The 401(K) Road Map: A Fiduciary’S Guide to 401(K) Strategy

By Peter Weitz

If you are involved in any decision regarding your companys 401(k) plan, there is a high probability you are acting as a fiduciary. The 401(k) Road Map defines what that role entails and offers a plan, process, and a discipline to help navigate through the maze of government rules and regulations ensuring compliance with the Department of Labor and the Internal Revenue Service. Through the use of anecdotal stories, real-life examples, and analogies, the book offers a simpler way to understand terminology, requirements, government forms, rules, and processes. It will serve as a tremendous tool and a reference for HR directors, CFOs, and their staff.

• Language: English
• Publisher: Balboa Press
• Release date: Jan 12, 2017
• ISBN: 9781504370721

Peter Weitz

Peter is a senior vice president and equity partner of Fusion Analytics Investment Partners. He joined the industry in 2003 after spending many years in real estate development in Washington, DC. After several years working for a large retail wire house, he became uncomfortable with the inherent conflicts of interest at major brokerage institutions and joined the Independent Registered Investment firm Fusion Analytics in 2009, opening its South Florida office. A dual graduate of George Washington University, Peter holds both an undergraduate degree in business and a masters degree in Finance. His primary areas of practice include corporate 401(k) and defined benefit plans assisting plan sponsors with their investment, fiduciary, employee education, and compliance responsibilities as well as individual retirement planning and wealth retention. He has published several articles and spoken on numerous panels regarding ERISA regulations as they pertain to defined contribution and benefit plans and has been recognized as a top performer nationally in the 401(k) marketplace by several 401(k) plan publications. He also hosted a nationally syndicated weekly radio program on finance and investments. In his spare time, he is very active in his community and currently serves on the Board of Impact Broward, a Broward County 501(c)(3) dedicated to enriching the lives of children and seniors through volunteerism. When not active in charity, he enjoys golfing with his friends, reading, cooking, red wine, and travel. He resides with his wife, Michelle, in Fort Lauderdale.

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Copyright © 2017 Peter Weitz.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

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ISBN: 978-1-5043-7071-4 (sc)

ISBN: 978-1-5043-7072-1 (e)

Balboa Press rev. date: 04/12/2018

Contents

Prologue

Chapter One: YOU are a Fiduciary

Chapter Two: Why Hiring Your Friend, Relative or Neighbor as your 401(k) Advisor is a Bad Idea

Chapter Three: The 10 Best Practices in Plan Design That Will Attract and Retain Your Top Talent

Chapter Four: Selecting a 401(k) Provider is No Different than Selecting a Hotel

Chapter Five: Enroll. Participate. Save. The 3 Keys to Maximizing Your Employee’s Retirement Readiness

Chapter Six: How to Effectively Minimize Your 401(k) Administrative Work Load

Chapter Seven: Breaking Down the Four Components of Cost

Chapter Eight: Cheaper Is Not Always Better: Active versus Passive Management

Chapter Nine: Ongoing Employee Engagement: How to Better Serve Your Participants

Chapter Ten: The Theory of Behavioral Finance – 5 Ways to Break Investment Regret

Epilogue

End Notes

About the Author

Disclaimer

This book has been written by Peter Weitz. This book is for information and illustrative purposes only and does not purport to show actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any individual security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event, any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results like those discussed, if any. No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Peter Weitz, other than to your employees. This book is provided with the understanding that with respect to the material provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. Peter Weitz does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, or any related services. You may not rely on the statements contained herein. Peter Weitz shall not have any liability for any damages of any kind whatsoever relating to this material. You should consult your advisors with respect to these areas. By reading this material, you acknowledge, understand and accept the foregoing.

Prologue

As the Chief Executive Officer of a money management firm that oversees and is responsible for hundreds of millions of dollars in public and private funds, I am generally well-versed in what my fiduciary, regulatory and statutory obligations are - if anyone should understand the nitty gritty of the investment world, it should be someone like me. However, it took a fortuitous meeting with Peter Weitz to wake me up and make me realize 401(k) plans were a different beast and well beyond my experience. After five minutes with Peter I quickly realized we needed specialized help. I didn’t even know we had or needed an advisor on our 401(k) plan, but after meeting Peter the need was instantly obvious.

This is a competitive world, and we work in a competitive industry, so keeping employees happy should be at the forefront of every manager’s plan. Having a properly designed 401(k) plan is an important addition to a competitive employee benefit package. And if you are like us, with highly specialized 401(k) plan needs, deferred compensation plans, and specific high level compensation and benefit needs, plan specialists like Peter are as important to our business as a good portfolio manager is to managing a mutual fund.

This book will highlight the issues that I was not aware of until I met Peter, and should give you a solid base of understanding as to what your requirements are as a fiduciary. Even though I know Peter personally and he is a valued consultant to my organization, I look forward to learning more about his processes and being able to use this book for reference in the future.

Peter DeCaprio

Chief Executive Officer

Crow Point Partners

25 Recreation Park Drive, Suite 110

Hingham, MA 02043

Mutual Fund investing involves risk including loss of principal. An investor should consider each Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other information about the Crow Point Hedged Global Equity Income Fund and the EAS Crow Point Alternatives Fund is contained in each Fund’s prospectus, which can be obtained by calling 1-855-754-7940 and 1-877-327-0757, respectively. Please read the prospectuses carefully before investing. The Funds are distributed by Northern Lights Distributors, LLC, member FINRA. Crow Point Partners, LLC and Northern Lights Distributors, LLC are not affiliated.

Chapter One

YOU are a Fiduciary

Since you have