With only a few very specific exceptions, contributions to the Plan must be made in cash. An agent typically is not a fiduciary since the agent does not act as plan trustee or give investment advice concerning plan assets. It is clear that each of these standards has an effect on the contributions to the Plan and their investment. For instance, non-investment is not an option. The use of a professional investment counselor or investment manager may be used to provide expertise.
Smaller plans tend to start with mutual funds, annuities, and annuity contracts.
Larger plans may add other assets such as securities, bank and insurance contracts, real estate, and other types of assets. Here it is important to be able to make monthly or quarterly investments or distributions and expense payments in smaller amounts. The ability to buy, sell, or transfer smaller amounts is important. Outside of an investment pool, competent professional management is simply not available at a reasonable cost. These instruments allow the sharing of these costs across the pool of many investors, many plans.