Savings Plan ManagementSM
Today’s 401(k) plans provide employees with a convenient way to save for retirement on a tax-deferred basis. However, the benefits your employees receive upon retirement are based in large part on their investment decisions. Experience has taught us that many individuals lack the time, tools and talent to manage their own 401(k) properly. For these employees, our Savings Plan ManagementSM service reduces participants’ worry about managing a companysponsored 401(k) savings plan. By professionally managing the savings plan on the participant’s behalf, we save the participant time, ease their mind if they’re uncomfortable making financial decisions, and help ensure their allocations keep them on track to reach their retirement goals. The first step to successful investing is determining an investor profile. A professional financial advisor helps your employee establish an investor profile, which includes time to retirement, tolerance for investment risk, and information on other possible sources of retirement income. Using Modern Portfolio Theory, including mean-variance optimization, we then invest an employee’s 401(k) assets in a way that will help them reach their retirement goals, while maintaining an acceptable level of risk. Once the investment decisions are made, we implement those decisions on the employee’s behalf utilizing limited discretionary authority over their account. We monitor the performance of the portfolio throughout the year, and if our research determines that a change in portfolios is warranted, we make that change for the employee. The financial advisor will speak with the employee at least once every quarter. However, participants may call their advisor at any time with questions about their
retirement plan and asset allocation. There is no limit to the amount of time a participant may spend consulting his or her advisor on aspects relating to their retirement plan. Our role as an investment advisor will be spelled out in any written agreement we enter into with plan participants. Furthermore, we will agree to indemnify sponsors against any legal claims relating to our provision of investment advice to plan participants. We are an â€˜independent adviser,â€™ enabling us to avoid any potential conflict of interest with 401(k) plan providers, such as mutual fund companies and banks. Our educational services include a variety of financial seminars, materials and one-on-one educational sessions. We customize the seminars to address issues of particular relevance for the group, whether they are near retirement or have just started working and saving. The Retirement Group educates corporate employees that are transitioning or retiring ING Retirement.