not on my nickel for retirement investors1.6
TRANSCRIPT
3©2013 Not On My Nickel
? Do I know what my true portfolio returns are?
Do I know about the hidden fees in my employer’s 401(k) plan or my IRA?
3©2013 Not On My Nickel
? Do I know what my true portfolio returns are?
Do I know about the hidden fees in my employer’s 401(k) plan or my IRA?
Do I know that most financial advisors act in their best interest, not mine?
3©2013 Not On My Nickel
? Do I know what my true portfolio returns are?
Do I know about the hidden fees in my employer’s 401(k) plan or my IRA?
Do I know that most financial advisors act in their best interest, not mine?
Do I know my 401(k) or IRA could be costing me close to 1/3 of everything I save?
3©2013 Not On My Nickel
? Do I know what my true portfolio returns are?
Do I know about the hidden fees in my employer’s 401(k) plan or my IRA?
Do I know that most financial advisors act in their best interest, not mine?
Do I know my 401(k) or IRA could be costing me close to 1/3 of everything I save?
Do I know that Social Security will provide about $15,000 annually when I retire?
4
Understand how to read your statement to see your true performance?
Learn how to start saving money now, without fees, so you will have more for retirement?
©2013 Not On My Nickel
?
4
Understand how to read your statement to see your true performance?
Learn how to start saving money now, without fees, so you will have more for retirement?
Learn how much you need to invest today to do the things you want to in retirement?
©2013 Not On My Nickel
?
4
Understand how to read your statement to see your true performance?
Learn how to start saving money now, without fees, so you will have more for retirement?
Learn how much you need to invest today to do the things you want to in retirement?
Understand why Target Date Funds are a poor investing option that limits how much money you will have in retirement?
©2013 Not On My Nickel
?
5©2013 Not On My Nickel
MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY! No professional standards
5©2013 Not On My Nickel
MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY! No professional standards
Investments are based on an increasingly controversial computer model
5©2013 Not On My Nickel
MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY! No professional standards
Investments are based on an increasingly controversial computer model
Adds an unnecessary layer of cost that significantly reduces your returns
5©2013 Not On My Nickel
MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY! No professional standards
Investments are based on an increasingly controversial computer model
Adds an unnecessary layer of cost that significantly reduces your returns
Financial literacy efforts have failed due to lack of engagement and dependency on financial advisors
5©2013 Not On My Nickel
MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY! No professional standards
Investments are based on an increasingly controversial computer model
Adds an unnecessary layer of cost that significantly reduces your returns
Financial literacy efforts have failed due to lack of engagement and dependency on financial advisors
Financial industry advertising & marketing create demand for advice services, not engaging investors
FACT
LOOK
30.3% Average retirement savings lost to fees over an individual’s investing lifetime $154,794!The Retirement Savings Drain,Robert Hiltonsmith, Demos.org
6©2013 Not On My Nickel
America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.
FACT
LOOK
Recent studies show many 401(k) plans hold poorly performing options
BrightScope
6©2013 Not On My Nickel
America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.
FACT
LOOK
Advice to retirement savers in 401(k) plans is conflicted and fees are hidden from investors (advice fees should NEVER be embedded in 401(k) plans!)
Third-parties agree
6©2013 Not On My Nickel
America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.
FACT
LOOK
Retirement savers are taught through media, advertising and FINRA education to rely on an “expert” advisor. Because of this reliance they never learn how to invest directly, which prevents them from becoming engaged.
2012 NFCS Report
6©2013 Not On My Nickel
America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.
FACT
LOOK
Recent academic studies show Modern Portfolio Theory may be harming returns due to unnecessary portfolio rebalancing, which drives up trading costs – which drives up hidden fees!
The Retirement Savings Drain,Robert Hiltonsmith, Demos.org
6©2013 Not On My Nickel
America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?The experience, credentials and past performance of yourERISA or other financial advisor?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?The experience, credentials and past performance of yourERISA or other financial advisor?Guidelines and criteria to understand what constitutes high fees and outperformance?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?The experience, credentials and past performance of yourERISA or other financial advisor?Guidelines and criteria to understand what constitutes high fees and outperformance?How to compare your current portfolio performance to anoption that can save you $100,000s over your investinglifetime?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?The experience, credentials and past performance of yourERISA or other financial advisor?Guidelines and criteria to understand what constitutes high fees and outperformance?How to compare your current portfolio performance to anoption that can save you $100,000s over your investinglifetime?You are ultimately responsible for your individual retirement savings?
7©2013 Not On My Nickel
DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?The true fees you are paying for management in dollars, not percentages?The experience, credentials and past performance of yourERISA or other financial advisor?Guidelines and criteria to understand what constitutes high fees and outperformance?How to compare your current portfolio performance to anoption that can save you $100,000s over your investinglifetime?You are ultimately responsible for your individual retirement savings?
Here’s how youcan learn to say
yes to these questions
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTActive management Passive management (Index funds) by financial advisors based on Modern Portfolio Theory
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTDIY direct investing Conflicts of interests with middlemen advisors
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTTrue portfolio manager fiduciaries
Self-serving financial advisors who present themselves as fiduciaries
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTPaying one low fee, one time
Paying advice fees multiple times due to hidden expenses – to broker, financial advisor and 401(k) plans, IRAs
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTProven balanced funds Controversial Target Date Funds
8©2013 Not On My Nickel
People are demanding transparency about the fees they pay.
IN OUTKeeping $100,000s in your retirement savings
Putting money in financial advisors’ pockets!
9©2013 Not On My Nickel
New online investing services are no better than traditional advisors to deliver what investors need today
Low Fees Proven performanceExperienced active PMs/fiduciaries
Conflict-free research & education designed to engage employees
Passive/Index investing
Uses Computer model, Modern Portfolio Theory, Target Date FundsCharges advice fee
Not On My Nickel X X X X
Wealthfront.com X X X
Betterment.com X X X
Financialengines.com X X X
Guidedchoice.com X X X
Traditional Advisor X X
9©2013 Not On My Nickel
New online investing services are no better than traditional advisors to deliver what investors need today
Low Fees Proven performanceExperienced active PMs/fiduciaries
Conflict-free research & education designed to engage employees
Passive/Index investing
Uses Computer model, Modern Portfolio Theory, Target Date FundsCharges advice fee
Not On My Nickel X X X X
Wealthfront.com X X X
Betterment.com X X X
Financialengines.com X X X
Guidedchoice.com X X X
Traditional Advisor X X
Are you aware of a new choice
for retirement investing
available today?
10©2013 Not On My Nickel
Independent, conflict-free research to find only the very few top portfolio managers that outperform the indices for 5, 10 and 20 years
10©2013 Not On My Nickel
Independent, conflict-free research to find only the very few top portfolio managers that outperform the indices for 5, 10 and 20 years
Prudent alternatives to Target Date Funds
10©2013 Not On My Nickel
Independent, conflict-free research to find only the very few top portfolio managers that outperform the indices for 5, 10 and 20 years
Prudent alternatives to Target Date Funds
Ongoing research, education and engagement through interactive tools
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
Transparency to immediately eliminate unnecessary fees
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
Transparency to immediately eliminate unnecessary fees
Interactive education to make confident investing choices
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
Transparency to immediately eliminate unnecessary fees
Interactive education to make confident investing choices
Access to a short list of the best 401(k)/IRA options
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
Transparency to immediately eliminate unnecessary fees
Interactive education to make confident investing choices
Access to a short list of the best 401(k)/IRA options
Education to keep you engaged to monitor your investing choices
11©2013 Not On My Nickel
Not On My Nickel is the first and only independent research and education service designed to engage investors.We simplify retirement investing and actively engage investors to take control of their future with tools that provide:
Transparency to immediately eliminate unnecessary fees
Interactive education to make confident investing choices
Access to a short list of the best 401(k)/IRA options
Education to keep you engaged to monitor your investing choices
HERE’S HOW IT WORKS...
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Superior, long-term resultsManagers with 10- and 20-year track records of outperforming the benchmark, by at least 2% after fees, when feasible.
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Low management feesTotal expense ratio is less than 0.75%.
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Sustainable economic valueMutual funds who contribute to the improvement of the U.S. economy.
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Low portfolio turnoverMutual funds with 15% or less portfolio turnover, when feasible.
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Number of other funds managed by the companyCompanies that oversee one or two funds. Ones that do not stretch their resources by overseeing too many funds.
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
An operating philosophy that proves clients come firstWe ask: What is their history of ethics? Is the fund manager consistent in their strategy over time? Are fees excessive and the primary driver of their business? Is the manger pay excessive? Do they have past regulatory concerns or fines?
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Fact check the short list of portfolio managers against third-party rating services
2
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Fact check the short list of portfolio managers against third-party rating services
2
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Fact check the short list against their SEC filings3
Fact check the short list of portfolio managers against third-party rating services
2
13©2013 Not On My Nickel
Simplifies the Universe of 1,000s of Mutual Fund Choices by Doing the Time-Consuming Research Using a Three-Step Approach
Research all mutual funds against our six criteria1
Fact check the short list against their SEC filings3
The result is a handful of proven, active portfolio managers for employees to choose from
14©2013 Not On My Nickel
Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees
14©2013 Not On My Nickel
All top investment options are:
Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees
14©2013 Not On My Nickel
All top investment options are:
Portfolio managers who are true fiduciaries overseeing discretionary investments (they make the best decisions for the investor)
Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees
14©2013 Not On My Nickel
All top investment options are:
Portfolio managers who are true fiduciaries overseeing discretionary investments (they make the best decisions for the investor)
Qualified with decades of experience managing retirement assets that outperform their benchmark
Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees
14©2013 Not On My Nickel
All top investment options are:
Portfolio managers who are true fiduciaries overseeing discretionary investments (they make the best decisions for the investor)
Qualified with decades of experience managing retirement assets that outperform their benchmark
Never driven by computer models or algorithms
Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees
14©2013 Not On My Nickel
Select one or two core U.S. Equity or U.S. Balanced managers, typically representing 60% of yoursavings. Then, select International, Aggressive Growth, Bonds or Cash to round out 100% of your holdings
15©2013 Not On My Nickel
Directly purchase your selected funds through your employer’s brokerage window to save 0.25%–3.0% in unnecessary fees
If your company does not have a brokerage window in their 401(k), one can easily be added
16©2013 Not On My Nickel
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16©2013 Not On My Nickel
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16©2013 Not On My Nickel
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18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you:
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
Invest in proven portfolio managers/funds with lower fees
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
Invest in proven portfolio managers/funds with lower fees
Eliminate your dependency on a financial advisor
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
Invest in proven portfolio managers/funds with lower fees
Eliminate your dependency on a financial advisor
Save time with with unbiased, researched investing options
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
Invest in proven portfolio managers/funds with lower fees
Engage in investing through transparency and education
Eliminate your dependency on a financial advisor
Save time with with unbiased, researched investing options
18©2013 Not On My Nickel
See for yourself how you can:Access the safest, most conservative and cost-effective retirement savings option today as you take control of your financial well being
While you: Reduce your 401(k) or IRA retirement plan costs
Invest in proven portfolio managers/funds with lower fees
Engage in investing through transparency and education
Take control of your financial future
Eliminate your dependency on a financial advisor
Save time with with unbiased, researched investing options
19©2013 Not On My Nickel
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20©2013 Not On My Nickel
The first and only independent research and education service that teaches employees to take charge of their retirement savings
i
Provides immediate access to the best-performing portfolio managers at the lowest fees
Offers ongoing eduction and resources
Grounded in a spirit of teaching others how to take control of their financial future
Visit us at www.NotOnMyNickel.com