a two-page, on-demand benchmarking of YOUR fees and value that can be used with both prospects and clients. Benefit from the same method that ensures that Quality, Service, Value and Extra Credit are a part of every fee conversation with FDI’s FeeBuilder report.
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Data Matters
All of the data used in the FeeBuilder benchmark groups are sourced from the generation of FDI’s Value and Fee Benchmarking with FEEPOINT® reports. So, the fees and service are gathered directly from the service providers charging the fees and providing the services.
Patented Method
FDI patent #8510198 covers the 5-step process below that is fair, repeatable and an important part of a Fiduciary’s obligation to follow a prudent process for determining fee reasonableness.
1: Customize Benchmark Groups by Service Providers
Groups are built so that:
- Factors that drive Service Provider cost are considered
- All datapoints are statistically meaningful with outliers removed
- Diversification across Service Providers, business models and market segments
2: Framework to Consider Quality
Frameworks include:
- Characteristics of the Service Provider
- Services/processes that make a plan relationship successful
- People/technology/resources that support the plan
3: Assess Scope of Services
Scope evaluated to:
- Identify core services being provided to the plan
- Analyze services that drive plan costs based on volume and degree of difficulty
4: Examine Value Delivered
Value received by:
- Plan Sponsors
- Service quality
- Plan design assistance
- Utilizing best practices
- Participants
- Retirement outcomes
5: Allow for Extra Credit
Extra Credit calculated by:
- Starting with a base Service Provider fee for a standard level of service
- Adjusting for incremental fiduciary status and/or extra work/meetings
Report Format
FeeBuilder is available to Advisor/Consultants, Recordkeeper’s and TPA’s for use with both clients and prospects. Ability to add a branded quality and value page.
Custom Quality, Service, Value Page
Describe your personal Quality, Scope of Services and Value Proposition to both the Plan Sponsor and their participants using by providing your own custom content.
Fee Reasonableness Page
Prove your reasonableness by showing how the Extra Credit you provide in terms of fiduciary status, hours and meetings compares to other Service Providers servicing similar size plans.