What is a IFA Retirement Plan?

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1 Retirement Plan Solution 401k Guided Simple Transparent Guided Simple Transparent

2 IFA Retirement Plan Solution Bringing best practices to small and mid-sized company retirement plans. Our focus is on protecting fiduciaries, creating high value at a reasonable cost, and ultimately getting your employees to a comfortable retirement. 1

3 A Plan Geared to Fit Your Needs We combine a broadly diversified investment lineup with the education and one-on-one advice participants need to succeed as investors. Through our many recordkeeping and administration partners, IFA is able to find the pieces that work for you. And no matter how your plan works, IFA has the proficiency to reduce plan fiduciary risks at a reasonable cost. Investments Participant Advice Fiduciary Protection Best Fit Service Providers 2

4 Investing Made Simple In every single time period and data point tested, low-cost funds beat high-cost funds. Russel Kinnel, Director of Mutual Fund Research, Morningstar, Inc 1 Fees Matter While we do not look at fees exclusively, the evidence is clear. That is why IFA s chosen investments are, on average, 70% less expensive than their Morningstar Category average. Average Fund Expense Ratio 2 As of 12/31/ % IFA Recommended Investments 1.36% Morningstar Category Average Individuals who cannot master their emotions are ill-suited to profit from the investment process. Benjamin Graham, The Father of Value Investing Average Equity Fund Investor vs. S&P 500 Index 3 30-Year Annualized Return (1/1/ /31/2013)...Investor Behavior Matters More 3.69% Average Equity Fund Investor 11.11% S&P 500 Index IFA believes that by allowing emotions to take control, equity fund investors reduced their returns by over 7.4% per year. According to Dalbar, Inc., an investor who had just bought and held the S&P 500 fared much better over the last 30 years than the average equity fund investor. 3

5 Conservative Moderate Aggressive Model Index Portfolios IFA removes the need to allocate across a dizzying list of mutual funds. It is our objective to present a selection of pre-allocated index portfolios which allow participants of any risk level to achieve global diversification with ease. IFA Index Portfolio % 20.0% 2.5% 9.0% 6.5% 50.0% One-on-One Advice Your employees will be able to sit down with an experienced advisor who can simplify the investment process, guide them to an appropriate portfolio, and review retirement readiness. Education IFA s dedicated and ongoing Web Television Series (IFA.tv) seeks to keep participants engaged, informed, and committed to the investment path. 4

6 Fiduciary Risk Reduction A business owner assumes a number of duties, along with personal liability, when overseeing a retirement plan. Fortunately, IFA provides each sponsor with prudent processes to assist with their fiduciary duties. And when it comes to investments, we take the extra step of accepting fiduciary liability for our selections. The Fiduciary Risk Pyramid below shows you how IFA may help you reduce your risk with a simple process. As you move down the risk pyramid, beginning with hiring a 3(38) investment manager 4 like IFA, you will not only protect yourself but may also end up with a quality plan for your employees. REDUCTION OF RISK REDUCTION OF RISK Determine plan objectives Review plan committee structure and requirements INVESTMENT RISK TRANSFER As an ERISA-defined 3(38) investment manager, IFA assumes the highest level of investment liability transfer available under the law: Selection and Monitoring of Investments Managing Model Index Portfolios Managing Qualified Default Investment Alternative (QDIA) EDUCATION AND PROCESS SUPPORT Group enrollment and investment education meetings Fee specific education Periodic benchmarking of fees and services to ensure competitiveness Support with contract negotiations Employee Education Service Provider Management Plan Governance Review participant education and communication Coordinate required disclosures Assistance with retirement readiness Service provider transition and/or conversion support Maintain a Fiduciary Audit File Establish an Investment Policy Statement (IPS) 5

7 Solutions Built for You Best Fit Service Providers Not every service provider is right for your plan. By helping us understand the services you desire, IFA is able to guide you to recordkeeping and administration partners with the right solutions for you. Bundled payroll and 401(k) provider A personalized plan for each participant Brokerage account add-on Dedicated relationship manager Maximize ownership contributions Defined benefit and cash balance plans IFA Retirement Plan Scorecard IFA RETIREMENT PLAN SCORECARD Your Score: Quick Overview Participant Fiduciary OVERALL Investments Advice Reponsiblity Administration A C C D C A robust tool built specifically for retirement plan sponsors looking for a quick, yet comprehensive analysis of their current plan. After completing a short survey, plan sponsors will receive an in-depth report showing areas of current strengths and weaknesses. Plus, IFA will provide you with possible solutions to improve your plan. 6

8 Call Index Fund Advisors to help set up a successful retirement experience. Toll Free: Simple investment menu with global asset class coverage Pre-built index portfolios for investors of all risk levels A focus on lower-cost investments Prudent investment selection process based on peer-reviewed academic research IFA.tv web-based educational program One-on-one advice from a professional investment advisor Full suite of tools to keep participants on track Fiduciary liability relief by hiring a 3(38) investment manager Best practices fiduciary program to protect trustees Management of other plan service providers Proactive third party administrator to keep your plan in compliance with dol and irs regulations Plan design consultation to meet your needs Quality on-demand reporting IFA401k.com 401k Guided Simple Transparent Von Karman Ave., Suite 150 Irvine, CA Toll Free: Local: Fax: About IFA Index Fund Advisors (IFA) is a fee-only independent financial advisor registered with the U.S. Securities and Exchange Commission (SEC) and is headquartered in Irvine, California with regional representatives located in Wisconsin, New Jersey and Texas. Founded in 19, IFA has approximately $2.2 billion in assets under management as of December 31, IFA provides investment advice to high net worth individuals, foundations, 401(k) plans, and endowments. References 1 How Expense Ratios and Star Ratings Predict Success, August 9, Data Period (March 2005 March 2010). Russel Kinnel, Director of Mutual Fund Research, Morningstar, Inc 2 Source: Morningstar Direct as of 12/31/2013. IFA Recommended Funds expense ratio calculated by using the average expense ratio of the following funds: DFUSX, DFLVX, DFSCX, DFSVX, DFGEX, DFIVX, DFISX, DISVX, DFEMX, DFEVX, DEMSX, DFIHX, DFGFX, DFFGX, and DFGBX. Morningstar Category Average expense ratio calculated by taking the average expense ratio for each Morningstar Category assigned to each IFA Recommended Fund. 3 Source: 2014 Quantitative Analysis of Investor Behavior (QAIB), Dalbar, Inc. QAIB 2014 examines real investor returns in equity, fixed income and asset allocation funds. The analysis covers the 30-year period ending December 31, 2013, encompassing both the drop at the turn of the millennium and the crash of 2008, plus the recovery periods of 2009 and Dalbar, Inc. is a financial services market research firm. Dalbar develops standards and measurement systems intended to improve the quality of products, service and compliance for the retirement, mutual fund, broker/dealer, discount brokerage, life insurance, healthcare and banking industries. 4 The Employee Retirement Income Security Act (ERISA) allows for plan fiduciaries to delegate their fiduciary responsibility for the selection and monitoring of plan investments to an investment manager under Section 3(38). This investment manager must acknowledge their responsibility in writing and must be a registered investment adviser, a bank, or an insurance company.