Wrap documents are being sold the very same way. Companies "need" them. I have read so many sales pitches about these that are 90% or more simple hype. Look. I "need" a new Porsche. But, I am not going to spend what it would take to get one because my Honda is doing just fine.
Let me be clear. Wrap Documents are NOT ... (get this please) NOT required. SPD's are. (Summary Plan Descriptions). The ONLY reason to have a Wrap document as advertised for a mere $750 (plus whatever else can be charged for extra leg room or a better view) is IF the company has need to file multiple 5500's. That means 2 or more. We have not found anyone that can do a 5500 for $500 unless is it part of the broker service agreement. So, it makes sense that if a Wrap Document could save on two or three extra 5500 prep fees, $750 is a good deal. I am sure that selling Wrap Docs for $750 will get that company closer to a Porsche faster than I will, but I am sleeping really well at night and cannot wait for the day that that $750 fee goes the way of the Hula Hoop.
We are MoneyWise, not "pound foolish". So, our Wrap Documents start at $75 and if the group has over 100 participants, the fee tops out at $500. MoneyWise for real Solutions.