After meeting with Trevor and determining how many employees would be eligible to participate in the 401(k), we obtained several quotes from 401(k) providers to get pricing and required contribution flows for the 401(k) plan’s first year of existence. Trevor was not comfortable with the costs associated with the start-up 401(K), or the amount of contributions required to get the pricing offered. Trevor asked us to help him evaluate other options.

After presenting the retirement plan options to Trevor, we decided that a Simple IRA plan would help Trevor best accomplish his goals for the short term. Then, when the plan had built up enough assets, we would establish a 401(k) plan at a more attractive cost structure.

We showed Kevin how he could establish a low-cost single-person 401(k) plan for his new company using his rollover IRA and take a loan from the 401(k) plan to free up $50,000 to purchase needed equipment for the business. Not only was Kevin able to access his $50,000 loan in a short two weeks without needing to obtain bank approval, he has five years to pay the loan back. And although he is paying interest on the loan, the interest he pays is going back into his 401(k) plan which will build up his retirement account and benefit him in the long run.

Claudia and Gerald explained that they wanted this inheritance to benefit them as they planned for their retirement. But it was also important to Claudia and Gerald that they use a small portion of the inheritance to help their children establish their own retirement nest egg. Claudia and Gerald wanted to know the best way to help their children plan for their own retirements.

After considering all of their concerns and financial goals of Claudia, Gerald and the children we recommended a mix of investment strategies, taking advantage of tax-free or tax-deferred growth wherever possible. Now Gerald and Claudia have an investment strategy that will ensure that they will be able to retire in a few short years and live comfortably in retirement, and their children have a roadmap for retirement thanks to the generous gifts from their parents.

After presenting the retirement plan options to Juan and Carlita, we determined that a 401(k) plan would best fit their needs.

Once Juan and Carlita agreed that establishing a 401(k) plan was their best option, we evaluated all of the providers and platforms available. Acting in the role of a fiduciary, we presented the owners with three options based on several criteria: investment options, flexibility for participants, online access, reporting and cost. In helping the owners navigate the three options, we determined that one provider’s solution stood out above the others in providing the most robust investment options and the lowest cost.

After establishing the relationship with the 401(k) provider we selected the funds for the 401(k) plan, established model investment portfolios for participants based on risk tolerance and time horizon, worked with the provider to create enrollment kits and conducted enrollment meetings.

We continue to administer the 401(k) plan five years later, and hold enrollment and/or review meetings twice a year or more, depending on the needs of participants.

Vince and Judy’s portfolio consisted of many closed-end funds and dividend-paying stocks, and their monthly income would vary based on the dividends being paid out each month. Every month, Judy would painstakingly track, in her notebook, the dividend amounts expected and actually received from each of their funds or stocks so that they could budget for their expenditures.

We explained to Vince and Judy that there was a better approach to investing that would allow their portfolio to produce a more consistent income flow for them while growing their portfolio steadily over time. Utilizing a well-diversified, low-cost strategy that replaced many of their dividend-paying stocks and closed-end funds, we demonstrated how we could segment portions of their portfolio for different purposes. One segment of Vince and Judy’s portfolio would produce current retirement income and would be insulated from market volatility. Another portion of their portfolio would be strategically allocated for mid to long-term growth, thereby growing the value of the portfolio and allowing for future income needs.

Vince has sadly passed-on, but Judy is still receiving the income necessary for her to live a comfortable retirement. Additionally, her portfolio continues to grow at a conservative rate and it is very likely that her children will have a significant inheritance when Judy passes.

This injury settlement would have to replace all future wages and income from employment.

During our meeting with Don and Kathy we were able to determine their income and portfolio growth needs from this injury settlement money. We were able to present Don and Kathy with a customized investment strategy that would make up for Don’s lost income, yet grow with inflation to ensure that they would have an adequate income source in the future.

A short six months after starting to work together, Don suffered a serious accident related to his injury and died unexpectedly leaving Don and Kathy’s plans in limbo. After a month or two passed, we met with Kathy again to determine how her needs would change. After meeting with Kathy, we were able to adjust her income and growth strategies and five years later her portfolio continues to grow and she is still receiving the necessary income from the portfolio.