Model(k) provides a packaged solution for broker/dealers with full 3(21) fiduciary protection, and a core fund line-up of risk-based, asset-allocation models without the investment and platform constraints of the traditional product offerings. Advisers also receive retirement training through Lincoln Trust’s 401(k) Academy.
Broker/dealers and plan sponsors have been looking for alternate solutions to investing for retirement, according to Tom Gonnella, executive vice president of Lincoln Trust. “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,” Gonnella said.
Lincoln Trust’s strategy offers a transparent 401(k) alternative that keeps costs low and allows the adviser to be on the same side of the table as his or her participants and plan sponsors, according to Gonnella.
In addition to full 3(21) fiduciary risk management, Model(k) provides professional fund management as well as complete compliance and fee disclosure coverage. The retirement solution allows broker/dealers and advisers to focus on managing the relationship, Gonnella said, while the plan is professionally managed and protected.
The 401(k) Academy, a two-day education program, helps an adviser to become fluent in retirement plans. Also in the works, Lincoln Trust plans to offer a certification course and continuing education credits for advisers.
As an independent multi-manager solution, Model(k) services include:
- Investment Policy Statement;
- Pre-screened fund universe;
- Plan design assistance;
- Year-end preparation;
- Participant call center;
- Mid-year or projected nondiscrimination testing;
- Sponsor, adviser and participant websites; and
- Quarterly investment option reporting.
The firm’s Personalized Expense Ratio (PER) report, an “all-in” fee calculation, is available only on the Lincoln Trust 401(k) platform. Lincoln Trust’s Personalized Expense Ratio Calculator (PERC) walks an investor through a process to calculate and benchmark the real cost of a 401(k) plan.
More information is at Lincoln Trust’s site for the Model(k) management program.