The IRA Rollover Experts. Providing Comprehensive, Low Cost IRA Rollover Solutions to Help Meet Your Retirement Needs

Transcription

1 The IRA Rollover Experts Providing Comprehensive, Low Cost IRA Rollover Solutions to Help Meet Your Retirement Needs

2 The IRA Rollover Experts Today s complex financial environment demands not only a carefully structured investment strategy but also the ability to skillfully implement it in a cost effective manner. Exchange Bank s IRA Rollover program does just that. Over time, the way in which financial assets are allocated among various investment classes will determine the stability of your investment base; how much current income your assets will generate; and the pace at which your capital will grow. How assets are allocated is the single most important investment decision any investor must make. All you need is the plan, the road map, and the courage to stay the course. Frank Doyle, Exchange Bank Co-Founder 2

3 The IRA Rollover Experts: Options Now that you have terminated employment or retired, you have four options regarding your 401(k), profit sharing, or pension plan assets. Your options are: 1. Leave your retirement plan assets in your former employer s plan. 2. Transfer the assets to your new employer s plan. 3. Roll (or direct transfer*) the assets to an IRA. 4. Take a taxable distribution. * Once you take possession of your retirement plan assets, you have 60 days to rollover the funds into an IRA, or another qualified retirement plan, without incurring a taxable distribution. The safer and quicker alternative is a direct transfer from the plan s trustee into your IRA. This avoids the possibility of taking constructive receipt of your retirement plan funds. Throughout this presentation, the term rollover means both an indirect rollover and a direct transfer. 3

4 The IRA Rollover Experts: Option #1 - Pros and Cons 1. Leave your retirement plan assets in your former employer s plan. Pro: Your prior company may offer an appropriate menu of low cost, no load, no commission, institutionally priced mutual funds and pay for the plan s expenses. If this is the case, leaving your assets in the plan may be your best option. Con: Your prior company plan may be using an inappropriate menu of high cost, commission-based, retail priced mutual funds. In addition, the plan may be passing some or all administration costs to your account. Also, the plan may have restrictions on distributions that could limit access to your funds. If any of these issues exist, leaving your assets in the plan may be detrimental to your retirement success. 4

5 The IRA Rollover Experts: Option #2 - Pros and Cons 2. Transfer the assets to your new employer s plan. Pro: If you continue your working career with another employer, they may sponsor a retirement plan that allows you to transfer your assets from your prior company. If the new company s plan offers an appropriate menu of low cost, no load, no commission, institutionally priced mutual funds and pays for the plan s expenses, then moving your assets to the new plan may be your best option. Con: Your new company may not offer a retirement plan or may offer one that is inappropriate for your needs. Also, the new plan may have a waiting period, participation restrictions and distribution restrictions. 5

6 The IRA Rollover Experts: Option #3 - Pros and Cons 3. Roll the assets to an Individual Retirement Account. Pro: Rolling over your retirement assets to an IRA custodian that allows low cost, no commission, no load, institutionally priced mutual funds that provides objective, personalized advice as a fiduciary may be reasonable. Distribution options from an IRA are more flexible in meeting one s retirement income needs than distributions from company s plan. Con: Many IRAs are significantly more expensive than investors realize. The use of expensive annuities and high commission retail investment products is very common. Unlike company plans that MUST have a fiduciary that is charged with looking out for the participants best interests, IRA custodians are not required to be fiduciaries. 6

7 The IRA Experts: Asset Allocation How Your IRA Will Be Managed: Asset Allocation is the key to reducing risk and enhancing long-term returns. By combining a variety of investment categories which may react differently to ever-changing market conditions, and rebalancing the asset classes on a regular basis, more consistent returns are generated over time. We will allocate your assets among some or all the following investment classes depending on your capacity to take on risk and your retirement needs: Blue Chip U.S. and International Stocks Small Company U.S. and International Stocks Dividend Paying Stocks High Quality Fixed Income Securities High Yield Fixed Income Securities Special Diversifying Asset Classes* Money Market Securities *Depending on your needs, time horizon, and risk capacity, diversifying assets may include: adjustable rate bonds, inflation-protected securities, commodities, hedged equities, real estate investment trusts and other asset classes. 7

8 The IRA Experts: Our Fiduciary Advantage Exchange Bank s Trust and Investment Management Group offers fully managed IRA Trusts where we are an investment fiduciary. Our hallmarks are: Investment advice as a fiduciary the highest standard of investment ethics under the law. As a fiduciary, our sole duty of loyalty is to you and your beneficiaries and not to brokers, fund distributors, insurance/annuity companies, or investment companies. The use of low cost, no load, no commission, institutional mutual funds. Lowering the cost of investing increases net returns with no additional risk. Our trust and investment officers are salaried professionals with no conflicts of interest and hold the industry s highest trust and investment certifications. Our IRA specialists are knowledgeable with Required Minimum Distributions, beneficiary designations, Roth IRA conversions, early distributions, inherited IRAs, and other IRA-specific administration issues. 8

9 Why Use Exchange Bank s IRA Rollover Experts? Our IRA Rollover program provides many benefits to investors seeking a rational and cost-effective alternative to both investment and risk management. Among our many advantages, we provide: No conflicts of interest, no hidden fees, no rebates for pushing certain investments Access to a large universe of institutional funds, many of which are generally not available through brokers or to individual investors Disciplined risk management through the use of multiple asset classes and multiple investment styles Active rebalancing of portfolio allocations to manage risk and stay on track to meet your retirement income needs Freedom from market timing bets or gambling on a hot sector or investment fad No front-end loads, no bank-end/surrender fees, no transaction fees, no transfer-out fees Easy to read account statements Peace of mind through Exchange Bank s long heritage of trust and great client service

10 Our Unique Ownership Means a Commitment You can Trust As one of California s largest and oldest investment fiduciaries, we offer personalized services and support for those looking to rollover $250,000 or more. From helping you set up your IRA to selecting an investment objective, our expert staff will help you every step along the way. We will: Take care of all the paperwork Coordinate the transfer with your current financial institution Provide a dedicated salaried Investment Officer to assist you in developing your investment and retirement plan Invite you to attend our periodic investment and economic symposium series Assist you in understanding the pros and cons of all of your retirement plan options Provide clear and easy to understand account statements Review your estate plans and provide a broad spectrum on wealth management advice

11 Exchange Bank: One of a Kind, Second to None The Exchange Bank Advantage Our Approach to Wealth Management Typical Approach Strategic asset allocation Market Timing Achieve asset class returns Stock Picking Broad exposure to the markets Concentrations in stock or fund du jour Focus on risk/reward trade-off Focus on rate of return Goal oriented Product oriented Solution driven Sales driven Accept fiduciary responsibility Avoid responsibility Clear disclosure of costs and fees Costs and fees often hard to determine How do you separate what sounds good from what is good? Talk to us about the Exchange Bank Trust and Investment Management Advantage. 11

12 Experience from the PAST, relevant in the PRESENT, and TIMELESS in its values Founded in 1890, Exchange Bank has prospered through financial panics and booms to become a leading provider of financial services in the North Bay. With over $1 billion in investment assets under administration for clients and the Bank, we have never waivered in the face of industry consolidation or volatile markets. As we enter our thirteenth decade of service to investors, we continue to steadfastly pursue our time-tested investment strategies for the accumulation and preservation of wealth. What you have for the future depends in part on the financial partners you choose today 12

13 IRA Rollover Checklist Review your Options Review the investment options, distribution rules, and total costs of leaving your retirement assets in your company plan. If applicable, review the investment options, distribution rules, and total costs of moving your funds to your new employer s plan. Talk to the human resources department of your former employer to understand their paperwork and process requirements for requesting a rollover. Select an IRA Custodian Does the custodian offer fiduciary management services? Does the custodian have any conflicts of interest? Request a fee schedule detailing all costs and expenses, both billed and embedded. Can the custodian offer true no-load, no-commission investments? Is the IRA Custodian local or headquartered in a far-off state? Know what you are invested in. Know who you are invested with. Exchange Bank: Here you for since