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Crash Rating is a number used to measure the risk of a portfolio. It is a representation of the loss a portfolio may incur during our worst stress-testing scenarios. Here are 5 things that you need to know about the Crash Rating in Portfolio Crash Testing: 1. A portfolio’s crash rating can rank from 1 to 100, with 1 being the lowest in terms of risk and 100 being the highest. 2. A crash rating is calculated by taking the sum of the three largest losses that a portfolio incurs among all stress-testing scenarios. 3. The S&P 500 ranks at a 72 on our current Crash Rating scale: 4. Our Crash Rating...

Daniel Satchkov

24 Sep 2018

How to Become an Expert on 404c Safe Harbor For Your Plan Sponsor Clients

Do You Really Qualify For 404(c) Safe Harbor From Liability? Summary: Under ERISA plan sponsors or advisors who exercise discretionary authority are fiduciaries with significant liability in case of fiduciary duty violation. Section 404(c) provides safe harbor protection fiduciaries in case plan participants experience investment losses. How do you obtain that protection? We will focus on the Investment Menu Requirements section of the 404(c). Many plan sponsors are unaware of the fact that 404(c) expressly requires plan fiduciaries to consider underlying holdings of the funds that they offer. The analysis they do and tools that they use focus on fund’s return history without considering the underlying positions of the fund. We...

Daniel Satchkov

21 Sep 2018

5 Articles for your weekend reading list: September 22-23, 2018

Here are five suggested articles to read this weekend: 1. STOP Being a Monday Morning 401k Quarterback – It’s easy to walk into a prospect meeting, look at the 401k plan playback information, and talk about investments underperformance, plan design fumbles and retirement replacement ratio spreads. (401kspecialistmag.com) 2. Best Interest and Best Practices: Improving Retirement Outcomes – Advancements in technology have now made it possible to instantly and conveniently access online accounts to retrieve personal information, such as retirement plan savings data. (planpilot.com) 3. Competition For Talent And The Rising Shortage Of Next-Generation Financial Advisors – Being an effective financial advisor requires a substantial amount of training, education, and experience in various skill domains, resulting in career paths that...

Daniel Satchkov

20 Sep 2018

The ultimate tool for documenting every part of your best-interest practice

Here is why IRAFiduciaryOptimizer is the ultimate tool for documenting every part of your best-interest practice: Create a comprehensive best interest report that will analyze investment fees, plan fees, advisory fees, benchmarking, and more! Be Confident About Your Best Interest Reporting: The only software that went through a thorough review with top attorneys. Save Hours & Get Plan Data For Any ERISA Plan: We included ERISA plan fee and feature databases at no extra charge. Justify & Benchmark Your Fees: We included a database of 10,000+ advisors and their fees, so you can comply with fee reasonableness requirements and report validated benchmarks.

Daniel Satchkov

19 Sep 2018

5 Ways Larkspur-Rixtrema tools will help you become a better fiduciary

Here are a few quick facts on how Larkpur-Rixtrema tools will help you become a better fiduciary because: 1. Larkspur-RiXtrema tools will help you get a better understanding of the current 401(k) plan provided by the employer. 2. With the help of 401kFiduciaryOptimizer you’ll be able to get your plan diversified in the best possible way, so it won’t be losing money in case of the worst economic scenario. You will also be able to improve plan menu diversification by examining the diversification of your plan investments on a look-through basis as required by the 404(c) provision. 3. Portfolio Crash Testing will show you how risky the current retirement plan...