We are happy to announce the official launch of Brinker Investment Services—a division of Brinker that will be dedicated to serving the audience of independent Registered Investment Advisors. Heading up the BIS team is Bill Simon, Managing Director.
Concurrent with the launch of BIS, we are also happy to announce our partnership with Schwab and the availability of our offerings on their Advisor Services platform. To support this new distribution channel, we’ve brought Frank Pizzichillo on board as RIA Regional Director.
Please click here to read the official press release.
Bill Simon, Managing Director, Retirement Plan Services
In an article earlier this week, Mr. John Bogle, founder of the Vanguard Group, decreed that America’s current retirement system is broken. As far as a fix, he offers only two suggestions. The first is to increase the current level of taxable income subject to Social Security taxes to $140,000-$150,000. The second is a reduction in the automatic cost of living adjustments that are used to calculate benefits.
While both would generate significant increases and savings to Social Security, they do not address the larger issues with our retirement system. As Bogle notes, the three pillars of retirement are Social Security, Defined Benefit plans and Defined Contribution plans—and they are in bad shape. In order for defined contributions plans to work better, we need to continue to automate as much of the functionality as possible, incentivize larger contributions, and make sure that an appropriate investment option is selected based on the participants age and realistic expectations about goals and markets.
Here is some food for thought. What if you could earn an additional tax credit by deferring at least 10% of salary or not having a loan against your 401(k)? What if an employer gave one additional vacation day per year if a company-wide goal of participation and contribution was reached? Ultimately, the system can work, but we need to continue to innovate and provide fresh ideas.
Click here to read more on John Bogle’s comments.
Bill Simon, Brinker Capital
Many businesses and advisors may be glad to have 408(b)(2) and 404(a)(5) behind them, but the reality is that the more difficult work may just be starting. As fiduciaries or advisors to the plan, it is the responsibility of the plan sponsor to review and analyze their plans’ fees and services to assure plan participants that they are reasonable. As a recent Wall Street Journal article points out, not only have a significant percentage of small business owners not even reviewed the disclosure notices, but of those that have, more than half don’t fully understand what they are reading. Confusion creates opportunity. At Brinker Capital we can clearly demonstrate how our 408(b)(2) disclosure is designed to provide clarity and transparency to this critical requirement while providing assistance and support to the advisor and plan sponsor.