Sage and JULY Join Forces to Introduce Turnkey Cash Balance Plan Solutions
AUSTIN, Texas, Oct. 14, 2014 /PRNewswire/ -- Sage Advisory Services ("Sage") and July Business Services ("JULY") have launched a full-service packaged solution for cash balance plans. The unique web-based service, Cash Balance Complete, introduces institutional cash balance expertise to small and mid-sized businesses. Unlike other offerings, this service combines the experience of an established investment management firm, Sage, with the independence, actuarial track record and packaging expertise of a leading retirement plan provider, JULY.
There has been a broad-based increase in demand for cash balance plans, but regulatory and actuarial complexities can make them challenging and expensive, especially for smaller and mid-sized businesses. Sage's Cash Balance Complete program is more accessible and cost-effective than the customized approaches that have been the norm for the industry. As a result, it provides investment advisors with a low-fee channel to optimize clients' retirement savings opportunities, particularly when they have reached the maximum level of contributions to their defined contribution plans.
"Smaller to mid-sized companies don't have access to the institutional experience needed to capitalize on professionally managed cash balance plans," said Robert Smith, President and Chief Investment Officer at Sage. "We developed Cash Balance Complete to bring significant design and cost efficiencies to this market segment, without displacing the trusted advisors that are the core of retail investing."
"The benefits of cash balance plans are obvious, but without experienced actuarial and plan management services, they can be confusing and time-consuming," said Blake Willis, Principal at JULY. "There are few true experts in cash balance plans, and we are happy to partner with another industry leader in Sage."
JULY is a national service provider that delivers actuarial services, custom plan designs, recordkeeping, administration services, enrollment materials, education and reporting to more than 3,000 clients.
Cash balance plans are a type of defined benefit plan that can allow employers to fund much larger contributions than permitted in 401k and profit-sharing plans. Due to their cost savings, tax-preferred status and flexibility with existing investments, cash balance plans are the fastest growing type of retirement plans, with an average annual growth of 19% over the last decade.
Sage has constructed three different collective investment funds (CIFs) with unique risk sets to meet target interest crediting rates, and engineer glide paths to de-risk as goals are met. CIFs provide efficient access to investment strategies, offer daily valuation and are easily traded through the National Securities Clearing Corporation. As opposed to mutual funds, CIFs are solely available to ERISA assets and maintain transparent fee structures and offer more flexible recordkeeping processes.
Sage Advisory Services is a pioneer in investment solutions. Sage has been working with cash balance plan clients for over a decade. It manages cash balance plan portfolios for a wide range of cash balance sponsors and continues to evolve its investment strategies to meet clients' special constraints and needs.
About Sage Advisory Services
Sage is an independent investment management firm headquartered in Austin, TX, that serves the institutional and private client marketplace with traditional fixed-income asset management, global tactical ETF strategies and liability-driven investment solutions. As of 09/30/2014, Sage manages and advises $10.7 billion in client assets. Please visit www.sageadvisory.com for more information.
About July Business Services
July Business Services is a leading retirement plan provider that helps financial advisors and third party administrators deliver successful retirement plan strategies. JULY brings independent, expert knowledge to all facets of the retirement plan process from customized plan design to hands-on implementation and management of the plan. For more information about JULY, visit www.julyservices.com.
SOURCE Sage Advisory Services
Share this article