The TRC Group at Morgan Stanley Experience That Makes a Difference
Left to right: Thomas Kokjohn, Mike Roberts and Chris Lellli 16644 W. Bernardo Drive Suite 400, San Diego, CA 92127 858-674-3930/MAIN 888-502-401K/Toll-Free 858-674-4844/fax fa.morganstanley.com/thetrcgroup 2 Morgan Stanley
Retirement Plan Consulting is Our Focus Athletes training for a marathon seek out a coach with the experience and qualifications to offer the encouragement and support needed to run the race efficiently. The same is true when you re helping employees plan for a long-term goal like retirement. Managing a comprehensive retirement plan for your organization takes a unique set of skills. As a fiduciary, you are responsible for selecting and monitoring service providers and investments, while also being committed to understanding and implementing ERISA regulations. You must also continue to create fresh strategies to encourage your employees to take full advantage of the program. For many plan sponsors, these responsibilities can be overwhelming. That s where we can help. At The TRC Group, we have access to first-class resources that are designed specifically to tackle the hurdles you and your employees face and the specialized knowledge and experience to address those challenges now and in the future. Our priority is to understand and consult on the specific needs of you and your employees in a collaborative, professional and educational manner one that places your goals at the center of our relationship. As seasoned professionals who focus on the retirement plan industry, we know first-hand how to get to the heart of what matters most. We also know what it takes to achieve results and drive outcomes by fully leveraging valuable resources to support your vision. We ve built our practice around customizing financial solutions for organizations just like yours. Morgan Stanley 3
The Importance of Working With a Retirement Plan Specialist Organizations face unprecedented challenges in today s financial environment complex regulations that change frequently, escalating expenses and global forces that shape market behavior. Confronted with needing to do more with less, plan sponsors are seeking a different type of consulting firm one that can bring a more comprehensive view in providing resources, consulting tools and advice. At Morgan Stanley, we understand the complexities of the retirement marketplace and have developed the Corporate Retirement Director program, an exclusive program for Financial Advisors committed to meeting the demanding needs of today s plan sponsors. To earn the distinguished designation of Corporate Retirement Director (CRD), Financial Advisors must meet the following criteria: Identified by Morgan Stanley as retirement-focused Financial Advisors Have a proven track record working with corporate and institutional clients Achieved stringent requirements with regard to number and size of retirement plans serviced Hold an external retirement-focused designation with ongoing continuing education requirements Only approximately 2 percent of the firm s Financial Advisors hold this designation and we are proud to be included in this esteemed group of professionals. 4 Morgan Stanley
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Meet the Team Our Story In June 2003, Mike, Tom and Chris joined as partners to service 401k plans on the basis that employees need to be educated on why to save and how to do it, while employers need to be educated on what questions to ask to ensure that their plans are efficient, compliant and high-performing. Vision Our vision is to change the way participants view their employers retirement plans by making them inspiring. Our Value Proposition Our value proposition is to help our clients increase employee participation through education and communication, reduce plan risk and expense, and transfer work from your desk to ours. Our Mission Statement Our mission is to help our clients develop a deep sense of confidence that their retirement plans will provide financial security for their employees. 6 Morgan Stanley
Michael Roberts, CFP, CIMA, C(k)P Corporate Retirement Director First Vice President Wealth Management Financial Advisor For more than a quarter century, Mike Roberts has dedicated his entire career to helping clients understand, create and manage retirement plans that meet and anticipate their unique needs and fiduciary responsibilities. He has extensive relevant experience and holds several titles that underscore his unwavering commitment to this highly detailed area of financial services. Mike works closely with employers to develop a best practices approach to managing all aspects of their retirement plan from providing them with the most competitive plan to managing their fiduciary liability and to protecting their many interests. Mike is a Corporate Retirement Director, a designation that represents less than 2% of Financial Advisors identified by Morgan Stanley as retirement-focused Financial Advisors. He is also a member of the TRC Group at Morgan Stanley, recognized by Plan Sponsor Magazine as one of the Top 100 Retirement Plan Advisor Teams in 2011. While building his business across a broad spectrum of diverse industries, Mike has earned numerous designations. He holds the Certified Investment Management Analyst designation from the Haas School of Business UC Berkeley and is a member of the Investment Management Consultants Association (IMCA). Mike earned the CERTIFIED FINANCIAL PLANNER designation from Boston University and is a member of the Financial Planning Association. He is also a member of the National Association of Plan Advisors, a sister organization of the American Society of Pension Professionals & Actuaries. Most recently, Mike earned his Certified 401(k) Professional designation through The Retirement Advisor University at UCLA. Mike has received many accolades for his work in the retirement plan arena. In 2011, 401Wire recognized him as one of the Top 300 Most Influential Advisors in the 401(k) plan Industry. In that same year, he was inducted into the Morgan Stanley* Business Owner Executive Council, an invitation-only program reserved for the top 2% of Financial Advisors that have shown an extensive understanding of the needs of small- and middle-market business owners. Mike has been married to his lovely wife, Sandra, for 21 years. They have proudly reared four children, each of whom excels as students and athletes. Mike and Sandra have routinely exhibited an unwavering commitment to education and hard work, which, they believe, has contributed significantly to their children s success. Mike and his family live in 4S Ranch, California. In his spare time, Mike enjoys coaching youth sports, working out, art and travel. Morgan Stanley 7
Thomas J. Kokjohn, CFP, CRPS Corporate Retirement Director Vice President Wealth Management Financial Advisor Tom Kokjohn has been providing a wide range of retirement plan services to employers and plan participants for 17 years. Among his responsibilities, he creates comprehensive employee education programs for participants, ensuring that they are highly informed on such topics as building wealth, asset allocation, income generation and asset protection in retirement. Tom specializes in educating plan participants through on-site group meetings, one-on-one financial planning and participant transition consulting. His passion for education is most evident by the amount of time he spends with participants to simplify the complexities of investing. In fact, he has firmly established a solid reputation for describing complicated topics in an easy-to-understand manner and empowering participants to be confident investors. Tom is a Corporate Retirement Director, a designation that represents less than 2% of Financial Advisors identified by Morgan Stanley as retirement-focused Financial Advisors. He is also a member of the TRC Group at Morgan Stanley, recognized by Plan Sponsor Magazine as one of the Top 100 Retirement Plan Advisor Teams in 2011. Tom holds several noteworthy designations. He is a CERTIFIED FINANCIAL PLANNER and a member of the Financial Planning Association. He is a Chartered Retirement Plans Specialist, highlighting his dedication to the retirement plan industry, and is a member of the National Association of Plan Advisors, a sister organization of the American Society of Pension Professionals & Actuaries. Tom has been recognized for his work with plan sponsors and participants. In 2015, The Financial Times named him to its prestigious list of America s Top 401 Retirement Plan Advisors. A graduate of California State University, San Marcos, Tom holds a B.A. degree in business administration. He has also earned an academic certificate in personal financial and estate Pplanning from the San Diego State University s graduate school of business. Tom lives in 4S Ranch in San Diego, California, with Shannon, his wife of 10 years, and their three children. He spends weekends coaching their sports teams and also enjoys golfing, surfing, traveling and camping with his family in the great outdoors. 8 Morgan Stanley
Christopher Lelli Portfolio Associate Senior Registered Client Service Associate Chris Lelli has nearly two decades of experience in financial services. For most of his career, he has specialized in serving the many needs of retirement plan clients, such as Human Resource Managers and plan participants. In fact, Chris views his role as an extension of a company s Human Resource department, because he frees up time for clients to spend on other areas of their business. As a Morgan Stanley Portfolio Associate, and the dedicated relationship manager for the TRC Group at Morgan Stanley, Chris handles most of the day-to-day duties that ensure clients satisfaction with their retirement plan. This includes coordinating education and enrollment support to plan participants, coordinating the distribution of monthly newsletters, and scheduling quarterly plan reviews with Plan Sponsors. While Chris possesses many positive attributes, he is perhaps best known for his strong communication skills. Whether a Plan Sponsor would like specific information on a particular investment or a plan participant requires education on asset allocation, Chris has the expertise and the ability to deliver The TRC Group s investment philosophy in simple, easy-to-understand terms. Overall, Chris strives to develop and maintain a solid personalized relationship with each of the Group s clients. Or as he likes to say, No one is a number with us. Chris is a graduate of San Diego State University and lives in San Diego, California, with his lovely wife, Carla, with whom he has been married for 10 years, and their sixyear-old daughter, Katherine. He enjoys cooking, hiking, golf, going to the theater and doing all those things that parents typically do with a six-year-old. Morgan Stanley 9
Our Experience and Guidance Makes a Difference With a commitment to outstanding service and an emphasis on excellence, our mission is simple: To provide objective and high-quality guidance, specialized knowledge and experience, and tailored solutions to empower your organization to make informed decisions about the retirement benefits you offer to your employees. Managing retirement benefits that align with your organization s vision involves many decisions across multiple disciplines. We will work with you to understand your vision so we may craft a customized plan that supports your organization and your employees. When you work with us, we provide the highest standard of care and can assist you in improving the: Retirement Readiness of Your Employees Management of Your Fiduciary Risk and Responsibilities Overall Satisfaction With Your Retirement Plan 10 Morgan Stanley
The Four Key Elements of Our Comprehensive Approach Investment Selection and Monitoring Retirement Plan Management and Risk Reduction Expense Oversight and Management Employee Education and Engagement Guide investment oversight Conduct Needs Analysis Establish Investment Policy Statement Conduct Asset-class Analysis Assist with fund selection Help establish framework for monitoring investments DeLIver Stable Value due diligence review and analysis Provide ongoing InveSTMenT monitoring Assist with investment selection AS AN ERISA 3(21) Fiduciary and, ERISA 3(38) Investment Manager, upon request Keep apprised of legislative and regulatory updates PeRFoRM plan ASSeSSMent and review Provide strategic PLAnning Plan benchmarking Evaluate and understand plan services and costs Assess reasonableness of plan costs relative to services received Document prudent process Support 408(b)(2) review of reasonableness of costs and services Help select appropriate service provider at reasonable cost Assist in selection and cost negotiations with service providers Set goals to help PRePARe employees for retirement EduCATe plan PARTICIPAnTS Facilitate enrollment meetings Retirement educational materials and seminars Investment and asset allocation education STRIve to IMPRove PLAn participation Offer risk-based and target-date model portfolios Corporate Account Summary Customize your account servicing experience by choosing the frequency of client reporting and billing. For example, choose to receive monthly bills and an annual client report. Or alternatively, you can opt for an annual bill and biannual client reports. Investment advisory services discussed herein are offered through Morgan Stanley Smith Barney LLC ( Morgan Stanley ) Advisory Programs only. Please see the applicable program disclosure document for more information, available at www.morganstanley.com/adv or from your Financial Advisor. Morgan Stanley 11
Access to Robust Intellectual Capital As Corporate Retirement Directors at a leading global wealth management firm, we have access to the vast intellectual resources available. It is the combination of the expertise, insights and analysis of these individuals that enable us to deliver what we believe are first-in-class solutions to you and your employees. Solutions from Our Experienced Team of Professionals Wealth Management Global Investment Committee Seven core members of seasoned professionals with extensive expertise Monitors market and economic conditions and publishes outlook and commentary Creates asset allocation models with the goal of providing integrated investment solutions Oversight of asset allocation program for defined contribution plans Global Investment Manager Analysis Experienced investment professionals, including a dedicated Stable Value Analyst Extensive investment manager analysis and ongoing evaluation Retirement Services Retirement plan professionals dedicated to creating and maintaining a robust offering Manage relationships with leading record keepers and service providers Roughly 23,000 bundled DC plans 1 $513 billion in retirement assets 1 $170 billion in DC plan assets 1 1 Data as of December 31, 2015 12 Morgan Stanley
Morgan Stanley Workplace Wealth Solutions Morgan Stanley Workplace Wealth Solutions is a corporate financial wellness program that aims to improve your employees financial wellbeing through capabilities that helps address the complex challenges they face in managing their wealth. Our tailored financial wellness program is designed to bolster your organization s current benefits program. We provide your employees with access to vital wealth management programs, including wealth education, financial planning, corporate executive services and tax planning and preparation services. By matching your employees with experienced Morgan Stanley Financial Advisors, we can empower them to preserve and grow their wealth now and for future generations. Corporate Benefits: A comprehensive financial wellness program, custombuilt to help address the specific priorities of your employees. An expansion of your existing benefits platform to incorporate important attributes to attract and retain top talent. The opportunity for greater participation in all of your benefits programs, improving overall costs and return on investment. Helps provide protection of your company s reputation by formally educating employees on how to comply with complex regulatory obligations. Reinforced messaging to your employees that your company cares about their well-being and their families financial future. Employee Benefits: Personalized financial advice through a team of locally-based Financial Advisors who have significant experience working with corporate employees. The ability to have a comprehensive financial plan built to spec, addressing your employees personal and professional financial goals. Access to an extensive suite of wealth management solutions, strategies and specialists to tackle any financial challenge, no matter how complex or unique. Morgan Stanley 13
Financial Plan Development Process Here s an example of the financial plan development process that we will utilize with your employees. Stages 1-2 Discovery: Establish and define relationship Gather information Stages 3-4 Analyze and evaluate information Stages 5-6 Develop and review recommendations Implement appropriate recommendations MonIToRIng: Checkups/reviews of employees situations relative to plan UpdATe FinanCIAL PLAn: for any major change on annual basis or as necessary based on individual circumstances engage with employee s tax provider and estate and trust attorneys: As required and authorized by designated employees Example Communications Calendar Q1 Month 1 Introductory Email Month 1 Spring Planning Email Month 2 Financial Education Seminar Invite: Q1 Month 3 On-Site Seminar. Leave With Post-Seminar Material Month 3 Follow-Up Seminar Email Q2 Month 4 Summer Money and Family Email Month 5 Financial Education Seminar Invite: Q2 Month 6 On-Site Seminar. Leave With Post-Seminar Material Month 6 Follow-Up Seminar Email Q3 Month 7 Fall-Retirement Email Month 8 Financial Education Seminar Invite: Q3 Month 9 On-Site Seminar. Leave With Post-Seminar Material Month 9 Follow-Up Seminar Email Q4 Month 10 Winter Philanthropy Email Month 11 Financial Education Seminar Invite: Q4 Month 12 On-Site Seminar. Leave With Post-Seminar Material Month 12 Follow-Up Seminar Email YeAR End Survey 14 Morgan Stanley
Workplace Wealth Solutions: Financial Education Syllabus Your employee s financial wellbeing is important to us. Through Morgan Stanley Workplace Wealth Solutions, we offer a suite of financial education focusing on a variety of topics to help your employee s make informed decisions about their personal finances. We can deliver this content via an in-person seminar, or alternatively, online The choice is yours. GOAL SETTING Define and prioritize your financial goals Understand your resources: preparing net worth statement and cash flow analysis Determine where you can cut back on spending and create a budget Recognize actions you can take to improve your financial wellbeing SAVING Rrecognize the importance of saving Make use of different saving strategies Evaluate different savings options for your short-term and long-term goals Take action and apply saving strategies to your personal finances CRedIT AND DEBT MANAGEMenT Describe ways to establish and maintain good credit Calculate, prioritize, and manage your debt Recognize the signs of identity theft and how to protect yourself Take action to improve your credit, debt management and identity protection Work with your Workplace Wealth Financial Advisor to design a financial education course of your company. TAX BASICS Understand where US tax dollars are allocated Identify the common IRS forms needed at each stage of the tax lifecycle Describe how income tax is generally calculated Consider common tax strategies to help you prepare for tax year-end Recognize the signs of tax-related identity theft and how to protect yourself Take action to prepare for future tax returns SecuRIng Your LeGACy Control who manages and receives your assets at your death Transfer a greater share of your assets to your beneficiaries by minimizing tax liabilities Protect your privacy Reduce administrative expenses and legal fees Provide your beneficiaries with wealth management continuity PLAnning for the UnexpeCTed Understand basic estate planning and insurance concepts Identify estate planning tools you can use to help protect yourself and your family Describe actions you can take to enhance your wellbeing and that of your family in the event of physical impairment or death Material Delivery In-Person Online Morgan Stanley 15
Choose a Fiduciary Wisely When making the decision on who to work with to build, maintain and enhance your retirement plan, it s important to align with a firm that has the size, strength and resources available to meet your needs today and in the future. Strong Financials $2.0 $149 3.5 Trillion in Assets Under Management 1 Billion in Deposits Through our Bank Deposit Program 1 Million Clients 2 $35.2 $7.7 Billion in Full Year Net Revenues 1 Billion in Earnings 1 1 Source: As of January, 19, 2016. Fourth Quarter Earnings. 2 Source: Morgan Stanley Business Analytics, as of June 30, 2014. 16 Morgan Stanley
Retirement plans represent a significant investment in your employees and in your organization. But getting them right amid an increasingly complex environment can be challenging. Strong Regulatory Oversight 250 40 470 3 3 3 Compliance Professionals Legal Professionals Risk Professionals Regular Inspections Surveillance & Technology Initiatives Regulatory Obligations Operations, Technology & Data Oversight by External Regulators 3 As of July 2015 Morgan Stanley 17
Integrated Solutions for You Our breadth of integrated solutions provides maximum flexibility so you may define the service model and level of discretion that best meets your organization s needs today and in the future. No matter what your challenges and goals, we have resources to deliver the solutions that you and your employees deserve. 1 Morgan Stanley Smith Barney LLC does not accept appointments nor will it act as a trustee, but it will provide access to trust services through an appropriate third-party corporate trustee. 2 Insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC s licensed insurance agency affiliates. 3 Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Financial Advisor to understand these differences. 18 Morgan Stanley
Your Executives Wealth Planning Corporate Insider Support Philanthropy Management Trust and Estate Planning Strategies 1, 2 Your Employees Financial Education Cash Management & Lending Products and Services Insurance Financial Planning 3 Retirement Planning College Savings Programs Your Organization Cash Investment Solutions Global Stock Plan Solutions Defined Contribution Plans Defined Benefit Plans Nonqualified Deferred Compensation Plans Employee Workplace Wealth Acquisition Financing Access to Capital Markets Mergers & Acquisitions Morgan Stanley 19
Asset allocation does not assure a profit or protect against loss in declining financial markets. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment, insurance and annuity products offered through Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED NOT A BANK DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY 2017 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 1783934 05/17 CS 8935030 08/17