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

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

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?

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

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

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

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

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

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

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

Retirement Management Systems Seminars Letters Flyers/Brochures Video Marketing Support

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

Retirement Management Systems In-Service Withdrawal Opportunities

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