401K STORE
Together we grow your future!
Our focus is on you: Why we created the 401K store.
You are an individual and should be treated as one. Many of our clients have stated that when they ask their plan representatives to help them pick their investment choices, they are told: “They can explain the plan, generic information & asset allocation, but cannot tell them which funds to choose.”
Your employer selects the plan and investment options for all employees.
You must choose the specific investment!
We use the options given to all employees, to select specific
investment
options for you as an individual employee. We can manage your retirement account
now, before you leave your job or retire. By then too much time may have passed to get the most out of your plan! Studies¹⁻² have shown, those who sought help with their plan can earn 3 percent more on their investments (net of advisors' fee).
For example: By investing $500 per month for 30 years, the difference between earning an average of 7 percent vs 4 percent is $284,920 more (net of advisors’ fee). If you were investing $1,500 per month it would be $854,760 more.
This is a hypothetical example and is not intended to predict or anticipate the performance of any specific investment.
Actual outcomes may differ materially from the expressed projections.
Is that worth an hour of your time per year?
Quarterly Rebalancing Process
As an experienced investment advisor, there are many research tools available. What
differentiates
us from some other advisors, who only give investment advice occasionally, is how we
implement
our strategy with you
each quarter.
Identifying Trends
We use a research firm that ranks the investment options in your 401(k), 403(b), or 457 plans. Then we recommend reallocating the portfolio to those investment options that are in positive favors each quarter.
Regular Review of Your Portfolio
This strategy is designed to help avoid the bear market (major loss) like 2008 or 2000-2003. Based on the research, if the market is moving to the bear territory, we recommend moving to cash or bonds (if the bonds are in favor at that time). No research can predict a crash immediately or foresee market corrections, as corrections happen more frequently. It does have the potential to foresee the drift toward the bear market.
Advising you on your Existing Company's Plan
There are two ways to do this:
- Some plan providers allow us to rebalance each quarter with your agreement.
- For the provider that does not allow us to rebalance for you, we will email you the investment choices (with instructions) each quarter. For most of our clients it takes less than 15 minutes a quarter to make the reallocation. That is less than one hour a year!
Limit Surprises
We listen and ask questions. We want to know you as an individual to best help you achieve your goals. We want to get to know you, your family, what is most important to you, your hesitations, and your concerns. Everyone is different with unique situations and aspirations. The more we know about you, combined with my background as a CPA and financial advisor, helps limit surprises. We look at each person’s options from both a tax and investment point of view. “Investing with an eye on taxes!” We are available to meet with you in person or over phone as many times during the year as necessary to provide you with the service you desire. Why? The more we communicate the less surprises along life’s winding road. Our initial appointment is complimentary. We charge a fee based on the value of the account.
We help make wealth management easy — and your goals attainable.
- We specialize in helping plan participants select the right funds available in their company's specific plan.
- Rebalance your plan for you (if available) on a quarterly basis.
- Send you specific instructions by email (if we cannot rebalance for you) so you can rebalance quarterly.
- Charge fee based on value of the account.
- Help get the most out of your plan to achieve your goals.
If you are making these selections on your own and would rather get professional advice, perhaps we could be of assistance. Call us at 816-455-9100 or email me at john@vip401k.net.
Who can we help?
- People with worries about the next market crash like in 2008?
- People who have not changed or reallocated their 401(k), 403(b) or 457(b) plans in the past year or years?
- When asking the plan representative how to invest their contributions, the representative's response is, “Well, I can explain the plan, the options, asset allocations, but I cannot advise you which funds to pick & invest in?” Or maybe they say, “Visit our website and use many tools we have available for you to determine what to do!”
- Their current advisor says they are managing the 401(k) plan; but the only time it seems changes are made, is when you ask, and then that is based on a PIE chart, or they say, “Well, I like these funds for now, let's see what happens?
- People investing in the “Target Date Funds,” “Life Cycle Funds,” “Aged Based Funds,” “Risk Based Funds,” or “Asset Allocation Funds” at the plans? If one or more of the above is the case, then contact us at 401K Store (a division of Virtual Investment Planning). We can manage your account now, not when you leave your job or retire, by then too much time may have passed to get the most out of your plan!
¹ According to Vanguard’s study based on their Alpha framework. Putting a value on your value: Quantifying Vanguard Advisor’s Alpha, Vanguard Research, 2014.
² Also, according to the study of eight large 401(k) plans with more than 425,000 participants and $25 billion in assets, by Aon Hewitt, a consulting firm, and Financial Engines, an investment advisory firm, between 2006-2010.
