Lincoln Trust Rolls Out Model(k): A Fiduciary Risk Management Solution for the Broker Dealer Market

Mar 04, 2013, 10:05 ET from Lincoln Trust

DENVER, Colo., March 4, 2013 /PRNewswire/ -- Lincoln Trust, a leading provider of open architecture 401(k) solutions for broker-dealers and registered investment advisors, announced today the launch of Model(k), a radically new, low-cost retirement plan solution that provides fiduciary risk management for broker dealers serving the small and mid-sized 401(k) market.

Model(k) breaks new ground for broker dealers by providing a packaged solution that offers full 3(21) fiduciary protection, a core fund line-up of risk-based asset allocation models without the investment and platform constraints of the traditional product offerings. Additionally, advisors will receive comprehensive retirement training through Lincoln Trust's 401(k) Academy.

"For too long, broker dealers and plan sponsors alike have been looking for alternate solutions to investing for retirement. The industry has been at the mercy of insurers and product providers, whose opaque fee structure and antiquated investment options have failed to deliver true value to participants," said Lincoln Trust Executive Vice President Tom Gonnella. "We are breaking that stranglehold by offering a transparent 401(k) alternative that keeps costs low and for the first time allows the advisor to be on the same side of the table as his or her participants and plan sponsors."

A Complete Retirement Plan Solution
Risk management is at the core of the Model(k) offering. In addition to full 3(21) fiduciary risk management, Model(k) provides professional fund management and complete compliance and fee disclosure coverage. "Broker dealers and advisors now have a retirement solution that allows them to focus on managing the relationship, knowing that the plan is professionally managed and protected," said Gonnella.

The 401(k) Academy, an intensive 2-day education program will allow the average advisor to become fluent in retirement plans. Lincoln Trust plans to offer a future certification course and CE credits for advisors as well. "We believe the 401(k) Academy will professionalize advisor ranks when it comes to retirement plans, making them more effective at providing the right plan for each client," said Gonnella.

Advisors benefit from a unique 401(k) platform that can deliver a truly independent multi-manager solution. The Model(k) packaged solution includes an array of services that allow easy management of a plan, including:

  • Investment Policy Statement.
  • Pre-screened fund universe
  • Plan design assistance
  • Personalized service
  • Proactive communication
  • Year end preparation
  • Participant call center
  • Mid-year or projected nondiscrimination testing
  • Robust sponsor, advisor and participant websites
  • Quarterly investment option reporting

Lincoln Trust has been a strong advocate for greater fee transparency and low-cost plans for the small- to mid-plan market. As the first true alternative to the traditional packaged product, Model (k) will combat the high cost, muddled fee structure of these products by incorporating Lincoln's industry leading solutions.

The firm's Personalized Expense Ratio (PER) report, the industry's most precise "all-in" fee calculation, is available exclusively on the Lincoln Trust 401(k) platform. Lincoln Trust's Personalized Expense Ratio Calculator (PERC) walks any investor through a simple 5-step process to calculate and benchmark the real cost of their 401(k) plan.

About Lincoln Trust Company
Located in Denver, Colorado, Lincoln Trust provides trust, custodial, recordkeeping and administration services to open architecture 401(k) plans and other defined contribution plans. By providing access to 24,000 mutual funds and 900+ ETFs without any proprietary product requirements and by using revenue sharing payments to offset plan expenses, Lincoln Trust is able to offer low cost 401k plan solutions to advisors and plan sponsors in the small and mid-size plan markets.  For more information, call 1-855-719-5796 or email Follow them on Twitter @LincolnTrust.

SOURCE Lincoln Trust