Retirement Plan Fee Disclosure

PresentationKeys to understanding your

retirement plan

© 2012 Envoy Financial, Inc. All rights reserved.Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920 Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor.First Use: July 24, 2012

Presented by: Bruce Bruinsma

CEO, Envoy Financial

Counting the Cost

All Retirement Plans have costs

Knowing what services are available to you and the cost of those services is integral to understanding your retirement plan

Using those services is theway you reap the greatest benefit from the plan

Counting The Cost

Connecting to your Participant Web Portal and then accessing the Resource Center is the best way to understand the services available

Counting The Cost

Utilizing those resources brings the greatest “added value” to this plan provided by your Employer

Counting The Cost

Retirement Plan Components

The elements that make up a retirement plan

Investments: ◦ Advice to the Plan Sponsor

Legal Documents that make up the Plan:◦ Summary Plan Description

Third Party Administration Services: ◦ Makes sure every activity is legal

Recordkeeping: ◦ Makes sure all activities are

tracked and reported accurately and in a timely manner

Your Retirement Plan is Composed of Several Parts

Some costs are paid for directly by the Plan Sponsor

Some costs are paid for by the Participants of the Plan

Assuming that your employer makes a contribution to the Plan or facilitates its existence, the employer is paying for a percentage of the Plan expenses

There Are Costs for These Services

403(b) used by non profit organizations

401(k) used by for profit organizations

IRA used by individuals457 used by governmental entities

The Type of Plan You Have is a DEFINED CONTRIBUTION PLAN

IRS Code section 405(c)(4) says that:◦ Each year your Employer, the Plan Sponsor,

must provide two documents to you The Summary Plan Description The Fee Disclosure Document

◦ Further, beginning with your quarterly statement made available after September, 2012, the actual expenses incurred must be shown on that statement

◦ Envoy Financial assists your Employer with these activities

New Regulations Require This Disclosure (and that is a good thing!)

Information about the plan in general, including any expenses you may incur through participation in the plan, or through taking advantage of any special plan features

Information about the investment options available to you including the expense associated with those options

What Will You See on the Annual Disclosure Statement

Expense Categories

Expenses for delivery of various services

Here are the categories of expenses detailed in the Disclosure Report:

◦ Administrative Expenses: Custodial, Recordkeeping and Advisory,

for example

◦ Individual Expenses: Loans and distributions, for example

◦ The individual Fund Expenses are detailed for each fund on your basic menu of offerings

Categories of Expenses

Your Retirement Plan Oversight Committee, with assistance from Envoy, is responsible for your investment menu.

Each mutual fund, professionally managed investment account, has expenses associated with it. The next chart illustrates some funds and their expenses.

How is the Menu of Funds Selected?

Examples of Fund Information

Expense information

Returns information

Beginning with the September, 2012 quarterly statement, fee disclosure information specific to you will be included

We will address the format for that disclosure in another presentation

Be aware that it is coming

In Addition, Disclosure Information Will Be Added to Your Quarterly Report

First, know that your Retirement Plan Oversight Committee is overseeing your Plan

Second, be confident that the expenses are reasonable and they maintain the service and support of your Plan

Finally, take advantage of all the available tools for your Plan, educational and other resources applicable to your situation

Envoy Financial website – Retirement Matters, Resources, Calculators, etc.

What To Do With All This Disclosure Information

Transparency is a good thingWelcome to the “next step” in

retirement planning◦ Envoy Choice!

Fee Disclosure

Contact Us For Assistance◦Participant Service:

(888) 879-1376, option 1 Participant@EnvoyFinancial.com

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Services provided by:

Envoy TPA and Recordkeeping, Inc. Third Party Administration Envoy TPA and Recordkeeping, Inc. Recordkeeping Services Envoy Advisory, Inc. Registered Investment Advisor Envoy Securities, LLC Broker/Dealer Member FINRA/SIPC Envoy Financial, Inc. Education, Sales and Marketing