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Gear Up For More 401(k) Rollovers Retirement Management Systems.

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Presentation on theme: "Gear Up For More 401(k) Rollovers Retirement Management Systems."— Presentation transcript:

1 Gear Up For More 401(k) Rollovers Retirement Management Systems

2 Retirement Management Systems Savings Plan Management An asset management program for 401(k), 403(b), and other Defined Contribution type accounts. Relationships Revenue Rollovers

3 Schwab: Participants who use advice see better outcomes 87% of the time. Financial Engines/Hewitt: Annual median returns for Help participants were 292 basis points higher than non-Help participants across the three year period. Schwab: Only 10% of employees who have access to professional advice actually take advantage of it. Retirement Management Systems Does Help Work?

4 Retirement Management Systems Dont have resources – Research for asset management – Back office for transactions and auditing – Administration for billing and statements Cant charge for it Dont want to take discretion Why Its not Offered by Advisors

5 Retirement Management Systems Custody …if password access provides the adviser with the ability to withdraw funds or transfer them to an account not in the clients name at a qualified custodian. ERISA Fiduciary …can become one simply by your actions, not withstanding anything in a written agreement. …providing advice to a participant, even without a contract to the plan, can cause the Advisor to be a plan fiduciary and subject to prohibited transaction rules. The Pitfalls

6 Retirement Management Systems Properly allocated portfolios based on their individual needs Timely rebalancing and reallocation changes – 13% of participants traded their accounts in 2009* Retirement goal setting Understanding of risk Discipline Advisors Add Value! What Help Do People Need? *How America Saves, Vanguard, 2010

7 Retirement Management Systems To empower independent financial advisors to provide a managed 401(k)/403(b) account solution for their individual and plan sponsor clients. Mission Statement

8 Retirement Management Systems Portfolio construction Transactions Account administration, including billing and data aggregation Marketing support RMS Provides the Tools

9 Retirement Management Systems Sales tips – Existing book review – Leverage executive relationships – Bundle into existing services (i.e., tax prep, financial planning) You Provide the Relationships

10 Retirement Management Systems Flat Fee (Based on Account Size) – Account Size < $250K - $240/Year $250-$500K - $360/Year > $500K- $480/Year – Billing monthly, quarterly, annually – Invoice or recurring- ACH (Checking Account) Billing Model

11 Retirement Management Systems Seminars Letters Flyers/Brochures Video Marketing Support

12 Retirement Management Systems SCM Advisors – # of SCM Registered Advisors-9 – # of Clients-1796 – SCM 401(k) AUM- $583,950, – Average Account Balance-$325, – Average of 401(k) Clients Per Active SCM Advisor-~200 Avg. SCM Advisor Pipeline AUM- $64,885, Scarborough Capital Management

13 Retirement Management Systems In-Service Withdrawal Opportunities

14 Retirement Management Systems Questions?

15 Retirement Management Systems Matt Keenum National Director of Business Development Contact Us

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