Empowered Retirement. 401(k) Solution from FFEC

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1 Empowered Retirement 401(k) Solution from FFEC

2 Retirement planning done right. For employers The First Financial Equity Corporation (FFEC) 401(k) Solution was built to be an attractive and competitive option in helping team members plan for retirement. Benefits include: Low Cost The FFEC 401(k) Solution uses economies of scale with its plan pricing by aggregating the responsibilities of all service providers. Additionally, the plan s investment choices are required to price their respective mutual funds or managed models at the lowest cost available with no revenue sharing allowed. Reduced Liability Employers who choose the FFEC 401(k) Solution are no longer designated as the Plan Administrator, Trustee or Named Fiduciary as defined by Employee Retirement Income Security Act (ERISA) law. Most fiduciary liability is transferred to Fiduciary Doctors who replace the employer in these roles. 1 Additionally, the plan is reviewed annually by an independent ERISA fiduciary to ensure that parties servicing the plan are in compliance with appropriate regulations and are acting in the best interest of participants. Choice Employers are able to choose from a menu of investment options, as recommended by a Financial Advisor. Options include best-in-class mutual funds and top rated portfolio managers, as rated by Morningstar and Lipper for 2012, giving participants the choice of investing either for a particular retirement target date or based on their individual risk tolerance. Participants can also seek the advice of their Financial Advisor on how to best invest their retirement funds. Flexibility Employers can customize the plan design to accommodate their preferences for eligibility, vesting, and matching for their specific needs. For employees For participants, the FFEC 401(k) Solution has all the expected amenities: online access, a toll-free contact number, quarterly statements via or regular mail, access to investment education, and a licensed Financial Advisor all while providing a transparent structure with institutional investment strategies to help in planning for their retirement. Personalized Reporting Tools Whether online or with today s newest mobile devices, FFEC 401(k) Solution participants can view and manage their account with a variety of online tools to simplify their investment experience. With personalized rate-of-return reporting to historical performance reporting, participants will stay current with an ever changing landscape of investment information. Personalized rate-of-return report example: Historical performance reporting example: Expanded Access Participants have easy account access from any web browser or through mobile devices. Participants can login into their accounts at com or download an app for their mobile device from the Apple Store or Android Market.

3 Retirement planning made simple. Retirement plans for small business employers with big goals The FFEC 401(k) Solution is a fee-only qualified 401(k) retirement plan allowing unrelated employers to adopt into a retirement plan managed by entities that bear the majority of fiduciary responsibility under Department of Labor (DOL) ERISA regulations 2. The FFEC 401(k) Solution is a fullyintegrated, yet customizable turnkey retirement plan designed to minimize employer fiduciary liability and reduce the plan s costs. In this structure, the majority of fiduciary liability is transferred to Fiduciary Doctors, acting as the Plan Administrator, Trustee and Named Fiduciary 1. Additionally, the FFEC 401(k) Solution uses a transparent open architecture investment platform offering a combination of mutual funds, collective investment funds and ETFs with no revenue sharing allowed. ERISA 408(b)(2) Requirements for Employers 3 The DOL issued new rules and regulations in 2012 pertaining to fees and expenses called ERISA 408(b)(2). Employers are now required to ensure that all fees and expenses within their retirement plan are reasonable. ERISA 404(c) Requirements for Employers 4 A poorly understood provision under the DOL s code for retirement plans is ERISA 404(c), which allows employers to shift liability of investment decisions and performance to the participants. Under these rules, employers must follow the DOL s specific criteria and any missteps mean they could be vulnerable if a participant experiences financial losses. For instance, employers must specify in writing to participants that they intend to comply with ERISA 404(c). Failure to make this annual disclosure means the employer could be held responsible for participants losses. That s where the FFEC 401(k) Solution provides great value by helping employers fulfill their 404(c) requirements under ERISA. Key parties The FFEC 401(k) Solution is a fully-integrated retirement plan platform with each of the following parties performing the following duties. FIDUCIARY DOCTORS Plan Administrator, Trustee & Fiduciary TPA & RECORDKEEPER Maintains records, website, statements and testing FINANCIAL ADVISOR Manages the relationship with the adopting employer ADOPTING EMPLOYER Retains plan sponsor role CUSTODIAN Holds the assets and processes all transactions PORTFOLIO STRATEGIST Several ERISA 3(38) managers are available

4 Meet the key parties. First Financial Equity Corporation 408(g) Fiduciary Advisor / Financial Advisor Founded in 1985, First Financial Equity Corporation (FFEC) is a privately owned, full service advisory and brokerage firm. FFEC employs a diverse and experienced staff that works closely with employers, participants and clients alike to serve in an advisory role regarding their company retirement plans, estate and financial planning needs. Mid Atlantic Trust Company Custodian Mid Atlantic Trust Company acts as the custodian for retirement assets in the FFEC 401(k) Solution. Their parent company, Mid Atlantic Capital Group, is a financial services organization that services over $40 billion in customer assets including approximately 40,000 corporate retirement plans as of December 31, Fiduciary Doctors, LLC Independent Fiduciary Fiduciary Doctors, LLC is a full scope ERISA 3(21) fiduciary located in Gilbert, AZ. Fiduciary Doctors is devoted to a complete fiduciary centric approach to the efficiency and quality of ERISA retirement plans for the plan participants, plan beneficiaries, the plan sponsor, the plan fiduciaries, and the service providers. FutureBenefits of America Third Party Administrator & Record Keeper From plan installation, to ongoing administration, FutureBenefits of America provides a straightforward experience helping employers meet their ERISA fiduciary obligations with their corporate retirement plans. Vanguard Since its beginning in 1975, Vanguard has grown to become one of the world s largest investment management companies, with more than $1.94 trillion in U.S. fund assets as of September 30, Headquartered in Valley Forge, Pennsylvania, Vanguard provides an extensive array of investment products, including a full range of low-cost ETFs and mutual funds and services to individual investors, institutions, employer-sponsored retirement plans, and financial professionals. Most investment firms are either publicly traded or privately owned. Vanguard is different: They are owned by the Vanguard funds, which are owned by their clients. FUND NAME TICKET EXPENSE RATIO* LifeStrategy Growth Fund VASGX 0.17% LifeStrategy Moderate Growth Fund VSMGX 0.16% LifeStrategy Conservative Growth Fund VSCGX 0.15% LifeStrategy Income Fund VASIX 0.13% Investors should carefully consider investment objectives, risks, charges, and expenses prior to investing. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained online or from your financial professional. These disclosures should be read carefully before investing. * Expense ratio is as of 12/31/12 and may change without notice.

5 ERISA 3(38) Managers FFEC offers all participants in the FFEC 401(k) Solution professionally managed asset allocation portfolios. These portfolios are created by money managers who construct their models with various degrees of diversification and risk levels so that the participant can select an investment that best matches their own unique risk and time horizons. These are not target date or generic asset allocation funds. They are actively managed and rebalanced to maintain their stated Investment Policy objectives. Efficient Market Advisors, LLC Efficient Market Advisors, LLC manages the Efficient Market Portfolios account and seeks to maximize investment performance given the investor s time horizon and willingness to accept risk. The Efficient Market Portfolios are offered exclusively through qualified financial advisors and Efficient Market Advisors, LLC. EMA s investment philosophy emphasizes top down, macroeconomic research in creating an active asset allocation strategy. This strategy is implemented through fifteen unique time- and risk-based portfolios. Efficient Market Advisors, LLC has $200 million in assets under control as of December 31, FUND NAME EXPENSE RATIO * Taking Income - Conservative 0.50% 2 5 Year Conservative 0.50% 6 10 Year Conservative 0.50% 6 10 Year Moderate 0.50% Year Moderate 0.50% 20+ Year Moderate 0.50% 20+ Year Aggressive 0.50% Good Harbor Financial, Inc. Good Harbor Financial, Inc. operates as the Registered Investment Advisor subsidiary of Cedar Capital Advisors, LLC. Good Harbor s philosophy is that disciplined, model-driven investment approaches generate enhanced risk-adjusted returns. An investment strategy expressed in model form should be researched, back-tested, and verified. This provides a rich data set for return and risk management analysis. Good Harbor Financial, LLC currently has over $1.5 billion in assets under control as of December 31, FUND NAME EXPENSE RATIO * US Tactical Core 0.80% PGR Solutions, LLC PGR Solutions, LLC was founded in 2002 to provide advisory and investment management services to thousands of accounts for individuals, trusts, and retirement plans. They believe that, over time, markets are the most efficient way of determining fair pricing for securities, not stock selection or market timing. PGR Solutions, LLC has $300 million in assets under control as of December 31, FUND NAME EXPENSE RATIO * Global Fixed Income Model % Global Conservative Model % Global Moderate Model % Global Balanced Model % Global Aggressive Model % Global All Equity Model %

6 Converting to the FFEC 401(k) Solution How does the FFEC 401(k) Solution work? For employers, converting their company s existing 401(k) plan into the FFEC 401(k) Solution is a simple, straightforward process that understands the DOL s regulations and requirements for ERISA compliance. Employers work closely with their Financial Advisor and the Third Party Administrator (TPA), FutureBenefits, to initiate the transfer and complete within a reasonable period of time (usually business days). For questions and more details on the transfer process, please contact your Financial Advisor. References 1. For more information on what fiduciary responsibilities can and cannot be delegated go to the DOL s Advisory Opinion A at ebsa/regs/aos/ao a.html 2. For more information on the DOL s requirements for employers and understanding their fiduciary responsibilities under ERISA go to publications/fiduciaryresponsibility.html 3. For more information on the DOL s expectations for employers pertaining to ERISA 408(b)2 go to 4. For more information on employers responsibilities under ERISA 404(c) go to Disclaimer First Financial Equity Corporation (FFEC) is not responsible for the marketability or price performance of any security. The information contained in this brochure has been obtained from sources which we believe to be reliable, but we do not guarantee its accuracy or completeness. The opinions expressed reflect the judgment of the author at this date and are subject to change without notice. FFEC and its officers, employees, affiliates and members of their families may make investments in any company or security mentioned before, after, or concurrently with the publication of this report. First Financial Equity Corporation does not offer any tax advice. Securities and investment advisory services are offered through FFEC. First Financial Equity Corporation is a member of FINRA, SIPC. integrity knowledge innovation trust empowered investing

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