Archive for ‘March, 2010’


datePosted on 21:10, March 24th, 2010 by lee

I was with an advisor today that closed an 8m 401k Safe deal today. We had met with the controller a couple of weeks ago; today we had the first meeting with CFO. Most people still have their default option set to go into a money market account because they assume it’s safe. This is what everyone did prior to pension protection act of 2006.

It wasn’t a complicated conversation. How many people know what QDIA means? The advisor made it simple. The people in Washington didn’t think it was a good idea for someone that was 25 years old to let their retirement plan money sit in a money market account for 40 years so they simply said if you want the 404c protection you need to invest it.

The prospect got it.

He also liked the idea that with 401k Safe he no longer had to do a 5500, have a plan audit, administer hardships, loans, withdrawals, or serve as the named sponsor of the plan. It was a short meeting.

More Than 12% of Plans Are Searching For a New Adviser

datePosted on 18:06, March 12th, 2010 by lee

The majority of advisors don’t market and sell 401(k) plans. Many advisors can’t make the math work. Too much paper work relative to the revenue. It’s also a complicated field one must be versed in to successfully guide clients through the maze of regulations.

We are working to disrupt the market with 401k Safe. First, our advisor partners simply need to be able to communicate the fiduciary risk associated with sponsoring a 401k plan, and that’s not complicated. If you don’t follow the guide lines laid out by Erisa you have unlimited personal liability. Second they need to have a solution to the problem and that is where 401k Safe comes in.

Once a client adopts our plan we become the sponsor, administrator, fiduciary of the plan, and it’s easy! Our advisor partners do the annual enrollments, 401k Safe takes over as the fiduciary, and the client gets the most logical 401k plan solution on the planet.

Feb 17, 2010 — The Law Offices of Howard G. Smith has announced its investigation of potential violations of the Employee Retirement Income Security Act violations by Toyota Motor Corporation, related to design defects in its vehicles’ acceleration systems. —

A press release said a shareholder lawsuit pending in the United States District Court for the Central District of California claims that between August 4, 2009, and February 2, 2010, Toyota and certain of its officers and directors misrepresented and/or failed to disclose that there was a major design defect in Toyota’s acceleration system, which could cause unintended acceleration, thereby causing Toyota securities to trade at artificially inflated prices.