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"The difficulty lies, not in the new ideas, but in
escaping from the old ones.” John Maynard Keynes
Invest n Retire® 1
Companies that did not adopt new ideas
Blockbuster, Motorola, Dell, Kodak, Sears, Sony, Yahoo
Invest n Retire® 2
The future of the
financial industry
Invest n Retire® 3
The future is ETFs
Invest n Retire® 4
Exchange Traded Funds Market
Exchange Traded Funds (ETFs) pulled in $351.3 billion in net new money
in 2016. Global ETF as...
Death of Mutual Funds Accelerates
The mutual fund is dead and the ETF is ascendant.1
Charles Schwab earned $839 million la...
Mutual Fund Predictions
The dirty little secret which enriches the mutual fund
industry. Almost all 401(k) investments are...
State of the 401(k) Industry
Invest n Retire® 8
The Future of
401(k)Plans
Invest n Retire® 9
401(k) plans - ETFs
“The retirement industry has been suspended in a time warp, operating on
antiquated systems developed ...
Value to investment managers
TandemModels® SaaS technology
enables investment managers to
design diversified portfolios us...
Self-Aligning Portfolios®
The advantages of self-aligning
portfolios:
(a) maximizes the investment
strategy dollar-cost-av...
Value to sponsors
Reduce sponsor fiduciary risk
Hire an ERISA §3(38) investment manager
Compliant with new fee disclosure
...
Value to sponsors
Substantially reduce costs and administrative burdens
Invest n Retire® 14
Value to participants
Provide an adequate portfolio for retirement income
Invest n Retire® 15
Value to participants
Provide a professional managed portfolios
Increase returns by using lower cost ETFs
Match retirement...
Greatest risk to participants
“The greatest risk for American workers is not down
market or market volatility but not havi...
401(k) Plans in Crisis
Invest n Retire®
disruptive technology
Invest n Retire® 19
Exceeding the challenge
New ideas are your future
Invest n Retire® 20
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Managing ETF Portfolios in 401(k) Plans

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Managing ETF Portfolios in 401(k) Plans

  1. 1. "The difficulty lies, not in the new ideas, but in escaping from the old ones.” John Maynard Keynes Invest n Retire® 1
  2. 2. Companies that did not adopt new ideas Blockbuster, Motorola, Dell, Kodak, Sears, Sony, Yahoo Invest n Retire® 2
  3. 3. The future of the financial industry Invest n Retire® 3
  4. 4. The future is ETFs Invest n Retire® 4
  5. 5. Exchange Traded Funds Market Exchange Traded Funds (ETFs) pulled in $351.3 billion in net new money in 2016. Global ETF assets were $2.9 trillion in December 2016.1 September 2016 actively managed funds lost $170 billion over the last 12 months.2 PWC has predicted that global ETF assets will increase to $5 trillion by 2020.3 1 BlackRock Global Highlights January 2016 2 Investment Company Institute® 3 2015 Mutual Fund Developments PWC Invest n Retire® 5
  6. 6. Death of Mutual Funds Accelerates The mutual fund is dead and the ETF is ascendant.1 Charles Schwab earned $839 million last year from its lucrative Mutual Fund OneSource program. And yet, ETFs outpolled mutual funds for net inflows 130-to-1 last year among Schwab's’ customers. 2 Over the past six years, ETFs have pulled in more than $1 trillion in net inflows while mutual funds haven’t managed to attract $200 million.3 1 ETF.com Hougan: Death of Mutual Funds Accelerates August 2015 2 Ibid. 3 Ibid. Invest n Retire® 6
  7. 7. Mutual Fund Predictions The dirty little secret which enriches the mutual fund industry. Almost all 401(k) investments are mutual funds.1 1 ESA Intergrated Marketing Invest n Retire® 7
  8. 8. State of the 401(k) Industry Invest n Retire® 8
  9. 9. The Future of 401(k)Plans Invest n Retire® 9
  10. 10. 401(k) plans - ETFs “The retirement industry has been suspended in a time warp, operating on antiquated systems developed in the ‘80s. With our patented technology Investment Managers no longer have to be constrained and can move forward with modern technology to provide managed portfolios and superior investments – ETFs.” Darwin Abrahamson, CEO Invest n Retire® 10
  11. 11. Value to investment managers TandemModels® SaaS technology enables investment managers to design diversified portfolios using ETFs. TandemModels® is delivered in a single platform for model design and management, trading, portfolio re-balancing, and performance reporting. Professional Management Employees are defaulted to an asset allocation model (AAM), designed by a investment manager, contrasts drastically from the typical service provider who force employees to choose from numerous mutual funds. Invest n Retire® 11
  12. 12. Self-Aligning Portfolios® The advantages of self-aligning portfolios: (a) maximizes the investment strategy dollar-cost-averaging (b) mitigates risk in all market environments by maintaining portfolio alignment (c) less trading at the end of each quarter to bring the portfolio into alignment Invest n Retire® 12
  13. 13. Value to sponsors Reduce sponsor fiduciary risk Hire an ERISA §3(38) investment manager Compliant with new fee disclosure regulations Remove all revenue sharing and 12b1 fees and multiple fund classes Reduce total cost to participants by up to 50% compared to mutual funds Invest n Retire® 13
  14. 14. Value to sponsors Substantially reduce costs and administrative burdens Invest n Retire® 14
  15. 15. Value to participants Provide an adequate portfolio for retirement income Invest n Retire® 15
  16. 16. Value to participants Provide a professional managed portfolios Increase returns by using lower cost ETFs Match retirement income goals to portfolio Invest n Retire® 16
  17. 17. Greatest risk to participants “The greatest risk for American workers is not down market or market volatility but not having an adequate retirement income.” Frank Sortino Invest n Retire® 17
  18. 18. 401(k) Plans in Crisis
  19. 19. Invest n Retire® disruptive technology Invest n Retire® 19
  20. 20. Exceeding the challenge New ideas are your future Invest n Retire® 20

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