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Brighton Financial Planning, Inc.

                     Investment Management
                                &
          ...
Brighton Financial Planning, Inc.

• 25 year old organization
    – Local firm based in Clinton


• Emphasis on investment...
Investment Management

• Develop Investment Policy Statement
   – Acts as the guide for expectations and decision-making
 ...
Investment Advisory Services

• Endowment and Cash Management
    – Establish an investment policy statement
        • Sam...
Investment Advisory Services

• Retirement Plans
    – Investment Policy Statement
        • Often neglected but a valuabl...
Investment Policy Statement

• Benefits
   – Documents sponsor’s decision making process

   – Defines how the plan will m...
Plan Design and Implementation

• Which plan?
   – 401k
       • Defined contribution plan
                  Employee cont...
Plan Design and Implementation

• 457 Plans (often referred to as “Top-Hat” plans)
        Non-qualified
    –
        Onl...
Plan Design and Implementation

• Necessary vendors
   – Third Party Administrator and Record-keeper
       • Handles all ...
2009 Pension Plan Limitations

• Maximum employee contribution = $16,500

• Annual compensation limit = $245,000

• Key em...
Considerations

• Which plan is best for a client?

• Has an investment policy statement been written and/or updated?

• A...
Communication

• Website
   – DC Plan – client account access
   – Endowment – client account access & client portal acces...
Why retain an Advisor?

• Create and/or modify existing investment policy statement
    – DC Plan and Endowment

• Review ...
Why Brighton?

• Experience
   – I have over 16 years financial services industry experience
   – Individual and Instituti...
John P. Middleton, CFA, CAIA Curriculum Vitae

• 2001 – 2008 – Invesco Quantitative Strategies Group, Invesco
    – Senior...
CV Continued

• 1999 – 2001 Mutual of America Capital Management
   – Senior Vice President and Officer
        • Responsi...
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Bfp Presentation For Linked In

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Transcript of "Bfp Presentation For Linked In"

  1. 1. Brighton Financial Planning, Inc. Investment Management & Advisory Services Brighton Financial Planning, Inc.
  2. 2. Brighton Financial Planning, Inc. • 25 year old organization – Local firm based in Clinton • Emphasis on investment management, advisory and estate/financial planning – Extensive experience working with both individuals and institutions • 3 Advisors with average experience of 30 years – Advisors possess the CFP or CFA designations – 2 advisors have advanced degrees in business and finance • High commitment to client service • Fee-only – Asset based fee, hourly advisory fees and/or flat rate for planning services 2 Brighton Financial Planning, Inc.
  3. 3. Investment Management • Develop Investment Policy Statement – Acts as the guide for expectations and decision-making • Components of IPS: Purpose of IPS – Risk and return expecations – Asset allocation (if applicable) – Methodology for investment selection – Approach to ongoing performance measurement – • Discretionary Management – Define asset allocation • Determined in conjunction with our clients • Strive to meet client needs/expectations while acknowledging potential limitations • Incorporate alternative assets when appropriate • Select investments – Emphasis is on open and closed-end mutual funds and ETFs • Monitor/report/adjust asset allocation and investments – Frequency is client specific 3 Brighton Financial Planning, Inc.
  4. 4. Investment Advisory Services • Endowment and Cash Management – Establish an investment policy statement • Same rationale as for retirement plans • Acts as the guide for expectations and decision-making – Components of IPS: Purpose of IPS • Risk and return expecations • Asset allocation (if applicable) • Methodology for investment selection • Approach to ongoing performance measurement • – Advisory/Management Write IPS • Define asset allocation • Select investments • Monitor/report/adjust asset allocation and investments • 4 Brighton Financial Planning, Inc.
  5. 5. Investment Advisory Services • Retirement Plans – Investment Policy Statement • Often neglected but a valuable tool – Plan Design & Implementation What type of plan – 401k, 403b, 457, other non-qualified options • Third Party Administrator • Custodian • Investment Selection • Educational Services • – Ongoing Service • Education for participants • Managing relationship with vendors • Reporting to plan sponsor (Board) 5 Brighton Financial Planning, Inc.
  6. 6. Investment Policy Statement • Benefits – Documents sponsor’s decision making process – Defines how the plan will meet ERISA 404a or 404c requirements • 404a requires plan sponsors to act at the level of a knowledgeable investor when selecting investment options • 404c covers plan participant protections 1) Implement an investment policy statement – 2) Inform participants of intent to comply (done in plan summary document) – 3) Provide quality investment education – 4) Allow participants to make regular investment changes – – Ensures that decisions are driven by long-term perspectives – Defines expectations for risk and return objectives 6 Brighton Financial Planning, Inc.
  7. 7. Plan Design and Implementation • Which plan? – 401k • Defined contribution plan Employee contributions – Empoyer contributions optional (mandatory in Safe Harbor 401k) – Eligibility no later than 1st anniversary of service – Vesting can be structured – Variety of investment options – Loans can be possible – Hardship withdrawals are possible – – 403b New rules move 403b closer to 401k structure • 501c3 eligible • Exempt from ERISA under certain conditions • Not subject to discrimination testing • Universal availability • 7 Brighton Financial Planning, Inc.
  8. 8. Plan Design and Implementation • 457 Plans (often referred to as “Top-Hat” plans) Non-qualified – Only available to highly compensated employees – Can be established along side a 403b or 401k – Cannot have loan provisions – • SIMPLE 401k – For organizations with fewer than 100 employees – Employee contribution limit of $11,500 – Employer MUST contribute • Which plan is best for a client will depend on: – 1) Expected participation – 2) Degree of desired management involvement – 3) Degree of flexibility desired 8 Brighton Financial Planning, Inc.
  9. 9. Plan Design and Implementation • Necessary vendors – Third Party Administrator and Record-keeper • Handles all procedural requirements Enrollment – Statements – Website – Cashflows – DOL/ERISA Compliance – • Brighton uses ExpertPlan – Ranked among top TPAs (#2 recordkeeper in CFO Magazine’s 2008 401k Provider’s Buyers Guide) – www.expertplan.com – Custodian • Holds all plan assets • Maintains separate account for each participant • Brighton uses either Charles Schwab or Matrix Group 9 Brighton Financial Planning, Inc.
  10. 10. 2009 Pension Plan Limitations • Maximum employee contribution = $16,500 • Annual compensation limit = $245,000 • Key employee compensation = $160,000 • Highly compensated employee (HCE) = $110,000 • Catch-up provision (over 50 years old) = $5,500 • Maximium contribution (all sources) to DC plan = $49,000 10 Brighton Financial Planning, Inc.
  11. 11. Considerations • Which plan is best for a client? • Has an investment policy statement been written and/or updated? • Are investment options well diversified? • Are employees fully participating in the plan? • Are current educational offerings adequate? • Is endowment well diversified? • Is the allocation sensible and in adherence with IPS? 11 Brighton Financial Planning, Inc.
  12. 12. Communication • Website – DC Plan – client account access – Endowment – client account access & client portal access • Monthly Bulletin – Email – provides markets/economic commentary and topical features • Survey – Initial and ongoing survey to ensure highest quality client service – Initial survey results will be used to build introductory presentations • Meetings – On-going, at least semi-annually to update participants on DC plan – As requested to update management and Board on Endowment/Cash 12 Brighton Financial Planning, Inc.
  13. 13. Why retain an Advisor? • Create and/or modify existing investment policy statement – DC Plan and Endowment • Review and revise plan investment options – Focus on well diversified, reasonable cost mutual fund options – Average expense ratio for sample plan shown in appendix is 0.87% • Improve educational sessions – Focus on: • Investment principles • Value of tax-deferral • Investment options • Enable team to focus on business activities – Fiduciary responsibilities remain – I will provide frequent updates and will present to the Board as needed 13 Brighton Financial Planning, Inc.
  14. 14. Why Brighton? • Experience – I have over 16 years financial services industry experience – Individual and Institutional experience • Understand the objectives and expectations of DC plan participants • Understand the objectives and expectations for endowment assets – Experienced at adjusting presentation to meet sophistication of audience • Service – We stress client service as a differentiating feature – Available as often as needed – phone, email, in-person • Local – We are a part of the same community – Easily accessible – We will work hard for you 14 Brighton Financial Planning, Inc.
  15. 15. John P. Middleton, CFA, CAIA Curriculum Vitae • 2001 – 2008 – Invesco Quantitative Strategies Group, Invesco – Senior Director and Client Portfolio Manager • Managed over 50 institutional relationships with over $2 billion in assets • Strategies included: – Long-only domestic and global equity – Absolute Return Strategies • Clients included: Endowments and foundations – Public and corporate pension funds – Taft-Hartley plans – Investment Companies (DIA and Invesco AIM) – • Responsibilities included: Advising plan sponsors and consultants regarding performance and market trends – Researching and writing white papers on investment topics – Competitive analysis – Marketing support including finals presentations and public speaking engagements – 15 Brighton Financial Planning, Inc.
  16. 16. CV Continued • 1999 – 2001 Mutual of America Capital Management – Senior Vice President and Officer • Responsibilities included: – Initiating marketing to plan sponsors and consultants – Competitive analysis • 1992 – 1999 Raymond James Financial – Head of Marketing and Client Service – Awad Asset Management • Responsibilities included: – Managing all client relationships for a $1 billion small cap manager – Managing a small cap growth fund • Education/Designations MBA – Finance, University of Tampa – BA – Rutgers University – Chartered Financial Analyst – Chartered Alternative Investment Analyst – 16 Brighton Financial Planning, Inc.
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