Legend Financial Advisors, Inc.^® (Legend) is a U.S. securities and exchange commission registered investment advisory firm that helps the 403(b) retirement plan sponsor and its investment committee oversee as well as coordinate the various facets of the 403(b) retirement plan process in addition to acting as a fiduciary investment advisor or a Fiduciary investment manager. Legend is a Fiduciary and offers its service on a fee-only¹ basis. It acts as either a Section 3(21) fiduciary investment advisor or a Section 3(38) fiduciary investment manager under the employee retirement income security act of 1974 (erisa), which minimizes the potential liabilities of a 403(b) retirement plan sponsor and its investment committee.

In either case, Legend works together with the 403(b) retirement plan’s administrator and follows the investment guidelines established by the 403(b) retirement plan’s investment policy statement (ips).  Its state-of-the-art services incorporate the newest laws concerning the investment management aspects of a 403(b) retirement plan.

Legend Is A Fiduciary:

Legend, as a Fiduciary, places the 403(b) retirement plan and the participants’ interests first, to ensure conflict-free services. Legend’s fees are always transparent.  All custodial fees charged to the 403(b) retirement plan will be disclosed by the recommended custodians.

Low-Cost Investments:

Legend generally selects low-cost investments including index and/or actively-managed options.

Low-Cost, Best-In-Class Service Providers:

Legend recommends, where possible, best-in-class record-keepers, administrators and custodians to a 403(b) retirement plan’s investment committee to assist in providing cutting-edge 403(b) retirement plan services that minimize costs to both the 403(b) retirement plan and its participants.

Aside from low costs, best-in-class 403(b) retirement plan providers can positively impact the plan sponsoring organization’s talent acquisition, retention, and employee satisfaction. However, all decisions regarding any party that provides services to the 403(b) retirement plan and its participants are made by the plan sponsor and its investment committee.

Avoiding Potential 403(b)/Profit-Sharing Plan Problems:

Implementing and managing a 403(b) retirement plan can be a complex and high-risk effort if best-in-class 403(b) retirement plan providers are not selected. Failure to do so can increase daily management burdens, costs and time spent by a 403(b) retirement plan sponsor and its investment committee. Furthermore, by selecting the wrong 403(b) retirement plan providers, a 403(b) retirement plan sponsor and its investment committee may be subject to an increased likelihood of litigation costs as well as possible violations of department of labor laws.

Key Points Contained In The Investment Policy Statement (IPS):

An investment policy statement (ips) is a written document outlining the process for a 403(b) retirement plan investment committee’s investment-related decision making. Its purpose is to formally describe how investment decisions are related to a 403(b) retirement plan’s goals and objectives, as well as document the 403(b) retirement plan’s long-term outlook for the investments. A written investment policy statement (ips) can also provide a framework for 403(b) retirement plan participant communication and education including:

1. Define 403(b) retirement plan’s investment objectives.
2. Outline the roles of those responsible for the 403(b) retirement plan’s investments including the investment committee and the Section 3(21) fiduciary investment advisor or the Section 3(38) fiduciary investment manager.
3. Listed below is the framework for the investment options based upon the 403(b) retirement plan’s demographics:
   1. Develop procedures for selecting and monitoring investments.
   2. Establish investment procedures, measurement standards and monitoring criteria.
   3. Develop guidelines for replacing specific investments and/or asset classes of investment managers that fail to satisfy established objectives.

Preparation Of The Investment Policy Statement (IPS):

If a 403(b) retirement plan does not have an investment policy statement (ips) Legend will assist the 403(b) retirement plan investment committee with writing one. If a 403(b) retirement plan does have an investment policy statement (ips), Legend will review it in-depth to ensure that it is current and meets the objectives of the 403(b) retirement plan’s goals.

Thereafter on at least an annual basis, the investment policy statement (ips) should be reviewed by both parties to determine if there have been any material changes to the goals and objectives or to the risk/return profile of the underlying investments. Included in this review is whether the stated objectives are still relevant as well as the continued feasibility of achieving the objectives.

Legend’s 403(b) Retirement Plan Investment Advisory Services Include:

1. Investment policy statement (ips) development and monitoring
2. Investment manager selection and ongoing evaluation
3. Quarterly investment performance benchmarking
4. Legend will hold periodic meetings/web conferences with the 403(b) retirement plan sponsor, investment committee and/or the plan participants (upon request) to review the underlying investment options’ performance.
5. 403(b) retirement plan sponsors will be mailed a monthly newsletter entitled “the employer’s retirement plan advisor”.
6. “The employer’s retirement plan brief”, a semi-monthly e-mail newsletter will be e-mailed to 403(b) retirement plan sponsors.
7. 403(b) retirement plan participants will receive the following monthly e-mail newsletters:
   1. The retirement plan participant investor
   2. The global investment pulse
   3. Legend’s financial planning newsletter
8. Educational videos for sponsors and participants
   1. On-demand 403(b) educational videos (70+ videos) for plan sponsors and participants
9. 403(b) retirement plan participants will receive investment education including:
   1. Information about asset classes and the types of underlying investments
   2. Types of investment risks
   3. Historical investment returns
   4. Inflation
10. Participant education webcasts
    1. Periodic webcasts regarding 403(b) plan issues
    2. Periodic webcasts on financial planning and investment subjects for the participants’ personal finances

WEBCASTS

Legend sponsors webcasts on numerous topics, specific to 403(b) retirement plan sponsors.  to view these webcasts, click here.