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Securities Offered Through DaVinci Capital Management, Inc.

799 Cambridge St., Cambridge, MA 02141 
617-354-3222 I Member FINRASIPC
MSRB

Learn more about our firm and investment professionals at FINRA BrokerCheck

401k / Retirement

CONFIDENCE FOR

TODAY & TOMORROW

Plan design, education and fund

management that creates trust

and participation

 More Money, Less Taxing

 We’re here to improve the efficiency and performance of your plan for participants so they can achieve improved retirement outcomes.   

Plan Design

OPTIMIZING YOUR 401K

Optimizing your plan design is typically the first thing you should consider to better enable participants to save adequately for retirement while meeting company objectives. It is also one of the most direct avenues a plan sponsor can take to impact participants’ saving behavior.

 

The CIP Group provides initial assessments of company retirement plan goals and objectives, budget constraints and operational practices. We identify and recommend administrative features to optimize plan performance while reducing corporate fiduciary exposure, and facilitate employee participation through education. Our service helps sponsors:

  • Align employer contributions to the plan with company profitability

  • Maximize allowable contributions and benefits for owners and key executives

  • Keep fees reasonable and transparent to help account balances grow

  • Better incent employees to save for retirement

  • Recruit and retain top talent

  • Educate employees about retirement planning, investing, and other financial concepts

 
Fund Management

MAKING YOUR FUNDS MATTER

CIP can provide you with Plan Sponsor Investment Advisory services as Co-Fiduciary under ERISA 3(21) for fund selection & monitoring recommendations, and as Sole Fiduciary under ERISA 3(38) for our Risk Based Managed Portfolios.

Investment Analysis – ERISA 3(21)

CIP can help you navigate fiduciary responsibility and improve performance opportunities for participants through our systematic Investment Due Diligence Process. This process offers a prudent quantitative and qualitative investment analysis needed to select, monitor, and evaluate funds following a best practices process which includes:

INVESTMENT POLICY STATEMENT

We’ll help you produce a customized, ERISA-compliant investment policy statement that incorporates the fiduciary methodology of the Prudent Practices for Investment Fiduciaries.

 

INVESTMENT RESEARCH AND GUIDANCE

Our powerful investment due diligence capabilities enable us to conduct a comprehensive fiduciary-level review of your plan’s current lineup of mutual funds, ETFs, separate accounts, variable annuities, and insurance group separate accounts.

 

CUSTOMIZED REPORTING

We’ll produce a wide range of customized reports and documentation that can verify your compliance with ERISA’s fiduciary requirements. Those reports include fee and expense summaries and performance analytics for both asset allocation models and individual investments.

Risk Based Managed Portfolios – ERISA 3(38)

This approach allows participants the opportunity to choose, or be defaulted to Risk-Based Professionally Managed Portfolios which provides them with a managed diversification strategy based on their risk tolerance and time horizon for retirement. These portfolios are managed under ERISA 3(38), discharging the plan sponsor from the liability of the ongoing management of these portfolios.

Fee Benchmarking

Benchmarking plan fees and complying with the amended ERISA §408(b)(2) fee disclosure regulations helps plan sponsors take advantage of the protections and statutory exemption offered by ERISA §408(b)(2). It also reduces the likelihood and impact of a DOL “targeting hit.”

“We’ll guide you through the administrative, communication, and fiduciary systems to help your retirement plan and employees achieve their true potential.”    

—Robert McGowan, 401K Team Leader  

 
Fiduciary Support

REDUCING THE TIME AND STRESS OF COMPLIANCE

 While the laws governing retirement plans and their fiduciaries’ responsibilities are complex, complying with them doesn’t have to be stressful. It simply requires an awareness of the rules, a process for complying, and the use of quality advisors and service providers to help meet your responsibilities.

All defined contribution plan sponsors have specific fiduciary responsibilities as defined by ERISA. Any person or committee serving in the role must ensure that:

  • He or she is always acting in the best interests of the plan and its participants

  • The plan is managed in accordance with the plan document

  • ERISA notification and reporting requirements are being met

  • The plan offers an appropriately diversified mix of investment options

  • Investment options are evaluated, selected, and monitored in a prudent manner

  • Plan and investment costs are reasonable

  • Participants and beneficiaries have adequate information to make informed decisions about the management and investment of their retirement savings

CIP will help guide you through the process of managing these responsibilities as well as define and measure desired participant outcomes. We are also pleased to serve as fiduciary or co-fiduciary in the ongoing investment selection & monitoring process and help participants make informed decisions about their plan.

Fee Suitability
ERISA Guidelines
DOL Fiduciary Rule
Sponsor Protection
Education and Counseling
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PROVIDING THE MISSING INGREDIENT

Many employers believe participants don’t save more because they can’t afford it. Studies reveal, however, the primary cause for low savings rates to be a combination of confusion and fear when facing the investment process. That confusion directly affects the number of participants who invest, how long they choose to invest, as well as what types of investments are chosen.

RETIREMENT READINESS

Employers can be more instrumental in improving participant retirement savings outcomes by:
 

  • Optimizing plan design features

  • Offering low cost professionally managed Risk-Based Portfolios

  • Adopting Safe Harbor plan features designed to improve enrollment and contribution levels

  • Providing ongoing access to licensed financial counselors.

 

At CIP, we shift the conversation from a seemingly unattainable total balance at retirement to better equating current contribution and diversification levels to desired income replacement ratios at retirement. Having access to a licensed financial counselor provides significant improvements in participation, proper deferral amounts, and appropriate investment allocations.

 

Our education approach helps participants understand:
 

  • Their risk tolerance and how to diversify appropriately in 401(k)

  • When they would have the option of retiring

  • How investment strategy is aligned with family risk tolerance and retirement goals

  • How much potential income they can generate from their accounts in retirement

  • The impact of employer contributions to the plan and how it affects future projected income in retirement

  • The importance of creating a will, power of attorney, healthcare proxy and homestead

  • How to select which voluntary insurance options best meet their needs

  • How to establish an accessible emergency fund