The document summarizes a presentation given by Steve Scott of Retirement Solution Group (RSG) about the state of 401(k) plans in Q1 2011. It discusses who RSG is, recent market events, factors being monitored, and advice for plan participants. RSG is an independent retirement plan consulting firm that administers over 250 plans. The presentation reviews unemployment trends, market performance in 2011, concerns over European debt and the US debt ceiling, and recommends that participants save more and review their asset allocations during this volatile period.

1. July 26, 2011State of the 401(k), Q 1 2011 for Participants of Plans Under RSG OversightPresentation by:Steve ScottManaging PartnerRetirement Solution Group, LLC“Securities offered through Ausdal Financial Partners, Inc, 220 North Main Street, Davenport, IA, 52801,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. AgendaWho Is RSG?What Happened?What We Are Watching?What To Do?

3. Who Is RSG?

4. Retirement Solution Group, LLCAll 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. This is our CORE business.Retirement Plan consulting firmAdministers over 250 plansCo-Fiduciary on more than $200,000,000Participant Services for more than 8000 participants2 federally enrolled actuaries on staff 2 on-staff enrollment & education support available (Spanish speaking available)We are fully independentRegional offices in Portsmouth, Chicago, and Florida (business in 22 states)Members of NIPA, ASPA and CFDD99% (+) of firm revenue comes from qualified retirement plan related businessRetirement Solution Group

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. What Happened?

7. Back to Work, Kinda…From November’s 2010 US jobless rate according to USBLS 9.2%As of March 2011 the same governmental organization reports 8.8%So What?Unemployment as lagging indicatorQ1 vs. Q2 Earnings season early 2011Foreign debt issues remainSource: US Bureau of Labor Statistics

8. Markets in 2011 (Source: Morningstar as of 7/21/11)US STOCKS: YTD & 1-YearDJIA, 10.11% and 26.18%S&P 500, 6.54% and 24.83%S&P 400, 8.81% and 33.87%Russell 2000, 6.88% and 34.95%International:EAFE, 3.05% and 21.85%EM, -1.27% and 19.2%BONDS: Core Bond, 3.53% and 4.03%Intermediate Corporate Bond, 5.00% and 7.09%TIPS, 7.47% and 10.72%

9. What Are We Watching?

10. Europe Again…Situation: Renewed concerns over 2010 debt crisis focal points (Greece, Ireland, Spain), especially Greece. Complication: Increased political strife reduces markets belief that deal is certain after concerns from Germany become public and there is potential expansion as Italy is identified as having solvency concerns.Result: Anticipated summer sell-off becomes a bit steeper and sooner (May) than initially expected. July 21, France and German deal reported.Retirement Solution Group

11. Why Debt Ceiling Matters, A Lot!Situation: US government spends more than it collects in revenue (taxes) by approximately a 40% margin (source: WSJ). On August 2nd it is estimated with an increase by Congress the US will exceed its debt ceilings and not be able to cover its bills.Complication: Politicians.Result: 38 of 40 economists in a recent survey by Reuters said they believed a deal would be done by 8/2. But, many are concerned that to make a deal it becomes significantly watered down and thus long-term insignificant.Retirement Solution Group

12. Impact of Debt (source: USBLS)Retirement Solution Group

13. What is resultUS Markets: It is a time where many feel down, think we could go way down, are generally very concerned, and they actually are making money.Debt ceiling is THE issue Earnings vs. macro economicsInternational Markets: Prior to Q1 unrest, overseas markets were key drivers to global recovery. Especially in emerging markets. So what’s next?Focus is on Europe riskLack of focus on emerging markets return potentialBonds: Remain sluggish but cause for much new discussion as we have seen change in demand, interest rate environment and risk measurements.QE2 ends 6/30/11Bernanke has suggested a QE3 as an optionRetirement Solution Group

14. So What?Fall 2011 investment due diligence Avoid loans, withdrawals and deferral reductionsSave more …

15. SummaryWho Is RSG?Goal is for Participants to make “Informed Decisions”What Happened?Roller Coaster of 2011, Expect ChangeWhat Are We Watching?How Does Spending Change in An Economically Friendly MannerWhat To Do?May 2011 Fidelity Report, Highest Avg. Participant Balances in 12 years

16. So What?“Why is the Truth So Hard to See?”Next Steps: Save more, 2011 limits are $16,500 ($22,000 with catch-up provision for those over 50)Review your asset allocationVolatility will remainYou must decide between offense and defense – RIGHT NOW!Next Steps: Analyze SituationSelect a PathCreate a Retirement Plan Calendar“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, John Hancock, HRCP or Retirement Solutions Group. They are opinion only and should be not considered as stand alone advice.” Retirement Solution Group

17. RSG Support TeamRSG is always available, 866-352-7731Steve Scott, Managing Partner x 21Scott Emering, Partner x11Ed Emering, Partner/FSACynthia Baldwin, ASAJulie Yanez, Sr. Pension Consultant x15 Bob Kibble, Pension Consultant x16Christie Cheng, Education & Relationship Manager x31Elvia Sanchez, Education & Relationship Manager (Bi-Lingual) x41Megan Dunne, Associate x24Dawn Vazquez, Associate x 51Retirement Solution Group