Traditional
Qualified Plans Web SiteRetirement planning has been a 'hot topic' for many years. Most of the focus has been on participant-Directed 401(k) plans; however, we can't ignore the fact that there are other types of plans available, namely traditional plans such as: defined benefit, money purchase and profit sharing plans. While most of our competition has concentrated on the 401(k) market, Nationwide Financial NetworkSM Retirement Services has also successfully provided investment solutions for these other very important retirement plans.
As a plan fiduciary, you are required to exercise a prudent man's standard of care in determining implementing and monitoring your qualified plan investments. As you direct the investments for your company's retirement plan, we can help ease your fiduciary concerns.
A number of essential features make our services ideal for your type of plan. They include:
§ Wide Range of Institutional Investment Options
§ The STAR Program
§ Investment Policy Statement Support
§ Periodic Performance Reports
§ Annual Plan Review
The STAR Program:
Financial markets are continually changing and investment options are growing exponentially. As a result, trustees and plan sponsors face the increasingly difficult challenge of creating productive, yet safe, investment strategies.
Responding to this challenge, we created the STAR Program for our traditional qualified plans. STAR is designed to help you make more informed investment decisions by providing you with:
§ Asset allocation models
§ Institutional, style-specific money management
§ Assistance with risk and return criteria
§ Consulting and oversight by Wilshire Asociates
§ Investment policy statement support
§ Quarterly rebalancing of assets to correct for market dynamics
§ Periodic performance reports
§ Benefit payments
§ Tax reporting
Nationwide Financial Network Retirement Services recognizes the challenges facing trustees and plan sponsors running trustee-directed pension plans. The impact of your investment decisions is felt not only by you, but also by your participants.
Improving your plan's rate of return can help reduce costs, increase benefits or both. However, each plan's asset mix must to be tailored to the specific needs of the Company's demographics. The single largest factor determining long-term performance is the mix of assets that make up an investment portfolio. As seen in the pie chart shown below, asset allocation will be one of the most important decisions you will make. The STAR program was created to help meet that need.
Source: Financial Analysts Journal, B.G.P. Brinson, B.D. Singer, G.L. Beebower, May-June 1991 |
STAR will help you:
1. Identify your plan's objectives
2. Determine the plan's risk and return criteria
3. Identify the key steps to an effective asset allocation strategy
4. Develop and implement a written investment policy statement
5. Monitor these objectives on an ongoing basis
6. Rebalance your portfolio quarterly to maintain your target asset mix
7. Conduct an annual performance review and implement necessary changes
8. Periodic and plan-level benefit distributions (inclusive of tax reporting services)
Through completion of a STAR quesstionnaire, Nationwide Financial Network is able provide model investment policy language and sample guidelines in order to implement the most appropriate program for your qualified plan. Sample portfolios, using the same institutional money managers found in large corporate plans, will be constructed to reflect the intentions outlined during the data gathering session. Once implemented, your portfolio will be automatically rebalanced each quarter to ensure a consistent underlying mix and better your chances of reaching long-term plan goals.
Annually, a review of plan performance to determine if expectations outlined in your investment policy are being met. At this time, changes in plan characteristics will be discussed and a new investment policy drafted (if necessary) with the plan's investment mix altered to reflect any identified changes.