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Seminar on Social(k) the Socially Responsible 401(k). I now do business as Social Thread, not Hansen's.

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  • Social(k) is a paperless record keeping system for setting up and administering retirement plans. The program emphasizes the utilization of socially responsible mutual funds to allow employees to reflect their values in their investment choices. There are no proprietary products. This helps to assure advisors to the plan give objective recommendations of funds to use in the plan.
  • We couldn’t say is better ourselves, so the following article is an outsiders description of Social(k). Update over 100 SRI funds from over 20 families. August 22, 2005 Social(k) Allows Socially Responsible Investment Retirement Portfolios to More Fully Diversify     by William Baue at Social Funds , “ ExpertPlan administers a 401(k) platform that solves the problem of limited asset class diversification by offering 25 SRI funds from nine fund families than span the spectrum. -- Ever since the US Department of Labor ( DOL ) issued the 1998 " Calvert letter " allowing socially responsible investment (SRI) in company retirement plans covered by the Employee Retirement Income Security Act ( ERISA ), more and more 401(k) plans are adding SRI funds choices. All too often, however, plan administrators add just a smattering of SRI funds, making it difficult if not impossible to diversify SRI retirement portfolios across asset classes. Why not create a comprehensive platform offering a broad range SRI funds spanning the gamut of asset classes? That is exactly what Rob Thomas, a retirement plan consultant with [a national broker dealer], decided to do. Working outside his day job, he collaborated with ExpertPlan , a defined contribution retirement plan platform provider, to launch the Social(k ) Retirement Plan platform last week. "I have been working with companies for the past seven years providing a platform through ExpertPlan that has a small selection of SRI funds, similar to other platforms available in the market," Mr. Thomas told "We made the decision to increase the number of funds offered, and took existing technology from an established provider and built a better platform." Social(k) can be appropriate not only for individual employees wanting a full plate of SRI options, but also for companies practicing corporate social responsibility (CSR). "Today, many companies are working hard to be better corporate citizens--from recycling to energy conservation, from community involvement to corporate diversity, from shareholder advocacy to socially responsible investing, these companies look to make positive contributions to local and global communities," explained Mr. Thomas. "By offering a low-cost solution with a large number of SRI funds, we allow companies to put their money where their mouth is and employees a chance to align retirement assets with their beliefs." What distinguishes Social(k) is its breadth of SRI choices, offering 25 (update 100) funds from nine (update 20) fund families, including Calvert , Citizens , Ariel , Pax World , Domini , and Sierra Club , as well as SRI funds from mainstream firms such as AXA Enterprise , Neuberger Berman , and Alger . However, Social(k) does not limit its choices exclusively to SRI options. "ExpertPlan also offers about 30 regular fund families with over 300 (update 800) funds to pick from, including actively managed funds, index funds, and lifestyle funds--all no load or load waived since this is a retirement plan platform," said Mr. Thomas. Neither does Social(k) limit according to business size, or even according to classification as a business. "ExpertPlan has plans for companies of all sizes, from start ups to companies with over 1000 employees--any size works," said Mr. Thomas. "Nonprofits with ERISA-qualified plans are welcome as well." The Social(k) website provides access to mutual fund performance data and fact sheets, as well as links to fund prospectuses. When it comes to comparing mutual fund financial performance or social and environmental priorities, however, Social(k) recognizes its limitations by leaving this kind of consultation to financial advisors, such as those retained by companies to work with their employees. Social(k) does offer assistance in setting up plans. "Plan design and set-up is done with the help of the ExpertPlan team that includes an ERISA attorney on staff," Mr. Thomas said. "This is a fully bundled platform that includes the Third Party Administration work that plans need to have done annually, which is all done online and is very easy to manage, according to existing clients." In terms of expense, the plan is user-friendly for participants. "Transfers and exchanges can be made daily with no charge unless the funds are subject to short-term trading redemptions, which the platform will process on behalf of the fund family," said Mr. Thomas. Social(k) allocates expense primarily to plan providers, charging participants $40 per year but $950 annually to companies, as well as $750 to set up a new plan or $1,250 to convert an existing plan.”
  • THE DEAL A wide variety of socially responsible mutual funds and non-sri funds are available on the Social(k) platform. Unlike some retirement plans, mutual fund companies are not involved in the set-up or operation of the plan. This helps assure you receive objective recommendation of funds. Furthermore, under our fee-based agreement we receive no commissions – you simply pay a fee for our advice and help. This means your plan can have access to no-load fund like Citizens and Vanguard. The plan will typically be designed with a variety of options including actively managed funds, index funds, and lifestyle (or asset allocation) funds. We build model portfolios based on risk tolerance. This makes it easy for you and your employees to answer a few questions about risk and time horizon and get a suitable mix of funds. This can be done in just a few clicks, as we will see later in the presentation. Aside from ease and choice we offer our service. We want to work with you and each of your employees to build wealth and prosperity, to talk about goals and plans, and to fully utilize money to maximize your life’s purpose, meaning, and values. FUNDS AVAILABLE Here is a snapshot of the fund’s available in Social(k)* *Some comments regarding fund availability: 1) Your plan will not offer all these funds. We will narrow the list to a reasonable number of choices. 2) The following funds are offered by Social(k), but are not available from Cadaret Grant & Co. Inc.: Ava Maria, Jensen, Timothy Plan. Other availabilities may vary. 3) Assumes a fee-based advisory role for HFS. Refer to Cadaret Grant’s Form ADV Part II for full disclosures. Fund Families -------------------------------------------------------------------------------- ABN Amro Asset Management AIM AllianceBernstein Allianz Global Investors American Century American Funds Group Ariel AXA Enterprise Funds Bull Moose Calvert Group Catholic Funds Citizens Funds Columbia Management Services Conversion Assets CRAFunds Diamond Hill Investment Group Dodge & Cox Funds Domini Eaton Vance First American Investment Funds Forum Ivy Funds Jensen John Hancock Funds Kensington Funds Kinetics Mutual Funds Legg Mason Family of Funds Loomis Sayles Funds Luther King Capital Management MMA Praxis Neuberger Berman Old Mutual Pacific Life Funds Parnassus Investments Portfolio 21 Professionally Managed Portfolios RS Investments Schwartz Investments T. Rowe Price Funds Thornburg Funds Timothy Plan Funds Touchstone Investments Transamerica IDEX Mutual Funds Turner Funds Vanguard Group Victory Group Wells Fargo Funds Asset Classes -------------------------------------------------------------------------------- Money Market Mutual Funds Large Growth Large Value Large Blend Mid-Cap Growth Mid-Cap Value Mid-Cap Blend Small Growth Small Value Small Blend Short Government Intermediate Government Long Government Ultrashort Bond Short-Term Bond Intermediate-Term Bond Long-Term Bond High Yield Bond Multisector Bond Specialty-Communications Specialty-Financial Specialty-Health Specialty-Natural Res Specialty-Precious Metals Specialty-Real Estate Specialty-Technology Specialty-Utilities Domestic Hybrid Diversified Emerging Mkts Diversified Pacific/Asia Emerging Markets Bond Foreign Large Value Europe Stock Foreign Stock World Stock World Bond Pacific/Asia ex-Japan Stk Convertibles International Equity Foreign Large Growth Foreign Large Blend Foreign Small/Mid Growth Conservative Allocation Moderate Allocation World Allocation Target-Date 2000-2014 Target-Date 2015-2029 Target-Date 2030+
  • The first reason you might set up a plan is because you don’t have one. Maybe you’ve looked into it and felt overwhelmed with the choices, cost, and complexity. Or perhaps you felt like the investment choices you had would be in conflict with your mission and values. Setting up a 401(k) or 403(b) can be an ominous task. There is often a lot of paperwork involved. Maybe you already have a retirement plan, but you’re not happy with the service you are getting. Over time your organization probably has changed. You may have outgrown a SEP, or Simple plan. If your organization has grown, you may be considering a plan for the first time. If you have a plan you may be concerned about the fees and expenses. Some plans have high fees built in, and some take many hours of staff time to administer. Finally if you haven’t set up a plan you’re missing the chance to save up to $15,000/yr for employees and $44,000/yr for employers tax deferred (a problem I hope you all have!).
  • There are situations where a 401(k) or 403(b) may not be the best plan for you. This may be the case if your business is small (fewer than 10 employees), you have high employee turn over, or your management/owners receive significantly more compensation than the average employee. As part of the enrollment process we will help you determine what type of plan is most suitable. We can help you with a SEP, Simple, Profit Sharing, or other type of plan. Social(k) is not your only option. If $950/yr seems like too much money there are cheaper options, but for many people the benefits far exceed the costs. For a handy comparison of a few of the options check out this article at Of course if you like paperwork then a paperless plan probably isn’t best for you. Likewise, if you’re a technophobe then we should find something else for you.
  • Hansen’s Financial Services is a small, locally owned, independent firm. Our broker dealer Cadaret, Grant & Co. Inc. is also based in Syracuse. We have about 600 clients, mostly in Syracuse. Our office is in Fayetteville, NY. Susan Hansen founded HFS 20 years ago. She is a Certified Financial Planner (CFP) and an Accredited Investment Fiduciary (AIF). Brian Foster is a Certified Public Accountant (CPA). Jason Eaton has a background in Natural Resource Ecology and focuses on Socially Responsible Investing.
  • From Social(k)’s website: Successful companies are operating in a responsible and sustainable manner. Talented employees are drawn to these companies. When the time comes to plan for retirement, we offer a retirement plan aligned with employee values. Social(k) closes the loop. It is a defined contribution platform offering over 60 socially responsible mutual funds. ALIGN RETIREMENT ASSETS WITH CORPORATE & EMPLOYEE BELIEFS
  • From Expert Plan’s Website: ExpertPlan's recordkeeping system minimizes administrative burden and cost. An ExpertPlan 401(k) is available exclusively through leading financial professionals who will help define and set up a plan tailored to your needs, with minimal effort and time. Management and administration of the plan by both employee and employer is flexible, fast, reliable and easy.
  • Both Co-op America and the Organic Trade Association have joined Social(k) as marketing partners. These organizations have concluded that their members stand to benefit from knowing about and participating in Social(k). Via Heifer International, Social(k) donates one gift animal for each plan every year the plan is held with social (k). Social(k) donates 1% of sales to the planet.
  • As with any plan, mutual fund expenses are an important consideration to the total cost of the plan. Because of wide variety of funds available in the Social(k) platform, mutual fund expense ratios vary widely. In many cases we will include Vanguard funds as an investment choice, in part because of their low average expense ratio of 0.21% (expenses as a percentage of 2005 average net assets). We also include boutique funds like Winslow Green Growth Fund that have a 1.45% expense ratio. We think they earn their fees with great return potential (11.97% 5 yr average annual return as of 12/7/2006) and some of the most high impact social investments. PAST PERFORMACE IS NOT INDICATIVE OF FUTURE RESULTS. Understanding the myriad fees and expenses of a plan can be eye opening. We will do our best to clearly disclose all fees and expenses, even the ones we are not required to. In brief, here is an outline of the fees: HFS Advisory Fee: a flat 1% annually of AUM, billed quarterly. This is the only compensation we receive. There are no commissions, loads, or 12(b)-1 fees paid to us in this plan. We are paid the same no matter what investment products are used in the plan. Social(k) Record Keeping and Plan Fees: See the table above. Under the fee-based offering, Social(k) receives any 12(b)-1 fees paid by a fund. Typically this is about 0.25%. Mutual Fund Fees and Expenses: All mutual funds have management expenses. The amount varies widely from as low as 0.18% to over 2% per year. These expenses are significant in selecting funds as there is strong evidence that high fees cut into investor’s returns. When we select a fund with high expenses we do so believing that the fund’s returns, either financial or social, justify their fees. Furthermore, it is important to clarify that some mutual fund expenses, such as trading costs, are not included in the stated management expense ratio. These costs are disclosed in the Statement of Additional Information (SAI) which few people ever read. These costs also affect investor’s returns and while not altogether avoidable, some funds have higher trading costs than others. In particular, passive (or index) funds tend to have lower trading costs. Stated Returns: Fund performance information is reported net of all mutual fund fees and expenses. They are not reported net of HFS advisory fees, Social(k) fees, or taxes. If you have questions about fees, please ask. We want you to understand them.
  • To view a demo of the employer features: Go to Click on login User Name: skdemo Password: password Try it out!
  • To view a demo of the employee features: Go to Click on login User Name: skdemo1 Password: password Try it out!
  • Now let’s walk through the actual steps of setting up a new plan.
  • This will bring you to a page showing your current asset allocation (how much money is in what type of investments). The default is the money market fund.
  • You can answer a simple 10 question quiz to determine your risk tolerance and time horizon.
  • The system will suggest an appropriate mix of assets. You can see how being more or less aggressive will change your allocations. You can accept the changes, or…
  • You can customize your own portfolio.
  • Fill out this form and give it back to us and you’ll already be on to step 2!
  • Social(k) is a paperless record keeping system for setting up and administering retirement plans. The program emphasizes the utilization of socially responsible mutual funds to allow employees to reflect their values in their investment choices. There are no proprietary products. This helps to assure advisors to the plan give objective recommendations of funds to use in the plan.
  • Social(k)

    1. 1. Social (k) Profit with Principle
    2. 2. Disclosures <ul><li>Securities offered through Cadaret Grant & Co., Inc., member NASD/SIPC. </li></ul><ul><li>Hansen’s Financial Services, Cadaret Grant & Co., Inc., Social(k), and Expert Plan are separate entities. </li></ul><ul><li>Investing involves risk. You could loose money. There are no guarantees. Understand your risks, charges, and expenses. </li></ul><ul><li>Past performance is not indicative of future results. </li></ul><ul><li>Investment Advisory Services are offered through registered representatives of Cadaret, Gant & Co., Inc., a SEC registered investment advisor. </li></ul>
    3. 3. What?
    4. 4. What? <ul><li>401(k) </li></ul><ul><li>403(b) </li></ul><ul><li>Paperless </li></ul><ul><li>Easy online management </li></ul><ul><li>No proprietary products </li></ul>
    5. 5. What Funds?* Socially Responsible Funds Traditional Funds Under our fee-based agreement: All funds are no load or load is waived <ul><li>Active Funds </li></ul><ul><li>Index Funds </li></ul><ul><li>Lifestyle Funds </li></ul>* The following funds are offered by Social(k), but are not available from Cadaret Grant & Co. Inc.: Ava Maria, Jensen, Timothy Plan
    6. 6. Why?
    7. 7. Why? <ul><li>Situations where Social (k) might be GOOD for you </li></ul><ul><li>No retirement plan </li></ul><ul><li>You want to be socially responsible </li></ul><ul><li>Too much paperwork </li></ul><ul><li>Not satisfied with the service </li></ul><ul><li>Organization has changed </li></ul><ul><li>Current plan with high fees </li></ul><ul><li>Looking to reduce taxes </li></ul>Securities and investment advisory services offered through Cadaret, Grant & Co., Inc., a SEC registered investment advisor and registered broker/dealer member NASD/SIPC.
    8. 8. Why Not? <ul><li>Situations where Social (k) might NOT be good for you </li></ul><ul><li>You’d be better suited to another type of plan: SIMPLE, SEP, Profit Sharing, etc. </li></ul><ul><li>You can’t/won’t afford the costs </li></ul><ul><li>You like paper work </li></ul><ul><li>You don’t use computers much </li></ul>
    9. 9. Who?
    10. 10. Who? HFS <ul><li>Hansen’s Financial Services </li></ul><ul><li>Socially Responsible Investing </li></ul><ul><li>Financial Planning </li></ul><ul><li>Life coaching </li></ul><ul><li>Tax preparation </li></ul><ul><li>Accounting </li></ul><ul><li>Portfolio management </li></ul><ul><li>Estate planning </li></ul><ul><li>Retirement plans </li></ul><ul><li>Philanthropy </li></ul>Sue Jason Brian
    11. 11. Who? Social(k) Rob Thomas President, Social(k) 860-275-8058 [email_address]
    12. 12. Who? Expert Plan <ul><li>Record keeper </li></ul><ul><li>Third Party Administrator (TPA) </li></ul><ul><li>Technology provider </li></ul><ul><li>Plan expertise </li></ul><ul><li> </li></ul>
    13. 13. Who? Alliance <ul><li>Marketing Partners </li></ul><ul><li>Co-op America </li></ul><ul><li>Organic Trade Association </li></ul><ul><li>Giving Back </li></ul><ul><li>8.5% of Social(k)’s gross pre-tax profits are donated to charities such as: </li></ul><ul><li>1% for the Planet </li></ul><ul><li>Heifer International </li></ul>
    14. 14. How Much?
    15. 15. How much? Advisory Fee: 1% of Assets Under Management (AUM) Plans w/ over $1,000,000 in assets may negotiate reduced fees.
    16. 16. $500 Tax Credit?! <ul><li>The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) was created to allow small employers an income tax credit equal to 50% of the first $1,000 of administrative and retirement education expenses they incur for each of the first three years after the adoption of a new plan. </li></ul><ul><li>&quot;Small Employers&quot; are those with no more than 100 employees who received at least $5,000 of earnings in the proceeding year and have at least one NHCE (Non Highly Compensated Employee in the plan. </li></ul>The information presented is general in nature and should not be considered legal or tax advice. You should consult your legal or tax advisor for information concerning your own specific tax situation.
    17. 17. Benefits The information presented is general in nature and should not be considered legal or tax advice. You should consult your legal or tax advisor for information concerning your own specific tax situation.
    18. 18. 401(k) Benefits Source: Employer contributions usually take years to vest. Administration can be expensive. Cons Employee can contribute. Employee/employer contributions. Match not required. Pros Determined by employer. Determined by employer. Vesting $15,000 ($20,000 if you will be age 50 or older as of 12/31/06.) Combined employer and employee's contribution cannot exceed $44,000 ($49,000 if you are 50 or older). Contribution Limits Employees who worked at least 1,000 hours in the past year; two years, if no vesting period. Any business. Eligibility Employee Employers   401(k)
    19. 19. Benefits to Employer <ul><li>HFS Will </li></ul><ul><li>Help you decide the type of plan you need </li></ul><ul><li>Set up the plan </li></ul><ul><li>Educate and enroll employees </li></ul><ul><li>Provide periodic reviews and advice </li></ul><ul><li>Monitor investment performance </li></ul><ul><li>Assist in meeting fiduciary duties </li></ul>
    20. 20. Benefits to Employee <ul><li>HFS Will </li></ul><ul><li>Provide personalized advice </li></ul><ul><li>Provide 1-on-1 enrollment assistance </li></ul><ul><li>Lead group educational seminars </li></ul><ul><li>Be available to answer questions and make recommendations </li></ul><ul><li>Cell: 315-708-5791 (Call any time) </li></ul><ul><li>Email: </li></ul>
    21. 21. How it works
    22. 22. How? <ul><li>Suitability Meeting </li></ul><ul><li>RFP </li></ul><ul><li>Webinar </li></ul><ul><li>Payroll Set Up </li></ul>Summary of the Process
    23. 23. Employee Access
    24. 24. Social(k)
    25. 25. Social(k)
    26. 26. Social(k)
    27. 27. Be a DOGOODER
    28. 28. Review <ul><li>You Can Do Good and Do well </li></ul><ul><li>It’s Fast </li></ul><ul><li>It’s Easy </li></ul><ul><li>It’s Affordable </li></ul>
    29. 29. Getting Started First Name: Last Name: Your Company: Total Number of Employees: Your Address: Your City: Your State: Your Email: Your Phone: Tell us a little about the company: Do you currently have a retirement plan? No Yes If yes, what are its current assets? If yes, what is the approximate number of active participants?
    30. 30. Questions?
    31. 31. Social (k) Profit with Principal