Fiduciary Investment Services

3(38) Fiduciary Investment Management

The majority of retirement plan sponsors or trustees that work with Galaxy Wealth Management, LLC pefer to work in a 3(38) fiduciary capacity. Under this arrangement, Galaxy Wealth Management, LLC  is appointed by the plan sponsor/trustee and accepts discretion over plan assets and assumes full responsibility and liability for the management of plan assets. As a 3(38) Investment Manager, we have the responsibility and the authority to select the investment options for the plan and to decide if and when to make changes to the plan investments.

If selected as a 3(38) Investment Manager, Galaxy Wealth Management, LLC's  fiduciary investment services are as follows:

  • If the plan does not provide for participant investment direction, Galaxy Wealth Management, LLC will be responsible for the selection of the plan's investments.
  • If the plan provides for participant investment direction, Galaxy Wealth Management, LLC  will have discretionary authority to determine the core investment options and qualified default investment alternatives under the plan.
  • Galaxy Wealth Management, LLC will provide model portfolios reflecting a range of risk and potential return characteristics appropriate as investment alternatives under an ERISA-covered retirement plan. These portfolios are updated by Galaxy Wealth Management, LLC on a discretionary basis. The available portfolios include:
    • Aggressive - Active or Passive
    • Moderate Aggressive - Active or Passive
    • Moderate - Active or Passive
    • Moderate Conservative - Active or Passive
    • Conservative - Active or Passive
    • Ultra Conservative - Active or Passive

3(21) Fiduciary Investment Advice

Galaxy Wealth Management, LLC can serve as a 3(21) Investment Adviser at the plan or participant level. If selected as a 3(21) Investment Adviser at the plan level, Galaxy Wealth Management, LLC  is appointed by the plan sponsor or trustee to act in a “co-fiduciary” capacity. Under this arrangement, the plan sponsor/trustee and Galaxy Wealth Management, LLC  share responsibility and accountability for any investment decisions made. Galaxy Wealth Management, LLC is liable and accountable for its investment advice to the plan sponsor. The plan sponsor is ultimately responsible for selecting the investment options for the plan and remains liable for its decision of whether or not to implement Galaxy Wealth Management's advice.

If selected as a 3(21) Investment Adviser, Galaxy Wealth Management, LLC's fiduciary investment services are as follows:

  • Assist in the development and/or review of an Investment Policy Statement.
  • Assist in the evaluation, selection, and monitoring of plan investments, core options, and qualified default investment alternatives, if applicable.
  • When requested, Galaxy Wealth Management, LLC will make custom investment recommendations to plan participants for their plan account.

 

Non-Fiduciary Services

Most retirement plan participants we have met over the years have said that they feel ill-equipped to manage their investments by themselves. The most common saying we hear is “I don't do this for a living so how should I know what to do?” Even with all of the technological and online educational resources provided by the large retirement plan platform providers, people are simply unsure how to invest for retirement.

 Our experience with plan participants is not unique. The 2015 Deloitte 401(k) Benchmarking Survey found that 40% of employees feel that they are not experienced or comfortable with choosing and managing an investment portfolio. “Where to invest and what funds to use” was the top concern. In addition, lack of awareness or understanding was the primary reason employees do not participate in their company's retirement plan, followed by the uncertain economy, and concerns about the job market.

People need help. It's that simple. Providing educational resources via technology is a necessity, but we have found that participants want to be able to meet with an adviser face-to-face. Participants want and need to speak to someone who is qualified to provide advice and make sense of their financial world. The 2015 Deloitte 401(k) Benchmarking Survey found that the most effective ways for advisers to communicate with plan participants are one-on-one meetings (23%), group meetings (21%), and targeted communications (21%).

For your employees to meet their financial goals, quality education and service are pivotal. We support them in a multiplicity of ways:

  • Group enrollment meetings: on-site and/or virtual
  • Financial education seminars: on-site and/or virtual
  • One-on-one participant meetings: on-site and/or virtual

While many of our competitors treat plan participants like a number, we see them—and serve them—like our private clients. We measure our success by their success.

 

Pleasse Contact Us at 9548269765