Plan Sponsor
Why would my company want to use this service?
Our unique approach to 401k management gives you advantages that your competitors do not have. LifeSync is an excellent benefit that may help you retain employees by helping make your 401k plan so attractive that they may not want to leave their jobs. The benefit may also make your company more attractive to new employees and promote the happiness and security of your current employees. This is a way for you to say, “We are taking extra steps to care for our employees“and back up that statement with results.
How much are the management fees?
They typically amount to a quarter of a percent of the employees’ account value, billed quarterly, or one percent annually. This is a very small investment when you consider the return it offers in terms of employee peace of mind and reduction of employer concerns and time with regard to managing 401k plans. Also, there is no obligation for your employees to sign up—the program is simply an option for each participant.
Some companies will wanWho pays the fees? t to pay the fees as a benefit; other companies require that the investing employee pays the fee. LifeSync works well either way—see the next two questions.
Why would a company prefer to pay the fee itself?
First, it simplifies administration. Also, offering a managed 401k plan is a surprisingly low cost benefit that can pay huge dividends in employer retention and satisfaction. Companies are constantly seeking new and unique benefits that can have a major impact on the well-being of their employees. Such companies will want to consider paying the management fees for the employee.
When would a company prefer to let the employees pay the fees themselves? l over the average for employee benefits and do not need additional goodwill in order to induce employee loyalty. Yet these companies can still offer our service and let the employees choose to pay the management fees themselves.
Why can’t my custodian prepare an analysis?
Many custodian work for a particular fund, or are paid a commission or a fee by the funds. Many custodians are not independent financial advisors, so even if they could prepare an analysis for you, you may not want them to do so, because it is possible that they may be limited to offering a small number of investment options.
Why Maul Capital?
We are independent financial advisors. This means that we have no affiliation with any of the funds in any 401k plan, and we are not receiving commissions or fees from those funds. This allows us to be unbiased in our views of all the funds available in the marketplace. We have no proprietary funds to promote.
Do we need to change custodians?
No. Actually, we would prefer that you do not change custodians…or funds. We know that you have put a great deal of time and effort into selecting the mix of funds you currently offer your employees. You don’t have to change your funds to add LifeSync! We can work with the funds you currently offer.
If it turns out that we believe the funds you currently offer are not optimal choices or are overpriced compared with funds in their peer group, we can help find more appropriate choices for you to offer.
What can employee participants expect?
Employees can expect a high comfort level and will know that a team of investment professionals is managing their accounts. They will know that if market conditions change, a seasoned portfolio manager will adjust the portfolio in response. Your employees will also receive quarterly market updates which review the current market environment and any changes made in the portfolios.
If positioned properly, this philosophy may work iIs “buy and hold” a good enough strategy in today’s market? n an upward trending market, as it did in the mid to late 1990s. As history has shown, however, this same philosophy utilized in the sideways-trending or secular bear market (1966–1982) will not maximize long-term overall results. That’s why a carefully managed 401k plan is essential to maximize the likelihood of success for your employees.
How are the asset allocation models developed?
Our asset allocation models seek to achieve the “efficient frontier,” an optimal blend of assets intended to yield over time, the highest return for a given level of risk. Studies have shown that a portfolio “blend of assets,” the division of a portfolio among mutual funds that invest in stocks, bonds, and cash, is the most important component in portfolio planning.
Do the employees with low balances need this kind of monitoring, or just the employees with greater net worth?
In our minds, each and every employee’s retirement is equally important, and we treat all of our clients exactly the same way.
How do we get started?
Call us. Maul Capital will analyze the performance and fees for mutual funds available from your plan custodian. Maul Capital will compare the funds to other funds in their peer group and in the market. Maul Capital can designate the funds that we would have recommended to comprise the asset allocation models. You can reach Maul Capital at 702-360-3780.
Contact us to get started today!
