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Retirement Plans  What Your Nonprofit Must Know October 5, 2017  Mark Zoril, AIF  PlanVision
HEADLINES
US Courts Order 401k Sponsors to Do the Right Thing
Retirement Plans Often Rife with Conflicts of Interest
Are 401k Plans Making Companies Richer at the Expense of Employees
The Average American Is Paying Too Much in 401 k  Fees. Are You
Maybe you should sue your 401 k  sponsor
Small Companies Now Have No Excuse for a Lousy Retirement Plan
Conflicts of Interest  Revenue Sharing  Active Management Commissions Sub T-A Fees Wrap Fees Insurance Charges 12 b-1 Cons...
Growth Fund of America R1   1.44  R2    1.40  R3    1.09  R4   0.68  R5   0.54  R6   0.49
UNBUNDLE FLAT FEES INDEX
GOAL 1
UNBUNDLE SERVICES
RECORD KEEPING INVESTMENTS ADVISOR
CLARITY ACCOUNTABILITY CONTROL
PAY DIRECT Plan    Employer   Employees     FUNDS    ADVISOR  RECORD KEEPER
PAY DIRECT Plan    Employer   Employees   FUNDS    ADVISOR  RECORD KEEPER
PAY DIRECT Plan    Employer   Employees   FUNDS    ADVISOR  RECORD KEEPER
PAY DIRECT Plan    Employer   Employees   FUNDS    ADVISOR  RECORD KEEPER
GOAL 2
FLAT FEES
Record Keeping TPA Trust Processing  Advisor  Employer Employees
Why Flat Fees Percentage  Flat Fees  Plan Assets         1,500,000  .25   3,750
Why Flat Fees Percentage  Flat Fees  Plan Assets         1,500,000  .25  3,750    3,750
Why Flat Fees Percentage  Flat Fees  Plan Assets         1,500,000  .25  3,750    3,750   3,000,000  .25  7,500    3,750  ...
Why Flat Fees Percentage  Flat Fees  Plan Assets         1,500,000  .25  3,750    3,750   3,000,000  .25  7,500    3,750  ...
GOAL 3
Index Funds
INDEXING
The Triumph of Index Funds
86  of Active Managers Stunk in 2014
America Can t Afford Wall Street s Terrible Investment Advice
Measure for Measure Index Funds Rule
5 Charts Show How Index Investing is Beating Stock Picking
How Many Funds Routinely Trounce the Market  Zero
Low Cost Diversification Shareholder Owned   No  Revenue Sharing   No  Conflicts of Interest No Hype
Index Funds   .12
Actively Managed Funds   1.08
TARGET
1.25    Average per Employee Charge for Small Plans   5,000,000  1.05    Average per Employee Charge for Large Plans   50,...
Averages Should Be   0.50  Per Employee
    .50  LESS ASSETS MORE EMPLOYEES
    .50  MORE ASSETS LESS EMPLOYEES
Case Studies  3 Employers
Company A 12 Participants  2.2 Million Insurance Active Funds Total Costs   41,800 or 1.9  per employee All Employee Paid ...
Company A New Plan Investments       Record Keeper Advisor                     Total Costs       2,640           2,600    ...
Company A Comparison Total Costs Old Plan      New Plan Total Savings     41,800         7,540    34,260
Company A Annual Savings Average      Large Balance     3,300          9,000  Employee Pays Investments Employer  Pays  Re...
Company  B 110  Participants  7  Million Wrap Accounts Active Funds Total Costs   105,000 or 1.5  per employee All Employe...
Company  B New Plan Investments       Record Keeper Advisor                     Total Costs       8,400           12,000  ...
Company  B Comparison Total Costs Old Plan      New Plan Total Savings     105,000         28,900    76,100
Company  B Annual Savings Average      Large Balance     660          3,000  Employee Pays  Everything
Company  C 5  Participants  400,000 Active Funds   A Shares Total Costs   6,400 or 1.6  per employee All Employee Paid
Company  C New Plan Investments       Record Keeper Advisor                     Total Costs       480           1,780    8...
Company  C Comparison Total Costs Old Plan      New Plan Total Savings     6,400         3,060    3,340
Company  C Annual Savings Average      Large Balance     500          2,100  Employee Pays Investments Employer  Pays  Rec...
Average   1.25  Case Studies  Employees Pay  Company C  Company A  Company B  0.12   0.33  0.12
855 965 4286 markzoril planvisionmn.com  Mark Zoril