Founder Co-Founder Basis of Philosophies/Systems Task of Fulfillment Present Day Goals “Our advisors should be free to pursue their natural duty, which is tending to the needs of the client” -Kenneth G. Gulliver-Founder INTRODUCTION
“Our mission is to: Provide a client experience that far exceeds expectation” Kenneth G. Gulliver- Founder MISSION
Client Management Systems Financial Planning Software Proprietary Investment Strategies WHAT SET’S US APART
Who is advising you? What are your true fees? How are your assets managed? A typical experience Financial Variance Testing Who’s hands are you in? PIECES OF THE PUZZLE
Who is Retirement Depot™? Our fiduciary obligation Not all advisors are fiduciaries Who Retirement Depot™ is not 63% of investors think that brokers are legally required to act in the best interest of the client. 70% believe that brokers must disclose any conflicts of interest. -The Wall Street Journal WHO IS ADVISING YOU?
Everyone has the right to make a living What are you getting in return? “Hidden fees in the 401k” Effect of 1% additional fees “…Its estimated that the average 401k has fees upwards of 3%...” -Bloomberg-“The Hidden Fees in the 401k. February, 2008 WHAT ARE YOUR TRUE FEES?
COMMON FUND CLASSES Management Fees0.46% 12b-1 Fees1.00% Gross Expense Ratio1.68% 106% Turnover
Class “A” 5.75% Front 0% Back 0.25% 12b-1 Class ”B” Contingent Graded 1.0% 12b-1 Class “C” “No-load” 0% Back 1.0% 12b-1 COMMON FUND CLASSES
Transaction fees Taxes Economies of scale “…100% turnover would cause a drag in performance conservatively equal to 1.2% of the fund assets.” -John Bogle TURNOVER
Everyone transacts thru a clearing firm Fees vary on security type TRANSACTION FEES
Can I really lose money, yet still pay taxes? Fund has 30% gain by December 1 st You invest on December 1 st You lose (10%) ending the year Fund still gained 20% for the year You still share in gains TAXES
Why do we shop at Costco? Purchasing power begets savings Do fund managers get pricing breaks? Economics 101 Why use fund managers at all? ECONOMIES OF SCALE
Value of Indexing Cost Diversification Tax Advantages The case for indexing, 2-2011- The Vanguard Group Value of Active Management Research Anticipation of Trends Active Share Viewpoints, The value of active management, 4-2011- The Capital Group Companies HOW ARE YOUR ASSETS MANAGED?
Percentage of managers outperforming market during bull and bear cycles Top quartile active manager excess return before fees HOW ARE YOUR ASSETS MANAGED?
Most dangerous part of Mt. Everest Retiring is a game changer Chasing return is replaced by careful consideration Performance has many dimensions THE CRITICAL ELEMENT
Your current allocation Risk tolerance questionnaire Recommended allocation “…Past performance is no guarantee…” Typical Proposition “Control what you can, manage what you cant” A TYPICAL EXPERIENCE
Your Interests Financial Planning Portfolio Management Financial Questions Concerns Communication Advisor’s Interests Marketing Sales Continuing Education Compliance Other Clients WHO’S HANDS ARE YOU IN?
Senior Advisor Investment Advisor Client Service Representative Receptionist Marketing Director Special Teams Outsourced Teams YOUR RETIREMENT DEPOT™ TEAM
Client Acquisition Portfolio and Planning Process Client Maintenance HOW WE WORK TOGETHER
Hourly Flat fee Percentage of AUM The favored option FEES
Complete “Pre-Client” plan Identify shortfalls Copy/ re-title “Plan Recommends” Test multiple iterations Identify most optimal direction Recommends meeting Plan implementation Work Authorization to start! WHAT’S NEXT?