The Services Available to Your 401k Plan

Transcription

1 The Services Available to Your 401k Plan Daniel R. Liff Senior Vice President Wealth Management Corporate Retirement Director Financial Planning Specialist Experience and Guidance That Make A Difference

2 By offering your employees a retirement plan, you are providing them with the opportunity to save for a secure retirement. You play a fundamental role in managing this essential employee benefit and it is important that you understand your obligations as the plan s fiduciary.

3 According to the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries of 401(k) plans must carry out their duties prudently and act in the best interest of plan participants. Fiduciary responsibilities can include: choosing a provider to administer the plan, selecting an appropriate menu of investments and monitoring such providers and investments on an ongoing basis. It has been said that ERISA s prudence standard is one of the highest duties known to the law. Fulfillment of fiduciary duties will generally be measured by the steps a fiduciary takes to meet its obligations and whether a fiduciary has made informed and reasoned decisions. In fact, the Department of Labor and the courts have taken the position that fiduciaries without the knowledge or experience to make sound decisions have a duty to seek expert assistance. For example, when making investment decisions, a fiduciary who lacks investment experience should hire an investment specialist. For many plan sponsors, investment and other fiduciary responsibilities can seem overwhelming. That s where I can help. I can provide guidance and information to help you meet your fiduciary responsibilities. I know you re busy managing your business and that you may not have the experience or the time to do the necessary research to make the right decisions. I have the tools and expertise to help you make informed investment decisions as well as address your other plan responsibilities. You can feel confident knowing that Morgan Stanley Smith Barney is committed to putting my resources and experience to work for your retirement plan. MORGAN STANLEY SMITH BARNEY/3

4 Upon request, I can offer any of the following services to your retirement plan. Evaluation Needs Assessment Plan Participation Enrollment Meeting Participant Education Strategic Enhancements Provider Search Daniel R. Liff Investment Monitoring Fiduciary Audit File Issue Resolution Investment Policy Statement Investment Services Investment Management Plan Management 4/MORGAN STANLEY SMITH BARNEY

5 Evaluation NEEDS ASSESSMENT To derive the maximum benefit from your retirement plan, it is important to select the most appropriate features and services for your business. As your Financial Advisor, I can offer valuable guidance by identifying and evaluating your company s needs. Examine the history of your business and goals for your plan Review your retirement plan objectives Analyze the demographics and investment behavior of your employees PROVIDER SEARCH There are a variety of factors to consider when evaluating the capabilities of providers, including record keeping, communications, investment flexibility, compliance, fees and services. As your Financial Advisor, I can work with you to identify the provider that best suits your company s needs. Solicit and evaluate proposals from a variety of providers Invite select providers to present their programs Assist you in the review of proposals to ensure the program chosen is an effective strategy MORGAN STANLEY SMITH BARNEY/5

6 Investment Management INVESTMENT POLICY STATEMENT An investment policy statement clearly defines plan goals and investment parameters and provides the plan investment committee with guidelines for investment management decisions. It is also an effective way to ensure your investments are meeting your plan objectives on an ongoing basis. As your Financial Advisor, I can help you develop this important document. Provide a sample investment policy statement Help Identify specific goals Assist in selecting a broad range of asset classes to be represented in your retirement plan Identify investment parameters to help measure success Establish a process to periodically review plan investments against stated goals INVESTMENT SERVICES As your Financial Advisor, I have the ability to help you select the appropriate range of potential investment options to meet your plan s specific needs. Educate on general investment concepts such as diversification, risk, asset allocation and historical rates of return Identify multiple investments within each asset class from the provider s fund universe that are consistent with your plan s investment policy statement Help ensure that the funds meet the requirements of Section 404(c) of ERISA 6/MORGAN STANLEY SMITH BARNEY

7 Plan Management INVESTMENT MONITORING While selecting appropriate investments is critical to the success of your plan, monitoring each investment option is just as important. The criteria you use to monitor your investment options should be consistent with the goals outlined in your investment policy statement. As your Financial Advisor, I can provide the tools and guidance to help you maintain an appropriate range of investment options within your plan. Review periodic reports to help you monitor the plan s investment performance Conduct searches to replace investment options that are no longer consistent with the plan s investment policy statement Provide investment education and research to encourage sound decision-making ISSUE RESOLUTION While the ongoing maintenance of your plan is important, I understand that it is not your only responsibility. As your Financial Advisor, I can help you resolve issues that arise in connection with the day-to-day activity of your plan. Interface with your plan provider to address your questions Seek corrective action for any deficiencies in service Provide ongoing support FIDUCIARY AUDIT FILE One of the best ways to demonstrate compliance with the appropriate standards under ERISA is through adequate written documentation. This can be compelling evidence of an adherence to a prudent process and an effective argument against allegations of a fiduciary breach. As your Financial Advisor, I can help you establish a fiduciary audit file. Organize key plan records Help identify areas requiring further development Demonstrate that policies and procedures were established Document adherence to those policies and procedures MORGAN STANLEY SMITH BARNEY/7

8 Plan Participation Enrollment Meetings & Participant Education Participation is vital to the success of any plan and a strong participant education program contributes to this success. Now more than ever, investors are looking for assistance in reaching their financial goals. As your Financial Advisor, I can help your employees make informed decisions by educating them on the features of their plan and basic retirement planning concepts. Explain your plan s features Review the importance of diversification and other asset allocation strategies Reinforce the benefits of participation and increasing contributions Encourage the use of retirement planning strategies Strategic Enhancements While a good education program is important, it may not always help to ensure a successful plan. If you are concerned about low participation rates, low deferral rates and whether your employees are properly diversified, as your Financial Advisor, I can introduce strategies with the potential to improve the health of your plan. Review plan demographics and asset allocation to identify areas for improvement Recommend appropriate strategies including automatic enrollment, automatic deferral increases and default investment options Help you monitor the impact of the strategies you choose to implement Investment Seminars & Re-Enrollment Meetings One of the best ways to encourage your employees to maximize the benefit of their retirement plan is through in-person meetings and seminars. As your Financial Advisor, I can provide continuing education for your existing employees and enrollment meetings for new employees. Reinforce concepts presented in initial enrollment meetings Offer programs to further employees understanding of financial markets and personal financial planning strategies Assist retiring employees with retirement plan distribution strategies 8/MORGAN STANLEY SMITH BARNEY

9 My Background Daniel R. Liff Senior Vice President Wealth Management Corporate Retirement Director Financial Planning Specialist With over twenty years experience as a fully licensed investment professional, Dan concentrates on asset allocation as an integral part of the wealth management strategies he implements for his clients. Dan sees proper asset allocation within a portfolio as the key to producing favorable long-term returns with reduced volatility. Dan s primary focus is on his client s specific needs and risk tolerance which are major factors in the assessment, evaluation and ultimately selection of appropriate investment managers. Developing a long-term relationship and delivering exceptional client service are two key commitments Dan makes to every client. In addition to his investment strategy work with private clients, as a Corporate Client Group Director, Dan has extensive experience with corporate clients in providing guidance in Retirement and Estate Planning; profit sharing and 401(k) plans; non-qualified deferred compensation plans, and both stock purchase and stock option plans. His credentials include certification as a Chartered Retirement Plans Specialist; Financial Planning Specialist; Estate and Trust Services Consultant; Certified Equity Professional; and Dan was named to Morgan Stanley Smith Barney s Director s Council for excellence in client services, On a personal level, Dan is an avid golfer and enjoys collecting and restoring antique radios. Dan and his wife Joanne, married for more than eighteen years, have four wonderful children. MORGAN STANLEY SMITH BARNEY/9

10 Upon request, Morgan Stanley Smith Barney can offer any of the following services to your plan: Evaluation Needs Assessment Provider Search Investment Management Investment Policy Statement Investment Services Plan Management Investment Monitoring Fiduciary Audit File Issue Resolution Additional Services Investment and Benefit Consulting - Defined Contribution Plans - Defined Benefit Plans IRA Rollover/Distribution Education & Assistance Non-Qualified Deferred Compensation Plans Stock Plan Services 403(b) Plans Plan Participation Enrollment Meetings & Participant Education Strategic Enhancements Investment Seminars & Re-Enrollment Meetings 10/MORGAN STANLEY SMITH BARNEY

11 Morgan Stanley Smith Barney is dedicated to making your retirement plan a success and, at the same time, helping you meet your fiduciary responsibilities. To deliver the retirement plan you and your employees deserve, contact me today. MORGAN STANLEY SMITH BARNEY/11

12 Daniel R. Liff 58 South Service Road, Suite 400 Melville, NY Telephone: Toll-Free: Facsimile: fa.smithbarney.com/liff Unless you are otherwise advised in writing, Morgan Stanley Smith Barney is acting as a broker-dealer and not as an investment advisor. Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer s particular circumstances from an independent tax advisor Morgan Stanley Smith Barney LLC. Member SIPC /09