Index Fund Advisors Retirement Plan Solutions...Work with an ERISA 3(38) fiduciary— this provides...

IFA | Retirement Plan Solutions 1

Retirement Plan SolutionsIndex Fund Advisors

TRANSPARENTSIMPLEGuIdEd

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GUIDED. SIMPLE. TRANSPARENT.


Retirement Solutions Built for You

Index Fund Advisors, Inc. (IFA) is a fee-only investment advisory and wealth management firm

that provides risk-appropriate, globally diversified wealth services to individuals and institutions

with a fiduciary standard of care.

IFA designs customized 401(k), 403(b) and Defined Benefit retirement plan solutions for

small and mid-size companies that are constructed to support the specific needs and

objectives of owners/plan sponsors - while helping employees define a clear path for a

successful financial future.

IFA’s experienced team of professionals are your central point of contact and strategically

work with you and industry leading service providers to develop a successful retirement plan.

Our guided, simple and transparent solutions are designed to:

• Create high-value at a reasonable cost

• Relieve administrative burden

• Transfer investment selection fiduciary liability

• Provide appropriate, streamlined investment options

• Achieve maximum plan participation

• Help your employees to and through a comfortable retirement

IFA Quick Facts

• Registered Investment Adviser

• Founded 1999

• Headquartered in Irvine, CA

• $2.6 Billion AUM

• 2,000+ clients

As of 12/31/2014

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Plan SponsorsIFA is dedicated to providing a comprehensive retirement plan solution that meets the needs of your organization and its employees. The customized Plan Sponsor services are designed to guide you, alleviate the administrative burden and provide ongoing support, monitoring, governance and communication to help ensure plan success.

GU

IDED


Dedicated Relationship ManagerAn IFA Wealth Advisor is committed to the highest standard of care for you, your organization and your plan

participants. As your central point of contact, IFA acts as your quarterback to ensure all moving pieces and

involved parties are aligned.

Your service provider selection process should

be diligent and personalized to the organization’s

needs. Not every service provider is right for

your plan. IFA is able to guide you to the “best-fit”

service partners, as well as assist in the contract

negotiations, transition process and/or conversion

support and benchmarking of fees and services.

Service Provider Management An IFA retirement plan brings together the flexibility

of unbundled retirement service providers with

leadership that delivers the convenience found in a

bundled plan. IFA’s “Unbundled Bundled” approach

provides unbiased, industry-leading providers and

competitive pricing. These industry-leading partners

are selected and monitored for their outstanding

service capabilities, competitive costs and shared

commitment to excellence for both plan sponsors

and plan participants.

Payroll Provider

Trustee/Custodian

Third-Party Administrator

Recordkeeper

Consultants

Investment Fund Manager

Plan Sponsor

Service Providers

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Investment Selection & MonitoringIFA provides a prudent investment selection process coupled with a disciplined approach to long-term

performance creating a powerful retirement investment platform that suits the needs of any investor

through the following portfolio options:

IFA Index PortfoliosIFA’s highly regarded Index Portfolios are globally

diversified across 44 countries and over 13,000

companies, and, built in accordance with Nobel Prize

winning research and evidence-based analysis of

historic stock market data.

IFA’s asset allocation models are designed to capture

Risk-Based Index Portfolios

Target date Index Portfolios

Build Your OwnIndex Portfolio

the six dimensions of risk exposures that have shown

to reward investors over very long periods of time and

match them with their individual risk capacity. This

process facilitates investor-specific risk and return and

mitigates the fiduciary burden of plan sponsors.

For more information on IFA Index Portfolios, visit

www.ifa.com/portfolios

IFA Index Portfolio Asset AllocationsStock Indexes Bond Indexes

IFA Index Portfolios Higher RiskLower Risk

50

50

40

60

30

70

20

80

10

90

60

40 70

30 80

20 90

10 100

% %


Investment ReportingA primary element of fulfilling the fiduciary

duty of the advisor is to provide a robust

and straightforward investment monitoring

program. IFA’s Quarterly Performance

Monitoring report provides fund performance

data for the investments in the plan as well as

performance of relevant benchmarks.

Plan GovernanceAs your investment advisor, IFA will ensure

that all tasks are completed compliantly and

with the greatest efficiency. From determining

plan objectives, structure, requirements and

disclosures to establishing the investment

policy statement, fiduciary best practices and

participant communications – we’ve got it

covered.

Plan Communications & ParticipationIFA provides a full-suite of tools and resources to

help support the process, set standards, ensure

compliance and achieve maximum participation:

Plan Governance Tool Kit

Enrollment Kit

Retirement Analyzer Survey

dedicated 401(k) Participant Website

Quarterly Reporting

Marketing Communications

Retirement Scorecard

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Plan ParticipantsIFA is dedicated to providing easy-to-understand and efficient retirement plan investment solutions that assist employees in securing their long-term financial success. The personalized Plan Participant services are designed to advise and educate employees on the importance of saving for retirement as well as provide intuitive tools and materials to educate and assist them on their road to retirement.

SIM

PLE


Investing for Retirement Made SimpleIFA’s Index Portfolios take the complexity out of selecting retirement investments. Ten pre-created

asset allocations are provided for investors ranging from very conservative to very aggressive –

improving participant confidence, engagement and overall plan satisfaction.

Quick Guide to IFA Index Portfolio Selection

Invest & RelaxWith the complexity of investing for retirement

removed and the construction of a prudent

retirement plan solution that delivers optimal

returns, plan participants are able to invest and relax

and focus on more important aspects of their lives.

Only High Risk Investors

Age 20 to 29

Age 30 to 39

Age 40 to 49

Age 50 to 59

Age 60 to 69

Age 70 to 79

Only Low Risk Investors



Age Profile Risk Profile

Most Aggressive

Aggressive

Aggressive

Moderately Aggressive

Moderately Aggressive

Moderate

Moderately Conservative

Moderately Conservative

Conservative

Risk Averse

Index Portfolio

IFA Index Portfolio 100










100% / 0%

90% / 10%

80% / 20%

70% / 30%

60% / 40%

50% / 50%

40% / 60%

30% / 70%

20% / 80%

10% / 90%

Stock / Bond

Proper Asset AllocationAsset allocation is one of the most important

determinants of investor success. Renowned

investing expert Roger Ibbotson identified that

more than 100% of variability of a fund’s investment

return is due to asset allocation1. Participants who

have the opportunity to receive professional advice

regarding appropriate asset allocation and ten

risk-calibrated index portfolios may significantly

improve their odds of investing success.

1 http://corporate.morningstar.com/US/documents/MethodologyDocuments/researchpapers/importanceofassetallocation.pdf

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Easy Enrollment Standardized and customized enrollment kits,

group enrollment and investment education

meetings allow for a streamlined and efficient

enrollment process.

One-On-One Advice Your employees will be able to meet with an

experienced IFA Wealth Advisor who can guide

them through the investment process, including

appropriate portfolio selection, emotions

management and subsequent retirement

readiness reviews.

Investor BehaviorEmotional reactions to financial upheavals are real.

Consequently, IFA listens to plan participant fears

and seeks out the issues driving those feelings to

provide practical answers to help avoid what

could potentially be a costly mistake.

Ongoing Investor EducationIFA is dedicated to educating your employees

on the benefits of saving for retirement. IFA

provides many different educational outlets of

investment information to support investors on

their journey including:

• dedicated Plan Participant Website

• Articles

• Videos

• Charts

• Academic Resources

• Financial Books

• And, much more at www.ifa.com


1,243 2,611,787 views of the latest index funds information and newsARTICLES

353IFA.TV VIDEOS

1,024 YouTube subscribers and

494,265 views of the IFA Investment

Education Destination Channel

322ACADEMIC RESOURCES

1,574CHARTS497 of which are in

the IFA.com chart index

308QUOTESInvestment related quotes

2,259Financial Books

in the IFA Library Our extensive library of investment,

economics and business books

Connecting with

8,300 Facebook

2,010 Twitter

513 LinkedIn

FOLLOWERS

12 STEPSIFA’s 12-step

recovery program for active investors

IFA INDEX PORTFOLIOS Globally diversified index portfolios of

stocks and bonds with 8 implementations

100

Data As of December 31, 2014

IFA REPLACES SPECULATIONWITH AN EDUCATIONRESOURCES HELPING EMPLOYEES TO AND THROUGH RETIREMENT

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IFA REPLACES SPECULATIONWITH AN EDUCATIONRESOURCES HELPIN

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A Clear PathIFA is dedicated to complete plan transparency and an unobscured view of all fees and expenses. Trust is an important relationship component and as your fiduciary partner we are required to act only in the best interest of our clients.

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Fiduciary PartnerA business owner assumes a number of duties, along with personal liability, when overseeing a retirement

plan. Fortunately, IFA acts as a 3(38) investment fiduciary, accepting liability and responsibility for the selection,

monitoring and replacement of passively managed index funds.

Average Plan Cost as Percentage of AssetsExample of 50 Participants and $2,500,000 in Assets

Source: 401k Averages Book, 14th Edition, Chart 3.2

* As of December 31, 2014. Total cost include

investment, recordkeeping, administration and trustee

expenses.

Fees MatterHidden fees in other 401(k) plans can make it

extremely challenging to identify the actual fees

paid for services.

Conversely, IFA’s retirement plan solutions

are offered on a fee-only basis with no hidden

compensation or commissions, no revenue sharing

and fees are agreed upon and clearly spelled out in

our agreement.

IFA also provides institutional share class mutual

funds not typically available to the general public,

and on average, are less expensive than industry

averages.

All of this translates into savings that are passed on

to plan participants, which improves their chances of

meeting their retirement goals.

Total Plan Cost*

IFAIndustry Average

1.16%

1.44%

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Working TogetherIFA looks forward to working with your organization on establishing a retirement plan that meets your

specific needs. And, while every plan sponsor and organization is different, they share a common

goal of receiving high value and vital plan outcome for the fees paid.

1. Work with an ERISA 3(38) fiduciary— this provides plan sponsors/owners confidence that the advisor is acting in your best interest—not their own.

2. Exclude any revenue sharing funds from the plan— transparency helps you make sure that you get what you pay for.

3. Don’t work with an advisor who is affiliated with a fund or a fund family— self-dealing is just too easy for them.

4. Work with providers who disclose any conflicts of interest— this assures fair treatment.

5. Select funds based solely on what is in the best interest of the plan participants— risk-appropriate, passively managed funds with the goal to maintain low costs help participants get on the right track and stay there.

6. Offer your participants pre-allocated globally diversified index portfolios which encompass varying degrees of investment risk— the right portfolio for each participant.

7. Work with an advisor who is committed to servicing the plan and educating the participants— Selecting the asset allocation that best suits your participants is key to their success, along with making sure they understand the benefits of investing for the long term and avoiding

speculation.

7 IFA Tips to Administer a Prudent Plan


DisclosuresAs with any investment strategy, there is potential for profit as well as the possibility of loss. IFA does not guarantee any minimum level of investment performance or the success of any index portfolio or investment strategy. All investments involve risk and investment recommendations will not always be profitable. Please see www.ifabt.com for further disclosures.

“IFA’s mission is to change the way the world invests by replacing speculation with an education.”

- Mark Hebner, President, Index Fund Advisors, Inc.

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Index Fund Advisors Retirement Plan Solutions...Work with an ERISA 3(38) fiduciary— this provides...

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