Open Architecture 401(k) Provider Unveils Low-Cost 401(k) Investment Fiduciary Solution

DENVER, Nov. 15, 2011 /PRNewswire/ -- Lincoln Trust Company (Lincoln Trust), a leading provider of open architecture 401(k), profit sharing and self-directed IRA solutions, today announced the launch of the Advantage Plan, a pre-packaged, low-cost 401(k) solution geared toward small-market retirement plans.

The Advantage Plan features built-in investment and fiduciary support from Strategies, LLC (Strategies), providing 3(38) services for just 0.03%, a fraction of the cost of most fiduciary services. Along with the same institutional-quality investment management found in large plans, the Advantage Plan makes available best-in-class fund selections that have passed stringent monitoring criteria.

"Through the Advantage Plan, we provide a platform that gives employers and participants the tools they need for retirement success," says Tom Gonnella, senior vice president of Corporate Development for Lincoln Trust Company. "We make the retirement investing process easier and more cost-effective than current options in the marketplace."

3(38) Investment Fiduciary Services

Under the Advantage Plan 3(38) fiduciary services, Strategies will assume legal liability for the selection, ongoing monitoring and replacement of the plan's investment options. Strategies will work directly with Lincoln Trust to implement any changes to the plan's investment lineup, freeing up time for employers to focus solely on plan administration. Employers receive further legal coverage through a detailed investment policy statement, which outlines everything from fund selection criteria to investment objectives to the fiduciary party's duties and responsibilities.

"Many plan sponsors realize the need to delegate the investment selection and monitoring process to an outside party with the expertise that ERISA requires," said Strategies founder David Halseth. "It is an efficient and great solution designed to equip plan sponsors in building a quality savings plan for their employees."

Low-Cost Solution

Costs associated with the Advantage Plan are highly competitive. Because the Advantage Plan's average investment expense is only 0.43%, total fees for a $2.5 million plan with 50 participants would total only 0.66%, compared to the 1.50% industry standard. That means a participant with a $50,000 balance making an annual contribution of $8,000 with an assumed 7% gross rate of return over 30 years would earn close to $180,000 (or nearly 17%) more by the time of his or her retirement.

"Employers will appreciate the lower costs, which in turn, will produce increased savings for plan participants over time," says Gonnella. "We're basically putting money back into participants' pockets, money which can then be reinvested back into their retirement future."

True Open Architecture

The Advantage Plan narrows down the field of 24,000+ mutual funds to a best-in-class fund lineup that includes core investments consisting of both passive and actively managed funds, in addition to providing exposure to some alternative asset classes including real estate and commodities. Among the fund companies with products currently offered through the plan are industry leaders such as Vanguard, Pimco, T. Rowe Price, American Funds and DFA.

About Strategies, LLC

Strategies, LLC is an investment and plan consulting firm based in Denver, Colorado, that was established in 1993. Independent and fee-only since inception, Strategies advises institutional clients, primarily participant-directed defined contribution plans. The firm specializes in the fiduciary aspects of investment and plan consulting with the experience to guide fiduciaries and assist participants with specific investment advice.

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 all 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. Lincoln Trust is also a leading independent provider of self-directed IRAs. For more information, visit www.LincolnTrustCo.com or call 1-855-719-5796. Follow them on Twitter @LincolnTrust.

SOURCE Lincoln Trust Company