Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
October 29, 2013

To the Participants of RSG
401(k) Update
Deficit Issues, Government
Shutdowns, Confusion on
Healthcare a...
From the history of the markets the S&P 500 posts a 12%
return, over the last 20 years due to the multiple
recessions that...
Answer: C… 4.25%
Think about that for a moment.
s

Most investors pay more for active management, with the expressed inter...
Agenda

s Market

s Q3

Focus Topic: Understanding Asset Allocation Funds

s The

4|

Update

Challenges Today for “Lookin...
Market Update

5|
Markets in 2013
STOCKS: YTD & 3 Year returns, Source – Morningstar.com (as of 10/23/13)
Broad US Stocks 25.6 % & 16.8 %
In...
Reminders for 2013
s Deferral

Limits:

$17,500 for 2013
$5,500 in catch-up contribution for participants 50 or older (Pla...
Emotions Matter (Source: Investopedia/market timing)

8|
Focus Topic: Understanding Asset Allocation Funds

9|
The Basic Idea…
s Reduce

the emotions of investing by incorporating a more auto-pilot
approach.
The issue of participant ...
Where are you on the risk/return discussion?

11 |
Risk Based
Note all TDFs are the same…
• Single fund family vs. multi-fund family
• Active vs. Passive
• The “Glidepath” D...
Results & Takeaways
s Know

What You Own

Risk or Age Based
Active or Passive
Static or Tactical
Glidepath
s When

It Work...
“Looking Ahead”

14 |
Looking Ahead
There are known knowns. These are things we know that we know. There
are known unknowns. That is to say, the...
Looking Ahead
s Managing

with high “Uncertainty”

Known unknowns – U1
Unknown unknowns – U2
s Key

Uncertainties (Source:...
Summary
s Market

Update

Strong Results, but Highly Concentrated
s Understanding

Asset Allocation Funds

Not All the Sam...
So What?
Where are you on Emotion Curve?

Key Take-Aways:
s

2013 limits are $17,500 ($23,000 with catch-up provision for ...
RSG Participant Support Team
We are here to help, 866-352-7731
1.

Elvia Sanchez, Senior Relationship Manager (Bi-Lingual)...
Upcoming SlideShare
Loading in …5
×

Q4 2013 participant review

323 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Q4 2013 participant review

  1. 1. October 29, 2013 To the Participants of RSG 401(k) Update Deficit Issues, Government Shutdowns, Confusion on Healthcare and Taxes… So of course the market is up! Presentation by: Steve Scott Managing Partner Retirement Solution Group, LLC “Securities offered through Ausdal Financial Partners, Inc, 220 North Main Street, Davenport, IA, 52801, 563.326.2064, member FINRA, SIPC. Advisory services provided by Ausdal 1Financial Partners. Retirement Solutions Group and Ausdal Financial Partners, Inc | are separately owned and operated companies.”
  2. 2. From the history of the markets the S&P 500 posts a 12% return, over the last 20 years due to the multiple recessions that rate is down to 8.21%. What has been the return for the average US equity investor over the last 20 years? (source: Dalbar) 9.7 % 8.21 % 4.25 % 2|
  3. 3. Answer: C… 4.25% Think about that for a moment. s Most investors pay more for active management, with the expressed interest of beating the market. s The scary part is this is better than the average investor return over longer periods of time. s The fees, expenses and the markets matter, but participant behavior matters more… s So why are we all trying to get it right this time? 3| Retirement Solution Group
  4. 4. Agenda s Market s Q3 Focus Topic: Understanding Asset Allocation Funds s The 4| Update Challenges Today for “Looking Ahead”
  5. 5. Market Update 5|
  6. 6. Markets in 2013 STOCKS: YTD & 3 Year returns, Source – Morningstar.com (as of 10/23/13) Broad US Stocks 25.6 % & 16.8 % International Developed Countries, (EAFE) 20.63 % & 8.4 % International Emerging Markets, (EM) 0.63% & - 2.06 % & - 2.21 % BONDS: YTD Core Bond, -0.76 % & 3.22% TIPS, YTD -5.86% & 3.43% Economic Reality Unemployment as of Q1 2013% • • 7.3% August 2013 Slight drop since last meeting Q2 2013 GDP growth = +2.5 % 6|
  7. 7. Reminders for 2013 s Deferral Limits: $17,500 for 2013 $5,500 in catch-up contribution for participants 50 or older (Plan dependent) 2014 rates should be available by mid-November Best Practices: 1. Save more! The 1% per year 401(k) raise rule. Understand Roth vs. Pre-tax 1. Know where you are invested 2. Know why you own what you own 3. Does your risk level match your investments? 7 | Retirement Solution Group
  8. 8. Emotions Matter (Source: Investopedia/market timing) 8|
  9. 9. Focus Topic: Understanding Asset Allocation Funds 9|
  10. 10. The Basic Idea… s Reduce the emotions of investing by incorporating a more auto-pilot approach. The issue of participant engagement 1995 v. 2009 v. 2013 Risk or age based Static or tactical 10 |
  11. 11. Where are you on the risk/return discussion? 11 |
  12. 12. Risk Based Note all TDFs are the same… • Single fund family vs. multi-fund family • Active vs. Passive • The “Glidepath” Debate: to or through??? 12 |
  13. 13. Results & Takeaways s Know What You Own Risk or Age Based Active or Passive Static or Tactical Glidepath s When It Works & When It Doesn’t Are you a Deb? Are you a Mike? 13 | Retirement Solution Group
  14. 14. “Looking Ahead” 14 |
  15. 15. Looking Ahead There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know. Donald Rumsfeld 15 | Retirement Solution Group
  16. 16. Looking Ahead s Managing with high “Uncertainty” Known unknowns – U1 Unknown unknowns – U2 s Key Uncertainties (Source: Silicon Bank) 63% of workforce is supporting economy • Lowest level since 1978 10% Economic Sector “Rewrites” Dodd Frank 2010 • • • 40% not written 32% unproposed 39% of deadlines missed “Obamacare” 2013 How much can DC Bend? • • • Shutdowns Interest rates & Fed policy Fundamental budget & deficit decisions 16 | Retirement Solution Group
  17. 17. Summary s Market Update Strong Results, but Highly Concentrated s Understanding Asset Allocation Funds Not All the Same s Looking Ahead Managing with Uncertainty 17 |
  18. 18. So What? Where are you on Emotion Curve? Key Take-Aways: s 2013 limits are $17,500 ($23,000 with catch-up provision for those over 50) s 2014 limits coming soon s What do you own and what is the strategy? Next Steps: s Save more – 12% target (Source: DOL) s Be more engaged s But not too engaged… “Investments involve risks and potential loss of principal and are not FDIC insured investments. Investments and investments in 401k plans are not guaranteed by the federal government or the FDIC, they involve risk including but not limited to loss of principal. Opinions expressed are those of Steve Scott and do not represent the opinions of Ausdal Financial Partners, or Retirement Solution Group, LLC. They are opinion only and should be not considered as stand alone advice.” 18 | Retirement Solution Group
  19. 19. RSG Participant Support Team We are here to help, 866-352-7731 1. Elvia Sanchez, Senior Relationship Manager (Bi-Lingual) x410 2. Christie Cheng, Senior Relationship Manager x310 3. Megan Dunne, Relationship Manager x200 4. Mary Urlich, Participant Transactions x1 5. Steve Scott, Managing Partner x 210 “Can you help me with my forms?” “I have no idea on these funds, can you help me with that?” “How much should I be saving?” “Not really sure if I am aggressive investor or not, how do I figure that out?” “What is a stock/bond?” “Why do people keep talking about Spanish Bonds Yields?” 19 | Retirement Solution Group

×