Advice Models: Past, Present and Your Future'''

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Advantage 2005
Advice Models Past, Present and Your Future...
Trish Cox, Chief Operating Officer, Schwab
Retirement Plan Services Tim Cole, Vice
President, Invesmart, Inc. Grant Arends,
President, Alliance Benefit Group of Kansas John
Blossom, Jr., President, Alliance Benefit Group
of Illinois
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The Panel

• Trish Cox - Chief Operating Officer, Schwab
  Retirement Plan Services
• Tim Cole - Vice President, Invesmart, Inc.
• Grant Arends - President, Alliance Benefit Group
  of Kansas
• John Blossom, Jr. - President, Alliance Benefit
  Group of Illinois

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The Solutions

• Schwab Participant Advice Services
• RightPath Invesmart
• Alliance Benefit Group Advice Services

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Schwab Participant Advice Services

• Utilizes GuidedChoice
• Answers specifically
• How much to save
• How to invest
• How much monthly retirement income to expect
• No additional cost
• Choice of delivery
• In person
• Phone based appointments
• Online
• Unlimited access
• Completely integrated
• Managed Account option included

The GuidedChoice service and its investment
advice are formulated and provided by
GuidedChoice Asset Management, Inc.
(GuidedChoice). GuidedChoice is not affiliated
with, nor is it an employee or agent of Charles
Schwab Co., Inc. (CSCo.) or Schwab
Retirement Plan Services, Inc. (SPRS).
Participant access to the GuidedChoice service is
facilitated through SRPSs affiliate, CSCo.
Neither CSCo. nor SRPS supervises, makes
recommendations with respect to, or takes
responsibility for monitoring the advice provided
to participants by GuidedChoice. These entities
are affiliated of each other and are wholly owned
subsidiaries of The Charles Schwab
Corporation.     At no additional cost means
that there is no cost for this service outside of
the standard fees paid to Schwab Retirement Plan
Services, Inc. ( SRPS) and Charles Schwab
Co., Inc. (CS Co) for recordkeeping and
related services, including trustee and custodial
fees paid to The Charles Schwab Trust Company.
These entities are affiliates of each other and
are wholly owned subsidiaries of The Charles
Schwab Corporation. (0805-6674)
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How It Works

• Plan Sponsors elect advice service and sign
  service agreement
• Integrated into education and communication
  strategies
• Employee initiates consultation
• Incorporates personal data, current asset
  balances, and future case inflows and outflows
• Assesses risk tolerance and cash flow needs
• Asset allocation and fund-specific retirement
  account recommendations provided by GuidedChoice
• Savings and investment instructions automatically
  implemented
• Annual automatic rebalance with pre-notification
• Professional ongoing management of the advice
  portfolios

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The Results

• 311 plans signed, 261 plans live
• 100 increase in savings rates overall
• additional 6.76 of compensation
• Adoption by channel
• In person 75
• Phone 52
• Online 18
• 83 in managed accounts

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The RightPath for Participants
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The RightPath Difference
Personalized Gap Analysis

• We Do Our Homework
• Personalized for Each Participant
• Education Done Right
• Participants Pick a Path
• We Implement - Not Just Suggest
• Range of Diversified Portfolios
• Pro-Active
• Ongoing Management Communication

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Alliance Benefit Group Advice Services

• ABG of MN KC elected to partner with an
  independent advice Provider to Offer
  Discretionary Managed Accounts
• Issues to Consider in Selecting a Partner
• Tactical vs. Strategic vs. Dynamic Advice Partner
  
• Fees structures for the different advice models
• Fee collection for participants electing to
  implement the service
• System integration for transaction processing
• Short term redemption fee or round trip Issues
• How is the service delivered (web, in person,
  etc.)
• Fiduciary Liability for
• The Plan Sponsor
• The Advice Provider
• TPA
• Investment Advisor

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ABG-MN Initial Partner 401(k) Toolbox

• Hands off strategic advice using models
  provided at no cost.
• Manage It For Me Tactically Managed
  Discretionary Account for an asset based fee.
• Free Tactical Research for Do-It-Yourself
  Tactical Investors

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Beta ABGKC 401(k) Toolbox Results

• Presented to approximately 25 clients
• 12 Clients have implemented
• 65 of participants elected to sign up for a
  strategic model at no cost
• 20 of participants signed up for a tactically
  managed discretionary account.

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ABGILL - Targeted Solutions

• I. (lt 50K) Risk Based Asset Allocation Models
• Four Model Portfolios
• Enrollment Form Options
• Education Driven
• No Added Fee
• Auto Rebalancing
• 80 of Plan Participants
• II. (gt50K) Private Wealth Management Mutual
  Fund Solution
• Professionally Managed, Diversified Solutions
• Seven Portfolios
• X Plus Inflation Y of SP Volatility
• Questionnaire Driven Selection Process Proposal
• PCRA Custody
• Individualized Reporting Options
• Web and Personal Report Delivery

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ABGILL - Marketing Program

• Enrollment Meetings/Books
• One on One Reviews
• Individual Attention
• Roll-Ins
• Targeted Newsletters
• Golden Strategies
• InvestmentWISE
• CSR Education
• Investment Policy Reviews

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RESULTS

• New Business
• Retained Business
• Increased Fees
• Participant Control
• ROLL ON

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The Future of Advice

• Where do we go from here?