Not on my nickel for retirement investors1.6


? 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 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?

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Understand how to read your statement to see your true performance?

©2013 Not On My Nickel

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Learn how to start saving money now, without fees, so you will have more for retirement?


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Learn how much you need to invest today to do the things you want to in retirement?


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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?


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MAJOR PROBLEMS WITH THE RETIREMENT INDUSTRY TODAY!


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 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


America’s retirement system desperately needs an overhaul to spare workers’ retirement savings from high fees, an unhealthy advisory dependence and poorly performing investments.

http://www.demos.org/sites/default/files/publications/TheRetirementSavingsDrain-Demos_0.pdf


FACT

LOOK

Recent studies show many 401(k) plans hold poorly performing options

BrightScope



http://www.brightscope.com/401k-rating/300499/Darden-Restaurants-Inc/304963/Darden-Savings-Plan

http://www.brightscope.com/401k-rating/300499/Darden-Restaurants-Inc/304963/Darden-Savings-Plan

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



http://theinvestmentsblog.blogspot.fr/2013/04/buffett-and-munger-modern-portfolio.html

http://theinvestmentsblog.blogspot.fr/2013/04/buffett-and-munger-modern-portfolio.html

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



http://www.usfinancialcapability.org/downloads/NFCS_2012_Report_Natl_Findings.pdf

http://www.usfinancialcapability.org/downloads/NFCS_2012_Report_Natl_Findings.pdf

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






DO YOU KNOW...?


DO YOU KNOW...?Which mutual funds you are invested in?


DO YOU KNOW...?Which mutual funds you are invested in?Which investment company manages your money?


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?


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?


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?


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?


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?


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


People are demanding transparency about the fees they pay.

IN OUT



IN OUTActive management Passive management (Index funds) by financial advisors based on Modern Portfolio Theory



IN OUTDIY direct investing Conflicts of interests with middlemen advisors



IN OUTTrue portfolio manager fiduciaries

Self-serving financial advisors who present themselves as fiduciaries



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



IN OUTProven balanced funds Controversial Target Date Funds



IN OUTKeeping $100,000s in your retirement savings

Putting money in financial advisors’ pockets!


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


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?


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



Prudent alternatives to Target Date Funds

Ongoing research, education and engagement through interactive tools


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






Education to keep you engaged to monitor your investing choices

HERE’S HOW IT WORKS...


Eliminate the middleman from your retirement investing equation


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.




Low management feesTotal expense ratio is less than 0.75%.




Sustainable economic valueMutual funds who contribute to the improvement of the U.S. economy.




Low portfolio turnoverMutual funds with 15% or less portfolio turnover, when feasible.




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.




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?




Fact check the short list of portfolio managers against third-party rating services

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Fact check the short list against their SEC filings3


2




Fact check the short list against their SEC filings3

The result is a handful of proven, active portfolio managers for employees to choose from


Choose from conflict-free, independent research resulting in only the best-performing mutual funds at the lowest fees


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





Qualified with decades of experience managing retirement assets that outperform their benchmark

Never driven by computer models or algorithms



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


Choose Cash investments using the online step-by-step guide


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

Stay connected with Not On My Nickel’s educational pieces




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See for yourself how you can:


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:



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





Engage in investing through transparency and education







Engage in investing through transparency and education

Take control of your financial future




Click to SubscribeContact us with questions:[email protected]

http://notonmynickel.com/pricing/

http://notonmynickel.com/pricing/

mailto:[email protected]

mailto:[email protected]


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

http://www.NotOnMyNickel.com

http://www.NotOnMyNickel.com

Not on my nickel for retirement investors1.6

Self Improvement

Transcript of Not on my nickel for retirement investors1.6