Employers
Investment Advice for Retirement Plan Participants
Defined contribution retirement plans, such as 401(k), 403(b) and 457 plans, are now the leading source of employer-sponsored retirement benefits for American workers. These plans require millions of workers to make investment decisions that determine how their savings will grow and the type and amount of risk they are exposed to. However, despite many well-intended efforts to educate employees, studies have repeatedly shown that most are ill-equipped to make sound investment decisions. Of course, employee investment decisions have a direct bearing on the plan’s success in meeting the employer’s income replacement objectives. Poor investment decisions produce a poor return on the plan sponsor’s contributions.
LTSave offers the perfect solution: complete, outsourced retirement planning advice and account management services for plan participants. With LTSave, plan sponsors can offer employees a much-needed benefit: the services they need to take control of their retirement planning and make sound investment decisions.
LTSave uses a prudent and sophisticated investment processes to generate and deliver advice to your plan participants. Based on the principles of Modern Portfolio Theory, our investment process creates portfolios that are composed of multiple broad asset classes. We further refine the portfolio construction process by adjusting to reflect personal characteristics, such as the participant’s age, years to retirement, current account holdings and risk tolerance. We then use a powerful optimizer to make the final fund selections and determine the portion of a participant’s account to be allocated to each. Finally, we provide services to help participants implement our recommendations and to monitor and rebalance accounts as needed to keep their investments on track to meet their retirement goals.
LTSave also helps plan sponsors meet their fiduciary responsibility. Our process adheres to accepted principles of prudent portfolio management and uses objective criteria in recommending investments. As a completely independent advisor, we offer objective, non-conflicted advice. Our investment recommendations are computer-generated using a model that is designed to meet the requirements of an “eligible investment advice arrangement” under the Pension Protection Act of 2006.* LTSave also services as a fiduciary with respect to the investment recommendations we make.
* Final regulations have not been published on the PPA and our process has not yet been certified by an independent auditor.