Keegan Denn, CFP®

Ty,

I appreciate you taking the time to do your due diligence when selecting a low cost, yet robust plan for your employees. We manage plans for companies of your size and there are a handful of things that I recommend.

-Start by identifying a Registered Investment Advisor who is willing to take on the role of a 3(38) advisor. As your company grows, this will become even more important as a 3(38) advisor will help relieve you of the investment liability when selecting the investments for your company. Short of hiring a 3(38) advisor, you will shoulder the burden of selecting the menu and thus maintaining full liability for those choices.

-Stay away from insurance-based plans, as they are generally more expensive and have multiple layers of fees.

-Work with an advisor who is proactive in the plan design and is willing to analyze your plan to determine if you are maximizing the value that you receive from offering this employee benefit. The design of your plan can affect your company’s ability to recruit and retain qualified employees.

-A good advisor/investment firm will run an analysis of your plan design, have access to ERISA attorneys and other experts to ensure you are maximizing your company dollars, and ensure you are compliant given the new 408b2 regulations as well as the soon to be in place 404a5 requirements.

-Make sure your plan includes index funds or exchange traded funds which are substantially less expensive than actively managed mutual funds.

While this list is far from complete, these tips will get you started. If you would like to chat about his question in more detail, I am always willing to talk retirement planning. Feel free to reach out to me at 541-770-1311.

Congratulations on your impending retirement! Now that retirement is literally just around the corner, I think it is best for you to identify a fee-only advisor that can help you make the transition. Working with a fee-only advisor, preferably one who is a Registered Investment Advisor will ensure that your interests are at the forefront of any investment decision being made on your behalf. You can learn more about some of the questions you should ask by clicking here: http://www.fidelisim.com/home/what-we-do-for-you/ (Top five questions to ask your advisor).

Upon identifying a competent advisor, he/she will open up an account for you to facilitate an IRA rollover. This account will enable you to take distributions from your retirement savings and maintain the tax deferred status while in the IRA rollover. Please note that as long as you are over 59.5 you will not face any penalties for taking distributions from your account. If you are under 59.5, that is a completely different situation. You should be able to set up your IRA rollover so that withdrawals from your account can be directly deposited into your bank account.

Once you have set up your IRA rollover, you need to identify the person at your company that is responsible for the administration of your plan. He/she will be able to provide guidance on how to complete the distribution from your plan in the form of a direct rollover to your newly established IRA rollover. You will need the account number from your newly set up IRA rollover to facilitate this transaction. Once the money transfers, your advisor will invest the money in an investment strategy that matches your income needs and risk profile and enables you to take regular distributions.

If you have further questions, please feel free to shoot me an email. keegan@fidelisim.com

Hello Nelly, You are not alone. Many people are contemplating the same question. There is no better time than now to start getting serious about your retirement. You have 9 years until your projected retirement date and yes, that may need adjusted depending on what transpires in the market over the next decade. Here are some things you can do now to help increase the likelihood that you can retire when originally planned.

1. Create a plan for paying down debt. This will reduce the amount of income you will need in retirement to support your lifestyle.
2. If you are a home owner, take a close look at the current rate you are paying and if possible, consider re-financing to reduce the interest payment and/or shorten the term of the loan.
3. Increase your contributions to your 401k.
4. Work with an advisor to ensure you have an appropriate allocation within your retirement plan. One industry study suggests that over 90% of the volatility in your portfolio return is attributable to your asset allocation. Making prudent decisions regarding the “ingredients” which make up your portfolio is crucial. (Learn more here: http://www.fidelisim.com/services/investment-management/ )
5. Do not lose site of the fees you are paying within your plan. Choose low cost index mutual funds or exchange traded funds (ETFs) if available. The plan’s advisor should be able to provide you guidance on this.
6. As stated in another post, DO NOT CHASE PERFORMANCE. Yesterday’s winners are often today’s losers.

I think you will find that with patience and discipline, you can meet your goals. The key is that you must be realistic with your expectations, make a plan for where you need to be financially, and stay committed to achieving your goal.