401(k) Plans Represent a Good Opportunity
for Brokers
Don’t Leave Money On
The Table

by Susan J. Lewis, QPA, APA
The defined contribution market, which includes the popular 401(k) plan, has become one of the largest and fastest-growing segments of the financial services business and it provides an exciting and potentially lucrative opportunity for brokers. This is especially true for those who are already working with small businesses. Frankly, if you’re not selling 401(k) plans, you may be leaving money on the table.

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Financial Planning

updated 4/14/10
New Target Date Funds
MassMutual enhanced its MassMutual Smart Architecture Investment Program with the addition of the following four target retirement date funds: MassMutual Select Destination Retirement 2015 Fund, MassMutual Select Destination Retirement 2025 Fund, MassMutual Select Destination Retirement 2035 Fund, and MassMutual Select Destination Retirement 2045 Fund. The addition of these funds brings MassMutual’s Select Destination Retirement Series to 10 fund options. For more information, call 888-309-3539.

Retirement Guide
The Insured Retirement Institute (IRI) has developed a white paper, “Top 10 Ways to Prepare for Retirement.” Here is a summary:
1. Select a target date for retirement.
2. Calculate how much you need to accumulate by the time you want to retire.
3. Find out how to maximize your Social Security benefits.
4. Take full advantage of tax-advantaged plans, such as employer-sponsored retirement plans, individual retirement accounts, and annuities.
5. If your employer doesn't have a pension or retirement plan, ask that one be started.
6. Don't touch your savings for anything but retirement.
7. Diversify your assets; be sure to include guaranteed income for life.
8. Ask questions. Get help. Seek the help of a professional financial advisor.
9. Start now to set goals.
10. Do a retirement plan and monitor your progress.
For more information, visit www.RetireOnYourTerms.org

Retirement Planning Pyramid Tool
To help raise public awareness of the need to plan for retirement, the Insured Retirement Institute (IRI) is sponsoring National Retirement Planning Week April 12-15. Kicking off its weeklong education efforts, IRI released its Retirement Planning Pyramid designed for use by consumers and financial advisors. For more information, visit www.retireonyourterms.org.

Medicare/Medicaid Guide
The MetLife Mature Market Institute is offering a free guide to the public titled, "The Essentials: Medicare and Medicaid." For more information, visit: www.maturemarketinstitute.com.

updated 3/17//10
Scorecard for Exchange-Traded Funds
The Retirement Plan Advisory Group (RPAG) is offering its Scorecard System for 401(k) plan sponsors to track, monitor, and rank more than 300 exchange traded funds. For more information, visit www.retirementplanadvisorygroup.com.


updated 11/18/09
Managed Account Service
Plan participants with Guardian Choice and The Guardian Advantage  group retirement products have a new enhancement to Stadion's managed account services. The investment lineup has been expanded to include collective investment funds advised by Stadion. The underlying investment vehicles will be exchange-traded funds, cash, and cash equivalents. The enhancements will allow Stadion to respond faster to changing market conditions while reducing investment expenses through the use of these lower cost investment options. For more information, visit: www.GuardianLife.com

updated 11/11/09
Guidance for Planners on Financial Recovery
Principal Financial Group issued a white paper for financial professionals, “Guidance for Sustaining Retirement Income Before and After Market Downturns.” It gives financial pros some insight on how to deal with market volatility just before the client’s retirement or early in retirement. The report suggests alternative retirement recovery strategies and tests them against an extreme market period. For more information, visit www.principal.com/research.

Closed End Funds Portfolio Information
Portfolio information is available for John Hancock closed-end funds, such as performance, top 10 holdings, and sector and industry weightings. For more information, visit www.jhfunds.com and click on "Closed-End Funds" under the "Funds & Performance" tab.

updated 8/26/09
Technical Opportunities Fund
The new John Hancock Technical Opportunities Fund incorporates an unconstrained, bottom-up technical approach that employs rigorous stock selection methods. It also provides the fund's sub-adviser with the flexibility to invest up to 100% of fund assets in cash. It is intended as a specialty strategy for asset allocation in retail portfolios, given its potential diversification benefits. For more information, visit www.manulife.com.

updated 8/12/09
Portfolio Information for Closed-End Funds
John Hancock Advisers, LLC is offering portfolio information, such as performance, top 10 holdings, and sector and industry weightings for its closed-end funds. This information is available at www.jhfunds.com by clicking on Closed-End Funds under Funds & Performance tab.

Updated Boomer Retirement Website
The Million Dollar Round Table (MDRT) updated its retirement solutions Web site,
http://links.mkt310.com/ctt?kn=7&m=2663352&r=MTc0ODA4ODQ3NDQS1&b=2&j=NzU3ODM0NzYS1&mt=1&rt=0 with new planning documents, presentations, seminar recaps and other tools for financial planners. The association also updated the site's navigation.

Defined Benefit Reporting
MassMutual introduced an enhanced financial reporting platform and distribution process for its defined benefit and investment-only clients. Defined benefit and investment-only clients will get their reports via electronic delivery. The secure e-mail delivery process also enables clients to view, print and share reports as needed. For more information, visit www.massmutual.com.

updated 7/8/09
Cash Balance Retirement Plan
The Hartford introduced a cash balance program designed to complement a 401(k) defined contribution program. It allows small businesses and professional entities to fund a plan that may generate as much as $195,000 in annual retirement income. Annual contributions can be $300,000 or more annually. Employer contributions can generally be deducted on the firm’s federal tax return, providing an additional incentive to plan for retirement. Unlike  a 401(k), the benefits from cash balance plans can be more heavily weighted towards business owners and key employees as long as certain requirements are met. For more information, call 860-843-8993

401(k) Recovery Predictor -- Do you Really Want to Know?
The Principal is offering an estimator that predicts how long it would take a participant to rebuild 401(k) balances after the stock market decline in 2008. It is based on analysis by the Employee Benefit Research Institute (EBRI) of more than 21 million 401(k) participants. For more information, visit www.theprincipal.com.

updated 6/3/09
Financial Planning
New York Life is offering financial planning services for union clients and their members. OnTarget Personal Advisor couples online access to extensive research, education and advice services through Morningstar Retirement Manager. New York Life's participant services include automatic rebalancing, targeted participant communications, and participant service support for member-directed plans.
New York Life Retirement Plan Services

updated 5/27/09
Recovering Unclaimed Retirement Benefits
PenChecks is offering a service that can match missing participants with their unclaimed retirement benefits at former employers. For more information, visit http://www.UnclaimedRetirementBenefits.com.

updated 5/6/09
Investment Management
Genworth Financial Wealth enhanced its investment management platform to help advisors guide their clients through the changing market. Portfolio and investment strategies offer greater choice when building an investment plan. The company also enhanced its separate and administrative account options. For more information, visit www.genworthwealth.com.

Three-Step Retirement Plan Enrollment
Principal Financial Group is offering a three-step approach to help employees overcome their inertia when it comes to retirement planning. The three-step process begins with deciding how much to save, followed by choosing an investment style, and then filling out an enrollment form. Additionally, The Principal customizes the enrollment workbook to include retirement plan features selected by the plan sponsor. For more information, visit www.principal.com.

Updated 4/16/09
Target-Date Funds
Prudential Retirement debuted a new retirement-plan designed to deliver guaranteed lifetime income, downside income protection, and growth potential for people with assets in target-date funds, life-cycle funds, or asset-allocation programs. For more information, visit www.prudential.com.

updated 3/25/09
Policy Locator Service
MIB's Policy Locator Service (www.policylocator.com) is designed to help uncover in-force life insurance policies in North America. The database contains more than 170 million records representing applications processed during the past 13 years. For more information, visit www.policylocator.com.

updated 2/18/09
Financial Planning
MassMutual introduced MassMutual RetireSmart Academy, an interactive online resource for retirement plan participants. Participants can review account-specific information, perform transactions, and have an interactive experience that can help them make good financial planning decisions. For more information, visit www.massmutual.com/retire.

Investment Management Program
Genworth Financial Investment Services launched a fee-based money management platform. The Managed Wealth Advantage is an investment advisory program with a series of mutual fund portfolios. Financial can blend mutual funds in a single account that is tailored to meet the client’s needs. There are more than 150 mutual funds representing active and passive strategies from more than 60 fund families. For more information, visit www.Genworth.com.

updated 12/24/08
Treasury Money Market Program
Prudential Financial announced that some of its funds will participate in the Treasury Dept.’s Temporary Guarantee Program for Money Market Mutual Funds.
The program was developed in response to recent market volatility and temporary dislocations in credit markets. It provides a temporary guarantee to a shareholder in a participating money market fund as of the close of business on September 19, 2008 up to the number of shares owned on that date. The Treasury Department recently extended the program, until April 30, to support ongoing stability in the markets. The program had been set to expire on December 18, 2008. The temporary guarantee is triggered if a participating fund's market-based net asset value breaks the buck—falls below $0.99. For more information, visit www.news.prudential.com.

updated 12/03/08
Networking Webinar Series
This month, the CPCU Society is hosting a three-part webinar series:

• Thursday, December 4, 2008: No Fear Networking: How to Enjoy Building Your Network.
• Thursday, December 11, 2008: Engaging Your Network: How to Discuss Your Business or Career Strengths with Others.
• Thursday, December 18, 2008: Referral Networking: How to Rev Up Your Referral Engine So Your Network Works for You.

Register online at www.cpcusociety.org

updated 6/25/08
Financial Planning Training for Advisors
Sun Life Financial introduced Retirement Blueprint, a program designed to help advisors enhance their income planning skills and engage clients in the retirement income conversation and planning process. An advisor kit contains materials to survey the opportunity, custom design income plans, and cultivate their client relationships. In addition, the program will offer one-hour plug-and-play wholesaler-led training presentations on topics relevant to retirement income planning such as maximizing social security benefits, the IRA rollover opportunity, planning for healthcare expenses, and demystifying variable annuity living benefits. For more information, visit www.sunlife-usa.com.

updated 6/18/08
Managed Bond Fund
MassMutual announced that Its MML Managed Bond Fund was awarded a Lipper Performance Achievement Certificate. Lipper presents awards of Performance Achievement Certificates annually to funds that rank first in their category for one-year, five-year or ten-year periods within variable insurance products.

Available only through purchasing certain MassMutual products, the MML Managed Bond Fund is one of several long-term investment choices within many variable insurance products from MassMutual, including annuities and life insurance. Fore more information, visit www.massmutual.com.

updated 6/11/08
Reverse Mortgage Borrower Advocacy Program
Financial Freedom launched the Reverse Mortgage Borrower Advocacy Program to help consumers make informed decisions about reverse mortgages. The program, which will include a wide range of educational tools and materials, kicks off with two videos, “Is a Reverse Mortgage Right for You?” and “Uses for a Reverse Mortgage.” The videos can be viewed at www.financialfreedom.com/consumersafeguards.aspx?id=imgbtn1. The company is also offering a series of consumer handbooks on reverse mortgages.

updated 5/7/08
Online Financial Tools
AXA Equitable redesigned its website (www.axa-equitable.com.) Enhancements include a Life Events Learning Center where visitors can get help understanding the important financial considerations at each stage of life, such as benefit considerations when landing a new job, caring for aging parents, and transferring accumulated wealth.

Social Security Decision Tool
MetLife launched an online tool to help people decide when to take Social Security benefits. For more information, visit (www.metlife.com/SocialSecurity).

updated 1/30/08
Retirement Plan with Fiduciary Protection
Nationwide Financial Services Inc. introduced a simpler retirement plan solution that provides documented fiduciary protection. The company says that the combination of the target maturity retirement funds with a mutual fund window creates several advantages for plan sponsors. For more information, call 888-262-401k.

Retirement Plan Administration Tool
Transamerica launched the industry’s first all-inclusive Web-based, virtually paperless plan administration tool for third party administrators. It allows for paperless workflow. It offers online plan installation, an e-mail notification system, and enhanced security. For more information, visit www.TA-Retirement.com.updated 1/23/08
Lifecycle Retirement Income Fund
TIAA-CREF introduced the Lifecycle Retirement Income Fund. The low-cost, well-diversified mutual fund seeks high total return over time primarily through income, with a secondary emphasis on capital appreciation. The Fund is intended for the following types of investors:

• Investors who are nearing retirement.
• Investors who want to roll over assets to an IRA from another tax-advantaged retirement plan, such as a 403(b) or 401(k).
• Investors who are already in retirement and want the convenience and flexibility of a diversified income-generating fund.

For more information, call 877-518-9161 or visit to www.tiaa-cref.org 

1/16/08
Reverse Mortgages
Financial Freedom, a reverse mortgage lender, added two options to its product suite--HECM Monthly Libor 75 and HECM Monthly LIBOR 85. The interest rate for these products is calculated based on the one-month LIBOR index plus the margin. They offer a somewhat higher cash benefit, a larger monthly payment, and the opportunity to geta reduced origination fee. For more information, visit www.financialfreedom.com

Mutual Fund
Jackson National Life Insurance Company added two portfolios to its mutual funds, which are available to advisors through Jackson National Life Distributors LLC. They offer seven distinct strategies to address the diversification and asset growth potential as investors navigate the retirement planning process. For more information, call 517-702-2477, e-mail thomas.kelleher@jnli.com, or visit www.jnl.com

Donut Hole Coverage
EZ Meds USA is offering a solution for Medicare eligible people to get costly prescriptions when they reach the Plan D donut hole/coverage gap. The plan provides the 500 top name brand drugs with no deductibles, co-insurance, co-payments, or limit on the number of medications taken per month. This program can work with any Part D Plan. It is not a pharmacy discount card. The average client saved $3,000 or more in 2007. For more information, contact Wayne Goshkarian at wayne@yourezmeds.com or 602-312-6488.

updated 12/5/07
401(k)s and Annuities
Pacific Life Insurance Company added a suite of variable annuities as a funding option for its Pacific Life Individual(k) Program. With five PL portfolio optimization funds and 15 individual mutual funds, the program is a cost-effective 401(k) designed for self-employed business owners and their spouses. For more information, visit www.PacificLife.com.

updated 11/21/07
Pre-Retiree Services
Transamerica Life Insurance Company launched a business called “Transamerica Retirement Management Inc.” The division is being promoted to consumers as “SecurePath by Transamerica.” The division was designed to help create retirement strategies for pre-retirement consumers and their employers. The SecurePath service provides guidance, tools, and resources to employees who are on the verge of retirement. The service also fills the gap for defined-contribution plan and defined-benefit plan sponsors. Clients get access to a team of transition consultants. For more information, visit www.securepathbytransamerica.com.
updated 10/17/07
Conservation and Investment
MassMutual will donate to The Conservation Fund for every retirement plan sponsor that replaces paper delivery with e-prospectus delivery. Each time an investment change takes place, the plan sponsor and participant get an e-mail notification with a link to the most recent prospectus. To sign up for electronic prospectus delivery, plan sponsors and participants should visit www.massmutual.com/retire.

Reverse Mortgage
Financial Freedom introduced its home equity conversion mortgage (HECM).
      With a monthly London Interbank offered rate (LIBOR). The interest rate is based on the one-month LIBOR index and gives borrowers all the features and benefits of other HECM reverse mortgages. For more information, visit www.financialfreedom.com.


updated 10/3/07
Retirement Plan Warranty
MassMutual's Retirement Services Division introduced its Fiduciary Warranty. It is for qualifying plans that include investment options available through MassMutual's Smart Architecture Investment Program. The Warranty will provide the following:

• Independent certification that ERISA standards of fiduciary prudence have been applied to investment identification, screening and monitoring.
• Independent certification that investment options under MassMutual's Smart Architecture Investment Program provide a suitable basis for plan participants to construct well-diversified investment portfolios for retirement.
• The requirement under Section 404(c) of ERISA to offer a broad range of  investment alternatives will be satisfied if the designated asset categories are selected.
• Investment options made available include balanced and target date investments that meet the Dept. of Labor's proposed requirements for Qualified Default Investment Alternatives (QDIA).
  

For more information, call 866-444-2601 or e-mail rssalesinfo@massmutual.com.

HSA
Under a new agreement, Health Net members enrolled in a health savings account (HSA) compatible plan will have access to a tax-advantaged HSA from Bank of America.  For example, members can choose between using a Bank of America HSA Visa debit card to pay for their qualified health care expenses or go online and request their health care providers be paid directly from their account using online bill payment.  For more information, visit www.healthnet.com.

updated 7/18/07
Guidance on 403(b) Rule Changes
Not-for-profit organizations and public schools, colleges, and universities that sponsor 403(b) plans face increased administrative responsibilities because of new IRS regulations this summer. The regulations are meant to bring some 403(b) plan rules in line with requirements for 401(k) and public 457(b) plans. The Principal Financial Group says that it is ready to help financial professionals and their clients through a challenging transition. The Principal has hired a renowned 403(b) expert to create an easy-to-understand review of the new regulations. For more information, visit www.principal.com/about/news/research.htm.
updated 7/11//07
Annual Financial Checkup
Principal Financial Group developed a comprehensive annual checkup called “Financial Security Review.” In the kit, financial professionals have everything they need to initiate and complete a review of existing products and determine financial needs. For more information, visit principal.com .

Update 5/30/07
Defined Contribution Plan Rider
Lincoln National is offering the i4LIFE Advantage rider for its employer-sponsored defined contribution plans. Participants can convert retirement plan savings into lifetime income with an opportunity for growth. Participants have a minimum payment guarantee while retaining access to and control of their assets. For more information, call 800-454-6265. 

updated 11/01/06
Financial Planning
The Society of Financial Service Professionals (FSP) added a specialty to its roster of professional interest sections. Materials developed for the Investment Management section will focus on investment and portfolio analysis, asset allocation, risk tolerance, prioritizing investments, product information and news, planning methods, and taxation. For more information, visit www.financialpro.org/membership/sections_mb.cfm.
(updated 5/31/06)
Retirement Planning Program
Genworth Financial teamed up with LifeMark Partners to combine fixed life, annuities, and long-term care insurance in a unified retirement marketing program. “Ride the Wave” is offered to LifeMark’s 46 brokerage general agents and the 50,000 insurance brokers who do business through them. The program responds to Baby Boomer retirement demographics on three key fronts -- asset accumulation, protection, and income distribution. Ride the Wave will deliver consumer research, collaborative marketing strategies, personal broker support, and competitive products. For more information, visit www.genworth.com.
(updated 4/26/06)
Financial Planning
Guardian’s proprietary Living Balance Sheet system allows its field representatives to help clients manage their cash flow, investments, wealth protection and risk management issues. This Web-based platform also gives clients an instant snapshot of their total wealth –– and all of its specific components. It delivers real-time net worth positioning, financial alerts, electronic document vaults, and even tracks accumulated sky miles. For more information, visit www.guardianlife.com.


(update 3/29/06)
Retirement Advice Service
Standard Insurance Company created a retirement savings tool, “Portfolio Progression,” for retirement plan participants. It creates a personal investment strategy based on a participant’s risk tolerance and target retirement age. The service automatically transitions the participant’s retirement portfolio to increasingly conservative allocations between the date of enrollment and the target retirement age. For more information, visit www.standard.com.

(updated 3/15/06)
401(k) Checkup
Nationwide Financial Services Inc. introduced its “Quarterly Plan Checkup.” The free electronic report offers a comprehensive look at all aspects of a company’s defined contribution plan. A consolidated package of plan statements gives sponsors regular updates on investment performance, plan processes, and fiduciary responsibilities. The report also gives investment professionals frequent opportunity to engage clients about their employee retirement plans. For more information, visit www.nationwide.com.

(updated 2/15/06)
457(b)
Salary reduction and transfers from other 457(b) plans can fund Aviva Life Insurance Company’s 457(b) plan products -- Flex 9, Aviva Flex Select, and Aviva Flex Plus, a premium bonus product. In addition, two Aviva fixed indexed annuities will be available for the 457(b) governmental plan market in the second quarter of this year. For more information, call 888-284-8287, ext. 6199 or e-mail rperkoski@avivausa.com.

(updated 11/16/05)
Demystifying Roth 401(k)s
The Hartford Financial Services Group Inc. introduced an educational program designed to help financial professionals, plan sponsors, and retirement plan participants prepare for the new Roth 401(k). The Roth 401(k) allows investors to designate certain 401(k) contributions as after-tax, enabling them to withdraw these same dollars tax-free at retirement. This feature can be very significant for the retirement market as Baby Boomers retire in record numbers and seek greater flexibility and control in how they draw assets at retirement. For more information, visit www.thehartford.com .

(updated 9/14/05)
Wireless 401(k) Enrollment
MassMutual's customized electronic enrollment walks participants through retirement plan enrollment. Participants can also increase deferrals, and change asset allocations on the spot. During a MassMutual enrollment meeting, each attendee uses a secure hand-held device that communicates wirelessly with a laptop, operated by a
MassMutual communication specialist. For more information, visit www.ps.massmutual.com or call (888) 626-4911.

(updated 9/02/05)
Online Financial Seminar for Women
MassMutual Financial Group is offering an online financial seminar designed to help women assess their personal finances and develop long-term strategies. For more information, visit www.massmutual.com.

updated (8/23/05)
401(k) Product. AXA Equitable Life Insurance Company, a subsidiary of AXA Financial inc., launched Retirement Strategies, a 401(k) pension plan product designed for small- to mid-size businesses. Retirement Strategies is a group deferred variable annuity that provides flexibility in plan design and pricing, a broad range of investment options, and state-of-the-art record-keeping services. It will take the place of the company's Momentum Series products for new sales, except for the owner's 401(k) plan, which will continue in Momentum. For more information, call 212-314-2811.

Retiree Benefit Compliance. Keenan, the largest privately held brokerage firm in California, introduced ?Futuris,? a comprehensive actuarial, consulting, cost management and investment program that provides all necessary Governmental Accounting Standards Board (GASB) 43 & 45 compliance elements from a single source, while mitigating fiduciary liability for the public agency. Over the next three years, these new accounting standards from GASB will apply to local government agencies and school districts to recognize their liabilities for retiree health and welfare benefits. For more information, visit www.keenan.com.

Special Needs Calculator. MetLife's introduced a free online calculator to help parents consider financial planning for children with special needs. The Census Bureau estimates that one in 10 Americans between the ages of 16 and 64 suffers from some form of mental, physical, or emotional disability. The MetDESK Special Needs Calculator is an easy online tool. The user can complete the process in less than 30 minutes as a first step in calculating long-term financial planning for a child who is likely to need lifelong care.
For more information,
visit www.metlife.com.

Succession Planning. John Hancock introduced a new business succession planning sales tool kit. to help advisors educate their clients about succession planning. It highlights the importance of planning to ensure the survival of the business if something happens to a key employee or owner. It contains a variety of materials to help advisors understand and present succession-planning concepts to business clients and prospects, including sales strategies, case studies, a producer guide, and a CD-ROM. For more information, call 888-266-7498 and select option 3, or e-mail advancedmarkets@jhancock.com.

Employee Savings Plan. Principal Financial Group introduced a turnkey savings tool to help employees boost retirement savings. Principal Step Ahead Retirement Option allows plan participants to increase their contributions automatically by a set percentage each year. Participants specify the number of years they want their savings to be "stepped ahead" within the maximum allowed by the plan or the IRS. Employers maintain control by selecting the month for the automatic increase that is right for their company. For more information, call (800) 986-3343 or visit www.principal.com.
––––––––––––
Individual-k Program. The new Pacific Life Individual (k) Program is a cost-effective 401( k) for self-employed business owners and their spouses. It offers five asset allocation "fund of funds" to help investors diversify among management companies and investments. For more information, call (800) 800-7646 www.PacificLife.com.
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401( k). The Hartford Financial Services Group launched Aviator 401( k). It has been custom-built for businesses with small- to mid-sized plans. For more information, call (860) 547-5000
or visit www.thehartford.com

 

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