gear up for more 401(k) rollovers retirement management systems
TRANSCRIPT
Gear Up For More 401(k)Rollovers
Retirement Management Systems
Retirement Management Systems
Savings Plan Management
An asset management program for 401(k), 403(b), and other
Defined Contribution type accounts.
RelationshipsRevenue
Rollovers
•Schwab: Participants who use advice see better outcomes 87% of the time.
•Financial Engines/Hewitt: Annual median returns for ‘Help’ participants were 292 basis points higher than non-Help participants across the three year period.
•Schwab: Only 10% of employees who have access to professional advice actually take advantage of it.
Retirement Management Systems
Does Help Work?
Retirement Management Systems
• Don’t have resources– Research for asset management– Back office for transactions and auditing– Administration for billing and statements
• Can’t charge for it• Don’t want to take discretion
Why It’s not Offered by Advisors
Retirement Management Systems
• Custody
…if password access provides the adviser with the ability to withdraw funds or transfer them to an account not in the client’s name at a qualified custodian.
• ERISA Fiduciary…can become one simply by your actions, not
withstanding anything in a written agreement. …providing advice to a participant, even without
a contract to the plan, can cause the Advisor to be a plan fiduciary and subject to prohibited transaction rules.
The Pitfalls
Retirement Management Systems
• Properly allocated portfolios based on their individual needs
• Timely rebalancing and reallocation changes– 13% of participants traded their accounts in
2009*• Retirement goal setting• Understanding of risk• Discipline
Advisors Add Value!Advisors Add Value!
What Help Do People Need?
*”How America Saves,” Vanguard, 2010
Retirement Management Systems
To empower independent financial advisors to provide a managed 401(k)/403(b) account solution
for their individual and plan sponsor clients.
Mission Statement
Retirement Management Systems
• Portfolio construction• Transactions• Account administration, including billing and
data aggregation• Marketing support
RMS Provides the Tools
Retirement Management Systems
• Sales tips– Existing book review– Leverage ‘executive’ relationships– Bundle into existing services (i.e., tax prep,
financial planning)
You Provide the Relationships
Retirement Management Systems
• Flat Fee (Based on Account Size)– Account Size• < $250K - $240/Year• $250-$500K - $360/Year• > $500K- $480/Year
– Billing monthly, quarterly, annually– Invoice or recurring- ACH (Checking
Account)
Billing Model
Retirement Management Systems
• Seminars • Letters• Flyers/Brochures• Video
Marketing Support
Retirement Management Systems
SCM Advisors– # of SCM Registered Advisors-9– # of Clients-1796– SCM 401(k) AUM- $583,950,467.60– Average Account Balance-$325,139.46– Average of 401(k) Clients Per Active SCM Advisor-~200
Avg. SCM Advisor Pipeline AUM-$64,885,385.30
Scarborough Capital Management
Retirement Management Systems
In-Service Withdrawal Opportunities
Retirement Management Systems
Questions?
Questions?
Retirement Management Systems
Matt KeenumNational Director of Business Development410-972-2498
Contact Us