RETIREMENT PLAN SERVICES

We offer a competitive, comprehensive suite of retirement plan services by integrating our Flat Fee-Only approach – both in total cost structure and in performance of the underlying investment choices. FPL Capital Management can service your plan as either a 3(21) or 3(38) fiduciary.

Plan services are very appealing and cost-effective for small to medium size professional organizations which have high averages for participant account balances.

TYPES OF PLANS WE SERVICE
401(K)
Simplified Employee Pension (SEP)
Profit Sharing
Defined Benefit
Simple IRA
Cash Balance
Roth & Traditional IRA
PARTICIPANT SERVICES

RISK EVALUATION

Built on a Nobel Prize-winning framework, we provide a Risk Evaluation for all participants using our Risk Alignment Tool that quantifies the semantics of the financial advice industry, replacing confusing and subjective terms like “moderately conservative” and “moderately aggressive” with the Risk Number, a number between 1 and 99 that pinpoints a participant’s exact comfort zone for downside risk and potential upside gain. We determine a recommended risk exposure to match the participant’s Risk Number and chart a clearly defined path to their goals which is then integrated into the Participant’s Investment Policy Statement.

How it Works

Risk Number Capture- The first step is to have a participant answer a 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what they’re willing to risk for potential gains. Then we’ll pinpoint their exact Risk Number to guide our decision making process.

Portfolio Alignment- After pinpointing their Risk Number, we’ll assign a portfolio that aligns with their personal preferences and priorities, allowing them to feel comfortable with their expected outcomes. The resulting proposed portfolio will include projections for the potential gains and losses we should expect over time.

INVESTMENT POLICY STATEMENT

We construct an Investment Policy Statement for each participant to provide the following:

Establish a clear understand of the participant’s goals and objectives

Report participant risk evaluation results and summarize investment philosophy

Offer guidance regarding the investment of assets incorporating their risk considerations, tax issues and time horizon

Identify recommended target asset allocations, establishing a long-term approach

Establish a basis for evaluating investment results

Define monitoring procedures— rebalancing procedures and quarterly portfolio reporting

WEALTH MANAGEMENT PORTAL

We help participants organize their financial life by providing a secure, digital Wealth Management Portal. They will enjoy access to their personal financial website from any device.

Our Wealth Management Portal provides access to eMoney Advisor’s award-winning financial planning software, account aggregation and resources to prepare your secure financial future. eMoney Advisor is owned by Fidelity Investments.

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Account Aggregation

A consolidated view of your assets and liabilities, updated daily.

Financial Planning

Set goals and keep track of your progress as you work to reach your financial goals.

Workshops

Understand the impact of your financial decisions and make your goals a reality.

Spending

Track spending habits, monitor cash flow and stay on the right financial path.

Investments

Interactive charts and detailed summaries increase knowledge of your financial accounts.

Education

An extensive library of videos, articles and other resources to increase your financial knowledge.

PLAN SERVICES

PORTFOLIO MANAGEMENT

Plans have access to our Model Portfolios which are designed to emphasize market segments of higher expected returns, minimize turnover and reduce overall expenses.

  • Highly diversified and efficient, these comprehensive solutions are designed to serve a wide range of participant needs and risk tolerances – from conservative to ultra-aggressive
model portfolios

Model Portfolios can be used as core strategies or as building blocks to create the ideal portfolio for the particpant. Detailed information for each Model Portfolio can be found on our Model Folio page, including holdings, model allocation, benchmark allocation and historical performance published monthly.

In addition to our Model Portfolios, we also offer a carefully selected list of investments for Plan Participants to customize their portfolio. 

ADDITIONAL AVAILABLE INVESTMENTS

Most retirement plans strictly invest in various forms of publicly traded capital market investments such as stocks, bonds, mutual funds, and ETF’s.  We believe that individual investors should not be denied access to other forms of investments that are accessible to institutional investors.  We allow and oversee investments in Private Funds.

These include:

  • Private Equity Funds
  • Private Credit/Debt Funds
  • Private Equity Real Estate Funds

Typically, minimum investment requirements range from $2 million to $10 million. However, FPL Capital Management has arrangement for its clients to access these funds at significantly lower minimums.  In some cases, as low as $50,000.

FLEXIBILITY

We collaborate with various services providers (Third-Party Administrators, Recordkeepers and Custodians) to ensure the plan is running smoothly. You can keep your current service providers or we can recommend one for you.

SELF-DIRECTED BROKERAGE ACCOUNT (SDBA)

With Self-Directed Brokerage Accounts (SBDAs), participants can go beyond their plan’s preselected investment lineup and gain access to a variety of additional investment choices. Participants can take control over their investment decisions and tailor strategies to their retirement goals.

EXPANDED INVESTMENT OPTIONS

Access to a variety of investment vehicles not available or allowed in 401(K)s, including:

  • FPLCM Model Portfolios
  • Interval mutual funds
  • Private non-traded investments such as BDCs or REITs
  • Private Equity Funds
  • Private Credit/Debt Funds
  • Private Equity Real Estate Funds
  • Private Partnerships (LLCs and LLPs)
  • Hedge Funds
  • Individual stocks
  • Bonds
  • CDs
  • Unit investment trusts (UITs)
  • Futures
  • Options

Typically, the private funds listed above have a minimum investment amount of $2 million to $10 million. However, FPL Capital Management has arranged for its clients to access these funds at significantly lower minimums. In some cases, as low as $50,000.

FINANCIAL PROFESSIONAL ACCESS

Participants have the option of managing the SDBA themselves or authorizing a financial professional or FPL Capital Management to manage the account on their behalf.

FEES

We charge a flat annual fee per participant. The fee will never increase as plan assets grow (like with most advisors who charge an assets under management fee). Plan fees start at $2,500.

PLAN SPONSORS

There are four different components to consider when maintaining a retirement plan:

  1. Investment Manager (ERISA 3(21) or 3(38) Fiduciary)
  2. Third-Party Administrator (commonly known as TPA)
  3. Recordkeeper
  4. Custodian

INVESTMENT MANAGER (ERISA 3(21) OR 3(38) FIDUCIARY)

FPL Capital Management can act in either ERISA 3(21) or 3(38) fiduciary capacity.  Our minimum annual fee is $2,500 and is charged on per Participant basis.  Our fee is NOT based on assets under management.

TPA, RECORDKEEPER AND CUSTODIAN SERVICE PROVIDERS

There are companies that offer TPA, Recordkeeper, and Custodian services bundled or unbundled.  Vanguard Small Business Retirement Plans (SBRP), Dimensional DC, and Employee Fiduciary offer TPA, Recordkeeper, and Custodian bundled and unbundled packages.  All three providers allow outside Investment Managers to act as ERISA fiduciaries on plans under their service.

Vanguard SBRP Dimensional DC Employee Fiduciary
Base Fee $3,475 $3,500 $1,500 + 0.08% of AUM
# of Participants Included 15 0* 30
TPA Fee Included Included Included
Recordkeeping Fee1 Inlcuded Included Included
Custodian Fee1 Included Included Included
Plan Conversion Fee2 $850 $1,000 $1,000
New Plan Setup Fee2 $1,000 $1,000 $500
Self-Directed Brokerage Acct $50 $100 $100

*Per Participant ranges between $119 – $232 (based on the usage of Dimensional Funds in the Plan).
1 Services and fees can be unbundled.
2 Fee can generally be waived.

Any new Plans or Plans valued less than $2,500,000 probably should consider Employee Fiduciary as their price is most attractive at those asset values.  Plans above the $2,500,000 mark should consider Vanguard SBRP or Dimensional DC.  Dimensional will be slightly more expensive because of their additional per Participant fee.  The per Participant fee ranges between $119 and $232.  The rate is based on the percentage of assets allocated to DFA Funds.

For example, if the Plan uses 100% DFA Funds, then the per Participant fee will be $119.  If the Plan uses 25% DFA Funds, then the per Participant fee is $204.  Vanguard SBRP will be the most attractive for Plans valued over $2,500,000.

All three providers offer similar fund offerings.  However, Dimensional DC does offer most of the Vanguard Institutional Share Class funds through their platform.  Vanguard SBRP and Employee Fiduciary do not.

Neither, Vanguard SBRP, Dimensional DC, nor Employee Fiduciary offer TPA services for Cash Balance Plans.  If you would like a recommendation on a TPA that services Cash Balance Plans, please contact us for more information.

All offer the option to establish Self-Directed Brokerage Accounts (SDBA’s).  If the Plan Sponsor is using Vanguard SBRP or Employee Fiduciary as the Plan’s TPA, the SDBA’s will be held at TD Ameritrade.  Dimensional DC’s SDBA’s will be held at Schwab.  If an outside TPA is being used, then the SDBA’s can be held at the custodian of TPA’s choice.

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