keys to understanding your retirement plan © 2012 envoy financial, inc. all rights reserved. envoy...
TRANSCRIPT
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Retirement Plan Fee Disclosure
PresentationKeys to understanding your
retirement plan
© 2012 Envoy Financial, Inc. All rights reserved.Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920 Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor.First Use: July 24, 2012
Presented by: Bruce Bruinsma
CEO, Envoy Financial
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Counting the Cost
All Retirement Plans have costs
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Knowing what services are available to you and the cost of those services is integral to understanding your retirement plan
Using those services is theway you reap the greatest benefit from the plan
Counting The Cost
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Connecting to your Participant Web Portal and then accessing the Resource Center is the best way to understand the services available
Counting The Cost
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Utilizing those resources brings the greatest “added value” to this plan provided by your Employer
Counting The Cost
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Retirement Plan Components
The elements that make up a retirement plan
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Investments: ◦ Advice to the Plan Sponsor
Legal Documents that make up the Plan:◦ Summary Plan Description
Third Party Administration Services: ◦ Makes sure every activity is legal
Recordkeeping: ◦ Makes sure all activities are
tracked and reported accurately and in a timely manner
Your Retirement Plan is Composed of Several Parts
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Some costs are paid for directly by the Plan Sponsor
Some costs are paid for by the Participants of the Plan
Assuming that your employer makes a contribution to the Plan or facilitates its existence, the employer is paying for a percentage of the Plan expenses
There Are Costs for These Services
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403(b) used by non profit organizations
401(k) used by for profit organizations
IRA used by individuals457 used by governmental entities
The Type of Plan You Have is a DEFINED CONTRIBUTION PLAN
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IRS Code section 405(c)(4) says that:◦ Each year your Employer, the Plan Sponsor,
must provide two documents to you The Summary Plan Description The Fee Disclosure Document
◦ Further, beginning with your quarterly statement made available after September, 2012, the actual expenses incurred must be shown on that statement
◦ Envoy Financial assists your Employer with these activities
New Regulations Require This Disclosure (and that is a good thing!)
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Information about the plan in general, including any expenses you may incur through participation in the plan, or through taking advantage of any special plan features
Information about the investment options available to you including the expense associated with those options
What Will You See on the Annual Disclosure Statement
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Expense Categories
Expenses for delivery of various services
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Here are the categories of expenses detailed in the Disclosure Report:
◦ Administrative Expenses: Custodial, Recordkeeping and Advisory,
for example
◦ Individual Expenses: Loans and distributions, for example
◦ The individual Fund Expenses are detailed for each fund on your basic menu of offerings
Categories of Expenses
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Your Retirement Plan Oversight Committee, with assistance from Envoy, is responsible for your investment menu.
Each mutual fund, professionally managed investment account, has expenses associated with it. The next chart illustrates some funds and their expenses.
How is the Menu of Funds Selected?
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Examples of Fund Information
Expense information
Returns information
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Beginning with the September, 2012 quarterly statement, fee disclosure information specific to you will be included
We will address the format for that disclosure in another presentation
Be aware that it is coming
In Addition, Disclosure Information Will Be Added to Your Quarterly Report
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First, know that your Retirement Plan Oversight Committee is overseeing your Plan
Second, be confident that the expenses are reasonable and they maintain the service and support of your Plan
Finally, take advantage of all the available tools for your Plan, educational and other resources applicable to your situation
Envoy Financial website – Retirement Matters, Resources, Calculators, etc.
What To Do With All This Disclosure Information
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Transparency is a good thingWelcome to the “next step” in
retirement planning◦ Envoy Choice!
Fee Disclosure
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Contact Us For Assistance◦Participant Service:
(888) 879-1376, option 1 [email protected]
Connect with Us◦ Facebook◦ Twitter◦ Blog: Seizing Retirement
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Services provided by:
Envoy TPA and Recordkeeping, Inc. Third Party Administration Envoy TPA and Recordkeeping, Inc. Recordkeeping Services Envoy Advisory, Inc. Registered Investment Advisor Envoy Securities, LLC Broker/Dealer Member FINRA/SIPC Envoy Financial, Inc. Education, Sales and Marketing