B2B webinar Q1 2011


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B2B webinar Q1 2011

  1. 1. April 28, 2011<br />State of the 401(k), Q 1 2011 for Strategic Partners, Business Owners and Business Advisors <br />Presentation by:<br />Steve Scott<br />Managing Partner<br />Retirement Solution Group, LLC<br />
  2. 2. Agenda<br />Who Is RSG?<br />What Happened<br />What Are the Impacts<br />Next Steps<br />
  3. 3. Who Is RSG?<br />
  4. 4. Retirement Solution Group, LLC<br />All decisions are made in the best interest of participants per ERISA. We adhere to the DOL guidelines on participant reporting and ensure that full disclosure be present throughout. <br /> This is our CORE business.<br />Retirement Plan consulting firm<br />Administers over 250 plans<br />Co-Fiduciary on more than $200,000,000<br />Participant Services for more than 8000 participants<br />2 federally enrolled actuaries on staff <br />2 on-staff enrollment & education support available (Spanish speaking available)<br />We are fully independent<br />Regional offices in Portsmouth, Chicago, and Florida (business in 22 states)<br />Members of NIPA, ASPA and CFDD<br />99% (+) of firm revenue comes from qualified retirement plan related business<br />Retirement Solution Group<br />
  5. 5. Definition of a “Fiduciary”<br /> You are a fiduciary of an employee benefit plan if you meet any one of the following tests:<br />You exercise discretionary authority or control over plan assets or plan management - “Functional Fiduciary” <br />You are specifically identified in the written documents of a plan as a “Named Fiduciary”<br />You have discretionary responsibility in the administration of the plan.<br />You manage the plan or its assets or render investment advice for a fee.<br />
  6. 6. What Happened?<br />
  7. 7. Back to Work…<br />From November’s 2010 US jobless rate according to USBLS 9.8%<br />As of March 2011 the same governmental organization shows a current rate of 8.8%<br />January surge<br />Normal cycle <br />2011 cycle<br />
  8. 8. International Waters get Choppy<br />Situation: Egypt shows political unrest as street revolution forces Mubarak out of office. <br />Complication: Mubarak has been in power for roughly 30 years, and with his party having control of legislators there was uncertainty if there would be a fair transition of power and if extremists would destabilize region.<br />Result: While it is too certain to look at long-term impact, the short-term transition has gone substantially better than most would have guessed. Elections are scheduled and economies have seen stability. Military’s role key.<br />Retirement Solution Group<br />
  9. 9. International Waters get Choppy<br />Situation: Rebels in Libya use inertia of Egypt, Iran and Tunisia and make massive anti-government movements.<br />Complication: Here the military did not stay out of it, and for the most part has remained loyal to Gaddafi’s regime. <br />Result: Libya remains in what appears to be the early stages of a civil war. This has created unrest in the region, affected oil prices, this impacts economy recovery and sees the return of our old friend the I word – inflation.<br />Retirement Solution Group<br />
  10. 10. International Waters get Choppy<br />Situation: Massive Tsunami hits Japan and causes substantial damage.<br />Complication: Amongst that massive damage, a nuclear reactor gets impacted significantly and causes rods to fuse. <br />Result: The Japanese and many Asian markets fell substantially in the wake. Concerns began to rise over global consumption. Nuclear containment issues causing significant concern to not only Japan, but China, Korea, and other neighbors. <br />Retirement Solution Group<br />
  11. 11. Keys to Financial Success: Investing Basics<br />Know what you are invested in:<br />Stocks – Ownership<br />Bonds - Debt <br />Asset Class – Common type of securities with common attributes<br />Growth – Investment style where the focus is on earnings/share price increase<br />Value – Investment style where focus is on devalued companies<br />Capitalization – Share Price x Number of Shares = Size/Market Cap<br />Attend Quarterly RSG Webinars: April 26, 2011 <br />Next one, July 26, 2011<br />Retirement Solution Group <br />
  12. 12. Section 408 b(2)<br />New Fee disclosure rules becoming mandated in January 2012<br />Requiring Plan Sponsors to provide fee disclosure to its participants is nothing new. RSG has proactively provided participants with information on their particular fee structures in newsletters and statements but if you would like to discuss your account please contact us<br />Your Plan Costs (SAMPLE):<br />Average Mutual Fund – 0.94 %<br />Asset Based Fee – 0.07 %<br />John Hancock Recordkeeping Fee – 0 <br />CDSC – 0 <br />Additional Advisory Fees – 0.25 %<br />Redemption Fees – See attachment <br />Retirement Solution Group <br />
  13. 13. What Is Result?<br />
  14. 14. What is Result<br />US Markets: Experience mid February – mid March volatility but overall remain bullish. “Prettiest pig at the fair.”<br />S&P 500 = 5.92 % Q1 & 15.65% 1 Year<br />Russell 2000 = 7.94 % Q1 & 25.8% 1 Year<br />International Markets: Prior to Q1 unrest, overseas markets were key drivers to global recovery. Especially in emering markets. So what’s next?<br />Lipper International = 2.5% Q1 & 12.75% 1 Year<br />Bonds: Remain sluggish but cause for much new discussion as we seen change in demand, interest rate environment and risk measurements.<br />Barclay’s Capital Gov’t/Corporate Bond Index = 0.28% Q1 & 5.26 % 1 Year<br />Retirement Solution Group<br />
  15. 15. The New “New” Reality?<br />Situation: Some worry of a perfect storm in bond markets as interest rates remain low, credit qualities have more downward pressures and QE2 comes to an end. <br />Complication: The US government and the “Quantitative Easing” program has created a false demand for US bonds. This is scheduled to end in June of 2011.<br />Result: Unknown… For now risk and returns for bonds are off normal trends. But the real question is what happens in rest of 2011 – 2012.<br />Retirement Solution Group<br />
  16. 16. 2011 IRS Limits<br />No change to Employee Elective Deferral limits<br />$16,500 for 50 and under<br />$22,000 for 50 and over<br />IRA Limits in 2011<br />$245,000 maximum compensation limit<br />$110,000 definition of Highly Compensated Employee (HCE)<br />Note: owner, ascendant and descendant rules still apply<br />$49,000 as DC limits<br />$195,000 as DB limits<br />Strategy Evaluation<br />When was the last trustee review and fiduciary oversight/liability analysis?<br />When was the last employee education and documented 404(c) compliance meetings?<br />When was the last time plan design was reviewed to see if benefits are properly structured?<br />Retirement Solution Group<br />
  17. 17. Is Your Retirement Benefit Still a Benefit?<br />Outsourced Sales Company<br />The “SIMPLE” Consultant<br />The Association VCP <br />The Return of M&A Activity <br />
  18. 18. Summary<br />Who Is RSG?<br />We are truly independent<br />What Happened<br />Stronger than expected results and global “Events”<br />What Are the Impacts<br />We may be going through a economic transition… <br />Next Steps<br />
  19. 19. So What?<br />“No One Here is Going to Fix That Nuclear Plant…”<br />You CAN Fix These Problems: <br />Manage Fiduciary Liability<br />Review your plan design<br />Anticipate the S&P “gaffe” days (April 18, 2011) <br />Conduct educational meetings<br />Next Steps: <br />Analyze Situation<br />Select a Path<br />Create a Retirement Plan Calendar<br />Retirement Solution Group<br />
  20. 20. RSG Support Team<br />RSG is always available, 866-352-7731<br />Steve Scott, Managing Partner x 21<br />Scott Emering, Partner x11<br />Ed Emering, Partner/FSA<br />Cynthia Baldwin, ASA<br />Julie Yanez, Sr. Pension Consultant<br />Bob Kibble, Pension Consultant<br />Christie Cheng, Education & Relationship Manager (Bi-Lingual) x31<br />Elvia Sanchez, Education & Relationship Manager (Bi-Lingual) x41<br />Megan Dunne, Associate<br />Dawn Vazquez, Associate x 51<br />Retirement Solution Group<br />