Post on 17-Jan-2015
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CONFLICT-FREE, INSTITUTIONAL 401(K) ADVICE
THAT WORKS• Free 1-on-1 Consultations
• Education with “The Answer”• Fiduciary Safe Harbor
Copyright © 2011 BeManaged. All rights reserved.
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401(K) PARTICIPANTS NEED HELP
Dalbar studies illustrate the negative impact of investors’ decisions on their long term portfolio returns (3.17% for investors vs. 8.2% for the market*)
Source - http://goo.gl/I4qsT
Copyright © 2011 BeManaged. All rights reserved.
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401(K) INVESTORS WANT ADVICE
A recent Hewitt study illustrated not only that participants want advice but were specific about how they want it delivered: 1on1 – 51% Online – 23%
Source - http://goo.gl/eqy8x
Copyright © 2011 BeManaged. All rights reserved.
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SERVICE OPTIONS AND APPROACH
•“Do-It-For-You” Account Management
•2-5 Portfolio Adjustments per Year
•4-6 Personalized Updates to Manage Investment Behavior
•Personal Annual Review
BeManaged
•“Advise-You-What-To-Do” Investment Advice
•2-5 Portfolio Adjustments per Year
•4-6 Personalized Updates to Manage Investment Behavior
•Personal Annual Review
BeAdvised
Copyright © 2011 BeManaged. All rights reserved.
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Copyrig
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BeM
anaged. A
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ts rese
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OUR SERVICE APPROACH
Group Meetings
Department Meetings
Free Face-to-Face
Consultations
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GROUP MEETINGS Meetings provide education as well as set expectation
for 1on1 consultations Standard group meetings limited to 20-25 minutes
Myths and Tips of Investing in Volatile Markets Investing 101-301
Customize content to length of meeting We have delivered 5-10 minute “Who We Are and What We Do” in
department meetings
Analogies are used to simplify concepts and behaviors to accelerate learning of investment principles Ingredients and recipe analogy to help investors understand asset
allocation Comparing share depreciation to home equity
Focus participants on becoming great savers instead of investors
Copyright © 2011 BeManaged. All rights reserved.
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CONSULTATION PROCESS – 1ST STEP – INVESTOR PROFILE
Risk Counselor guides participant through investor questionnaire, located at http://bemanaged.com
Desired level of risk is illustrated on investment worksheet
Copyright © 2011 BeManaged. All rights reserved.
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CONSULTATION PROCESS – 2ND STEP – MAP OUT PORTFOLIO AND RISK METRICS
Login to the provider site to compare questionnaire results with how they are invested
Results illustrated on Investment Worksheet
Copyright © 2011 BeManaged. All rights reserved.
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CONSULTATION PROCESS – 3RD STEP – REVIEW SAVINGS RATE
Review savings rate Provide BeRetired
retirement income analysis report to help stimulate savings increases
Discuss strategies for maximizing savings
Copyright © 2011 BeManaged. All rights reserved.
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CONSULTATION PROCESS – 4TH STEP – TAKING ACTION
Review options for fixing any investment issues
Discuss final points and answer any questions regarding BeManaged and BeAdvised services
Customize communication preferences
Copyright © 2011 BeManaged. All rights reserved.
HOW IT WORKS – START TO FINISH – YEAR 1
Copyright © 2011 BeManaged. All rights reserved.
Free 1on1 Consultatio
n
Ongoing Manageme
nt
Proactive Updates
Personal Annual Review
HOW IT WORKS – START TO FINISH – YEAR 2
Copyright © 2011 BeManaged. All rights reserved.
Ongoing Manageme
nt
Proactive Updates
Personal Annual Review
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RESULTS OF CONSULTATIONS – REPORTED TO PLAN SPONSOR / ADVISOR
Participants receive a detailed analysis of their portfolio
Discuss strategies to increase savings via immediate or auto-escalation features
‘Participant Success Metrics’ and by-products of consultation are reported back to the employer/consultant, including: Savings increasesPIN resetsRestarted contributions to planEnrolled in planUtilization of decisions made regarding
BeManaged, BeAdvised, newsletter only, etc.Copyright © 2011 BeManaged. All rights
reserved.
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STANDARD FEE SCHEDULE – QUOTED TO SPECIFICS OF RETIREMENT PLAN
Account Balance
Quarterly Fee
$0 - $83,333 0.15%
$83,333+ $125
Account balances in the plan
Travel Reimbursement Hotel Airfare (if applicable) Car Rental (if
applicable)
Standard Fee ScheduleVariables Impacting Fee Schedule
Copyright © 2011 BeManaged. All rights reserved.
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UTILIZATION AND RESULTS Small / Mid Market
Plans (75 – 1,000 participants) 30%– 70%
Large Market Plans (1,000+ participants) Greater than 15%
All Results Reported to Plan Sponsor and/or Plan Advisor
Copyright © 2011 BeManaged. All rights reserved.
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WHAT MAKES BEMANAGED UNIQUE – OUR FOCUS 1-on-1 Participant Consultations – Result in industry-leading utilization Centrally Delivered, Process Driven Advice and Management- All advice is
delivered by our dedicated Research Department so to maximize consistent, prudent, fiduciary advice; a critical component of managing our liability as well as that of the companies we serve.
High Touch Communication Approach- Our proactive, personalized communications decrease poor investment behavior while resulting in a >96% retention rate.
Participant Investment Policy Statement- Each participant receives a personalized IPS to ensure fiduciary prudence which serves as a foundation for our ongoing communications.
Focused Service Delivery- Participant consultations are not muddled by the sale of IRAs, brokerage accounts, or insurance products. The time the company invests in their employees is focused on their 401k, not prospecting for product sales opportunities.
Annual Corporate Review - In accordance with the provisions of the PPA Fiduciary Adviser safe harbor, we proactively provide an annual report of model performance, contribution increases, and participant success metrics that result from BeManaged’s interactions with participants.
Acknowledge Fiduciary Position in Writing- In accordance with the PPA Fiduciary Adviser provisions, we acknowledge our fiduciary position specific to the PPA Fiduciary Adviser role in writing with both the plan and the participants using our service.
Copyright © 2011 BeManaged. All rights reserved.
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PPA FIDUCIARY ADVISER SAFE HARBOR
Level Fee Adviser “the amount the adviser receives for giving the
advice remains the same no matter what advice is given and how the participant invests his account” Fee leveling must extend to all affiliated firms as well
Compensation must be reasonable Must make certain disclosures to the participants
including the compensation and fact it is acting as a fiduciary
Must be annually audited Source - http://reish.com/publications/article_detail.cfm?ARTICLEID=609
Copyright © 2011 BeManaged. All rights reserved.
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PPA FIDUCIARY ADVISER SAFE HARBOR
Fiduciary Safe Harbor The plan sponsor or another independent
fiduciary must prudently select and monitor the fiduciary adviser, but so long as all the conditions of the exemption are satisfied (and the terms of the arrangement require compliance with the exemption, including acknowledgment of fiduciary status), it has no duty to monitor the advice given to the participants. In other words, the plan sponsor has no responsibility or liability under ERISA for the advice given.
Source - http://reish.com/publications/article_detail.cfm?ARTICLEID=609
Copyright © 2011 BeManaged. All rights reserved.
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BEMANAGED CREDENTIALS AND QUALIFICATIONS
CEFEX (Centre for Fiduciary Excellence) Fiduciary Adviser (PPA)o 1st company in the nation to
complete Pension Protection Act (PPA) Fiduciary Adviser certification
o ISO organization for investment fiduciaries to confirm adherence to global fiduciary standard including: business process, investment management and methodology, documentation and PPA Fiduciary Adviser provisions for Fiduciary Adviser (PPA) certificate holders
Dedicated Research Department John Whaley, CFA heads
dedicated Research Department
All advice and management is delivered centrally so to ensure quality, consistency and prudence
Research team members guided by Chartered Financial Analyst ethical standards
Qualifications Business Structure
Copyright © 2011 BeManaged. All rights reserved.
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CONTACT US
Toll Free – (888) 738-87805088 Corporate Exchange Blvd, Suite 140
Grand Rapids, MI 49512
http://BeManaged.com
References available upon request
Copyright © 2011 BeManaged. All rights reserved.