The document summarizes the state of the qualified retirement plan space in mid-2010. It discusses that markets have been volatile but not truly down for the year. Legislative changes have increased oversight and fee disclosure requirements. Plan designs are seeing more automatic enrollment and Roth options. The remainder provides case studies on situations involving a participant's market timing, the impact of suspending safe harbor contributions, and implementing a carve-out plan design. It encourages analyzing plans for customization and fiduciary support.

1. Mid-Year 2010, State of the Qualified Retirement Plan Space “Much Ado About Nothing” July 27, 2010 Presentation by: Steve Scott Managing Partner Retirement Solution Group, LLC “ Securities offered through Ausdal Financial Partners, Inc, member FINRA, SIPC. Advisory services provided by Ausdal Financial Partners. Retirement Solutions Group and Ausdal Financial Partners, Inc are separately owned and operated companies. ”

2. Agenda Who Is RSG? State of the Industry Case Studies Next Steps

3. Who Is RSG?

4. Retirement Solution Group, LLC This is our CORE business. Retirement Plan consulting firm Administers over 300 plans Co-Fiduciary on more than $150,000,000 Participant Services for more than 8000 participants 2 federally enrolled actuaries on staff 2 on-Staff enrollment & education support available (Spanish speaking available) We are fully independent Regional offices in Chicago, New England and Florida (business in 22 states) Members of NIPA, ASPA and CFDD 99% (+) of firm revenue comes from qualified retirement plan related business Retirement Solution Group 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.

5. Definition of a “Fiduciary” You are a fiduciary of an employee benefit plan if you meet any one of the following tests: You exercise discretionary authority or control over plan assets or plan management - “Functional Fiduciary” You are specifically identified in the written documents of a plan as a “Named Fiduciary” You have discretionary responsibility in the administration of the plan. You manage the plan or its assets or render investment advice for a fee.

6. Roles & Responsibilities of Plan Fiduciary Retirement Solution Group Through an efficient delivery model, we offer a variety of solutions to your retirement plan. The roles and responsibilities must be clear and explicit. Accountability is key. Client Independent Pension Consulting Services Investment Co-Fiduciary Benchmarking Conflicts of Interest Investment Policy Statement (IPS) Adherence to IPS Education Cost Breakdown Prudent Man Standard Investment Related Expenses Support Related Expense PERA Opportunities Investments, Recordkeeping, and Participant Services Technical Proper valuation work Tax and relevant government filings Plan Document and SPD compliance Methodologies Best Practices

7. State of the Industry

8. State of the Industry: Markets Equities: Remain volatile, but improperly categorized by many as “down” DJIA, +1.47% YTD & 18.14% 1-year S&P 500, -0.04% YTD & 15.25% 1-year S&P Midcap 400, +5.87% YTD & 25.42% 1-year Russell 2000, +4.72% YTD & 20.75% 1-year EAFE USD, –6.42% YTD & 7.7% 1-year EM USD, –0.81% YTD & 19.38% 1-year Fixed Income: Still attractive from a risk standpoint, but yields are no where near the levels of last year during early stages of economic recovery Morningstar Core Bond, +5.75% YTD & 9.07% 1-year US T-Bill Auction, +0.06% YTD & 0.12% 1-year Source: Morningstar.com (all returns as of 7/23/10) Retirement Solution Group

9. State of the Industry: Legislative From Washington: More oversight Financial Regulations Bill Increased Fee-Disclosure Increased Conflicts Disclosure More auditors EFAST 5500 Filings Question of Fiduciary Seems Next FINRA: Still attractive from a risk standpoint, but yields are no where near the levels of last year during early stages of economic recovery More Proactive Investment Complaint Center Participant Advice Retirement Solution Group

10. State of the Industry: Plan Design DC Plans : Meaningful, yet low cost, changes seems to be trend 59% offer auto-enrollment in 2009 Additional 12% of remainder stated “Very Likely” for change in 2010 29% offer ROTH feature Additional 12% of remainder stated “Very Likely” for change in 2010 46% “Very Likely” to review operational changes and/or vendors in 2010 DB Plans: Taking the next step 9% will close Plan to new entrants 64% plan on doing funding projections 34% plan on reviewing funding strategies 80% rank “managing risk” as high priority Source: Hewitt 2010 Retirement Survey Retirement Solution Group

11. Case Studies

12. Case Study: Participant Market Timing Situation: 62 year old participant goes aggressive during recovery of 2009 and Q1 2010. In the late June sees the markets drop below 10,000 in DJIA. Believes second dip is coming, goes to cash. Complication: Market does immediately drop an additional 300 in DJIA on first two days of July. But then rallies past 10,000 on July 7 th . Result: Sitting in cash at a present value estimated loss of 4.5% based on DJIA. VIX at historic highs. Retirement Solution Group

13. Case Study: Education Matters Situation: Manufacturing company has many hourly and bi-lingual workers. Due to economic conditions, suspends Safe Harbor in 2009. Complication: The HCEs were used to participating at a max-out rate, and the original Plan of suspending Safe Harbor caused some panic and a large decrease in deferral rates. Result: RSG worked with HR and management on creating an educational campaign called “The Bridge.” Greatly reduced the impact of the suspensions, and thus HCE refunds. 2010 we enacted “Maybe Safe Harbor” which is scheduled to be enacted in December 2010. Retirement Solution Group

14. Case Study: Designed Based “Carve-Out” Situation: Doctors group had Money Purchase Plan, which they maximized to the DC limit, and had to give a flat allocation to all staff. Complication: Doctors had significant HCEs and payroll, and they needed a bigger deduction. Plus, they wanted to give a fair, but not flat staff contribution. Result: By implementing a “Carve-Out” plan design solution we offer the senior doctors an additional $165,000 deduction via Cash Balance Plan. The 401(k)/Profit Sharing Plan is both cross tested for group allocation and for coverage testing, and lowered their average staff contribution from 10% to 7.5%. No staff or non-owners are regular participants in the Cash Balance Plan. In addition, the Cash Balance Plan is individually allocated so that each doctor can decide appropriate allocation level. Note 40% coverage. Retirement Solution Group

15. Next Steps

16. Summary Who Is RSG? Core Competency Markets Rudderless Ship Case Studies H&R Block vs. CPA Solution

17. So What? Is Your Plan Customized for Participants: Investment Review Offense or Defense The Plan Beneficiaries Is Your Plan Customized for Plan Sponsors: Tax Maximization Design Fiduciary Oversight There are a lot of retirement plan voices, mostly sales people. There are very FEW qualified pension consultants. Retirement Solution Group “ Investments involve risks and potential loss of principal and are not FDIC insured investments. ”

18. How do you, and your clients, fair? Run a free Plan analysis to look at Plan maximization and fiduciary oversight. RSG is always available, 866-352-7731 Steve Scott, Managing Partner x 21 Scott Emering, Partner x11 Ed Emering, Partner/FSA Cynthia Baldwin, FSA Julie Yanez, Administrator Bob Kibble, Administrator Christie Cheng, Education & Relationship Manager Elvia Sanchez, Education & Relationship Manager (Spanish speaking) Katy Janovsky, Office Management Ric Gazarian, Consultant Retirement Solution Group