Index Fund Advisors Retirement Plan Solutions

Transcription

1 Index Fund Advisors Retirement Plan Solutions Guided SIMPLE TRANSPARENT IFA Retirement Plan Solutions 1

2 2 GUIDED. SIMPLE. TRANSPARENT.

3 Retirement Solutions Built for You Index Fund Advisors, Inc. (IFA) is a fee-only investment advisory and wealth management firm that provides risk-appropriate, globally diversified wealth services to individuals and institutions with a fiduciary standard of care. IFA designs customized 401(k), 403(b) and Defined Benefit retirement plan solutions for small and mid-size companies that are constructed to support the specific needs and objectives of owners/plan sponsors - while helping employees define a clear path for a successful financial future. IFA s experienced team of professionals are your central point of contact and strategically work with you and industry leading service providers to develop a successful retirement plan. Our guided, simple and transparent solutions are designed to: Create high-value at a reasonable cost Relieve administrative burden Transfer investment selection fiduciary liability Provide appropriate, streamlined investment options Achieve maximum plan participation Help your employees to and through a comfortable retirement IFA Quick Facts As of 12/31/2014 Registered Investment Adviser Founded 1999 Headquartered in Irvine, CA $2.6 Billion AUM 2,000+ clients IFA Retirement Plan Solutions 3

4 Guided Plan Sponsors IFA is dedicated to providing a comprehensive retirement plan solution that meets the needs of your organization and its employees. The customized Plan Sponsor services are designed to guide you, alleviate the administrative burden and provide ongoing support, monitoring, governance and communication to help ensure plan success. 4

5 Dedicated Relationship Manager An IFA Wealth Advisor is committed to the highest standard of care for you, your organization and your plan participants. As your central point of contact, IFA acts as your quarterback to ensure all moving pieces and involved parties are aligned. Service Provider Management An IFA retirement plan brings together the flexibility of unbundled retirement service providers with leadership that delivers the convenience found in a bundled plan. IFA s Unbundled Bundled approach provides unbiased, industry-leading providers and competitive pricing. These industry-leading partners are selected and monitored for their outstanding service capabilities, competitive costs and shared commitment to excellence for both plan sponsors and plan participants. Your service provider selection process should be diligent and personalized to the organization s needs. Not every service provider is right for your plan. IFA is able to guide you to the best-fit service partners, as well as assist in the contract negotiations, transition process and/or conversion support and benchmarking of fees and services. Plan Sponsor Service Providers Payroll Provider Investment Fund Manager Trustee/Custodian Third-Party Administrator Consultants Recordkeeper IFA Retirement Plan Solutions 5

6 Investment Selection & Monitoring IFA provides a prudent investment selection process coupled with a disciplined approach to long-term performance creating a powerful retirement investment platform that suits the needs of any investor through the following portfolio options: Risk-Based Index Portfolios Target Date Index Portfolios Build Your Own Index Portfolio IFA Index Portfolios IFA s highly regarded Index Portfolios are globally diversified across 44 countries and over 13,000 companies, and, built in accordance with Nobel Prize winning research and evidence-based analysis of historic stock market data. IFA s asset allocation models are designed to capture the six dimensions of risk exposures that have shown to reward investors over very long periods of time and match them with their individual risk capacity. This process facilitates investor-specific risk and return and mitigates the fiduciary burden of plan sponsors. For more information on IFA Index Portfolios, visit IFA Index Portfolio Asset Allocations % Stock Indexes % Bond Indexes Lower Risk IFA Index Portfolios Higher Risk 6

7 Investment Reporting A primary element of fulfilling the fiduciary duty of the advisor is to provide a robust and straightforward investment monitoring program. IFA s Quarterly Performance Monitoring report provides fund performance data for the investments in the plan as well as performance of relevant benchmarks. Plan Communications & Participation IFA provides a full-suite of tools and resources to help support the process, set standards, ensure compliance and achieve maximum participation: Plan Governance As your investment advisor, IFA will ensure that all tasks are completed compliantly and with the greatest efficiency. From determining plan objectives, structure, requirements and disclosures to establishing the investment policy statement, fiduciary best practices and participant communications we ve got it covered. Retirement Scorecard Plan Governance Tool Kit Enrollment Kit Quarterly Reporting Dedicated 401(k) Participant Website Retirement Analyzer Survey Marketing Communications IFA Retirement Plan Solutions 7

8 SIMPLE Plan Participants IFA is dedicated to providing easy-tounderstand and efficient retirement plan investment solutions that assist employees in securing their long-term financial success. The personalized Plan Participant services are designed to advise and educate employees on the importance of saving for retirement as well as provide intuitive tools and materials to educate and assist them on their road to retirement. 8

9 Investing for Retirement Made Simple IFA s Index Portfolios take the complexity out of selecting retirement investments. Ten pre-created asset allocations are provided for investors ranging from very conservative to very aggressive improving participant confidence, engagement and overall plan satisfaction. Quick Guide to IFA Index Portfolio Selection Age Profile Risk Profile Stock / Bond Index Portfolio Only High Risk Investors Most Aggressive 100% / 0% IFA Index Portfolio 100 Age 20 to 29 Aggressive 90% / 10% IFA Index Portfolio 90 Age 30 to 39 Aggressive 80% / 20% IFA Index Portfolio 80 Age 40 to 49 Moderately Aggressive 70% / 30% IFA Index Portfolio 70 Age 50 to 59 Moderately Aggressive 60% / 40% IFA Index Portfolio 60 Age 60 to 69 Moderate 50% / 50% IFA Index Portfolio 50 Age 70 to 79 Moderately Conservative 40% / 60% IFA Index Portfolio 40 Only Low Risk Investors Moderately Conservative 30% / 70% IFA Index Portfolio 30 Only Low Risk Investors Conservative 20% / 80% IFA Index Portfolio 20 Only Low Risk Investors Risk Averse 10% / 90% IFA Index Portfolio 10 Proper Asset Allocation Asset allocation is one of the most important determinants of investor success. Renowned investing expert Roger Ibbotson identified that more than 100% of variability of a fund s investment return is due to asset allocation 1. Participants who have the opportunity to receive professional advice regarding appropriate asset allocation and ten risk-calibrated index portfolios may significantly improve their odds of investing success. Invest & Relax With the complexity of investing for retirement removed and the construction of a prudent retirement plan solution that delivers optimal returns, plan participants are able to invest and relax and focus on more important aspects of their lives. 1 IFA Retirement Plan Solutions 9

10 Easy Enrollment Standardized and customized enrollment kits, group enrollment and investment education meetings allow for a streamlined and efficient enrollment process. Ongoing Investor Education IFA is dedicated to educating your employees on the benefits of saving for retirement. IFA provides many different educational outlets of investment information to support investors on their journey including: One-On-One Advice Your employees will be able to meet with an experienced IFA Wealth Advisor who can guide them through the investment process, including appropriate portfolio selection, emotions management and subsequent retirement readiness reviews. Dedicated Plan Participant Website Articles Videos Charts Academic Resources Financial Books And, much more at Investor Behavior Emotional reactions to financial upheavals are real. Consequently, IFA listens to plan participant fears and seeks out the issues driving those feelings to provide practical answers to help avoid what could potentially be a costly mistake. 10

11 IFA REPLACES SPECULATION WITH AN EDUCATION RESOURCES HELPING EMPLOYEES TO AND THROUGH RETIREMENT Data As of December 31, ,243 2,611,787 ARTICLES 322 ACADEMIC AC RESOURCES 308 QUOTES Investment related quotes views v of the latest index funds information and news 1,574 CHARTS 497 of which are in the IFA.com chart index 353 IFA.TV VIDEOS 1,024 YouTube subscribers and 494,265 views of the IFA Investment Education E Destination Channel Connecting with 8,300 Facebook 2,010 Twitter 513 LinkedIn FOLLOWERS 12 STEPS IFA s 12-step recovery program for active investors 100 IFA INDEX PORTFOLIOS Globally diversified index portfolios of stocks and bonds with 8 implementations 2,259 Financial Books in the IFA Library Our extensive library of investment, economics and business books IFA Retirement Plan Solutions 11

12 TRANSPARENT A Clear Path IFA is dedicated to complete plan transparency and an unobscured view of all fees and expenses. Trust is an important relationship component and as your fiduciary partner we are required to act only in the best interest of our clients. 12

13 Fiduciary Partner A business owner assumes a number of duties, along with personal liability, when overseeing a retirement plan. Fortunately, IFA acts as a 3(38) investment fiduciary, accepting liability and responsibility for the selection, monitoring and replacement of passively managed index funds. Fees Matter Hidden fees in other 401(k) plans can make it extremely challenging to identify the actual fees paid for services. Average Plan Cost as Percentage of Assets Example of 50 Participants and $2,500,000 in Assets Conversely, IFA s retirement plan solutions are offered on a fee-only basis with no hidden compensation or commissions, no revenue sharing and fees are agreed upon and clearly spelled out in our agreement. 1.16% 1.44% IFA also provides institutional share class mutual funds not typically available to the general public, and on average, are less expensive than industry averages. IFA Industry Average Total Plan Cost* All of this translates into savings that are passed on to plan participants, which improves their chances of meeting their retirement goals. Source: 401k Averages Book, 14th Edition, Chart 3.2 * As of December 31, Total cost include investment, recordkeeping, administration and trustee expenses. IFA Retirement Plan Solutions 13

14 Working Together IFA looks forward to working with your organization on establishing a retirement plan that meets your specific needs. And, while every plan sponsor and organization is different, they share a common goal of receiving high value and vital plan outcome for the fees paid. 7 IFA Tips to Administer a Prudent Plan 1. Work with an ERISA 3(38) fiduciary this provides plan sponsors/ owners confidence that the advisor is acting in your best interest not their own. 2. Exclude any revenue sharing funds from the plan transparency helps you make sure that you get what you pay for. 3. Don t work with an advisor who is affiliated with a fund or a fund family self-dealing is just too easy for them. 4. Work with providers who disclose any conflicts of interest this assures fair treatment. 5. Select funds based solely on what is in the best interest of the plan participants risk-appropriate, passively managed funds with the goal to maintain low costs help participants get on the right track and stay there. 6. Offer your participants pre-allocated globally diversified index portfolios which encompass varying degrees of investment risk the right portfolio for each participant. 7. Work with an advisor who is committed to servicing the plan and educating the participants Selecting the asset allocation that best suits your participants is key to their success, along with making sure they understand the benefits of investing for the long term and avoiding speculation. 14

15 IFA s mission is to change the way the world invests by replacing speculation with an education. - Mark Hebner, President, Index Fund Advisors, Inc. Disclosures As with any investment strategy, there is potential for profit as well as the possibility of loss. IFA does not guarantee any minimum level of investment performance or the success of any index portfolio or investment strategy. All investments involve risk and investment recommendations will not always be profitable. Please see for further disclosures. Guided SIMPLE TRANSPARENT IFA Retirement Plan Solutions 15