welcome to dream-based investing
what's your dream?
Starting your own business? Sending your child to college? Living out your day dreams once your working days are behind you?
It all starts with a dream, and we never want you to question the motives behind our recommendations for making that dream a reality. That is why we encourage you to adopt our fundamental fiduciary approach centered on removing all potential conflicts of interest from our relationship with you. By so doing, you'll never wonder if our recommendations will be in the best interest of your dreams because we get paid the same no matter where your money is invested.
Have you ever wondered about the following regarding your current broker/advisor?
Do you have access to the entire universe of investment vehicles, or only those that pay your broker a commission?
What are you paying your current broker/advisor?
Is your current broker/advisor acting as a fiduciary in the best interest of your dreams or their own dreams?
you won't have to guess with us...
transparency is here.
those who plan, don't just dream
...they make it happen. Our process is designed to help you turn the dreamiest of dreams into an unreal reality.
dream review & updates
stay the course
get the right mix
Investing is like cooking. Think about the different types of investment asset classes or funds as the ingredients in your favorite recipe. How they are all mixed together is the asset allocation that fits your taste for risk and return expectations.
we can't control the markets...
...but we can help you control the costs.
The one sure way to improve investment performance is to lower management costs
at intellicents, we have made this a priority.
passive vs. active investment managementActive money managers generally employ high-priced humans to manage the underlying investments. Most often their goal is to out-perform their pre-defined benchmark. Historical data shows that many active managers fail to provide this performance premium. Therefore, another option is to actually “buy the benchmark” by instead hiring low-cost passive index managers. For most plans, investment management costs are the biggest expense. Numerous recent fiduciary lawsuits center on plan sponsors failing to monitor this expense.
utilization of low-cost mutual funds and ETFsWhether your plan offers active or passive funds or both, higher investment management fees do not buy you better investment management talent. There is no correlation between higher fees and higher performance. The one thing in the investment management equation that is controllable is cost. And several 401(k) recordkeepers today allow low-cost ETFs to be in the plan’s available universe of funds to choose from.
cheaper share classesPlan sponsors should always be evaluating whether there are cheaper share classes of their existing funds available. Most fund families offer lower cost “institutional share classes” for retirement plans. Recent rulings by the Department of Labor and the courts illustrate that this level of analysis is clearly an expectation of fiduciaries.
CITs versus mutual fundsWithout question, mutual funds are the dominant form of investment vehicle found in plans today, but they are not the only legal investment vehicle for plans to choose from. Many large plans have further reduced their investment management expense by moving to Collective Investment Trusts (CITs) for some or all of their investment options. Mutual funds were invented to allow the small retail investor to adequately diversify, and they are regulated by the Securities and Exchange Commission. CITs, however, are regulated by banking law, and are not available for the individual to invest in outside their 401(k) plan. Consequently, their cost for doing business can be lower. Once available only to very large plans, many are now available to even the very small plan. And many mutual fund companies are actually coming out with lower cost CIT versions of their mutual fund options.
buying in bulkThere is no question that more money buys you a better deal in the financial services business. Consequently, big plans have a lower overall cost structure than smaller plans, measured as a percentage of total plan assets. There are, however, ways for smaller plans to band together and collectively become a bigger plan, and thus get better pricing.
benchmarkingPlan fees have come down dramatically over the last several years. Proper fiduciary governance warrants plan sponsors to do a total cost analysis on an annual basis, and benchmark their plan relative to plans of a similar size. Fortunately, there are national data bases available for this comparison.
RFPDespite dramatic industry fee compression, plan service providers seldom voluntarily offer to reduce their fees. If you’ve been with a service provider for five years or longer, nothing brings them to the negotiating table faster than issuing a formal Request for Proposal (RFP) or briefer Request for Information (RFI). Plus, the results of this exercise don’t look bad to have in your Investment Committee or Administrative Committee minutes from a fiduciary governance standpoint.
hire a fiduciary investment advisor for the planThe vast majority of plans hire an experienced fiduciary investment advisor to not only assist in selecting and monitoring the plan’s investment menu, but to also oversee the responsibility of controlling plan costs. In essence, you are outsourcing some or most of your fiduciary responsibility, allowing you to focus on what you’re an expert at – getting more of your product or service out the door. Plus, the really good advisors will help you identify and decrease a huge hidden expense for most employers – the cost of delayed retirements.
The investment markets are going to go through different seasons. Unlike the seasonal changes that routinely occur during our calendar year, however, these seasonal investment rotations are difficult to predict consistently.
Our job is to help you define your dreams, weatherproof your investment portfolio by diversification appropriate to your dream timeline, and then keep you on that plan when the weather in the financial market gets tough.
our mind is on your money
Our dream team applies everything we’ve learned over 30 years of managing retirement plan money to the individual investor. We’re always asking ourselves questions on your behalf.
Are you on track to realize your dreams?
Are your investments meeting their appropriate benchmarks for risk, return, and cost?
Is your asset allocation meeting your risk and return expectations?
Are you getting value for the services we are providing you?
Under our transparent service delivery model, you will always know the status of turning your dreams into a reality, the risks that you are taking, the relative performance your investments are achieving, the investment costs you are incurring, and how much you are paying us to help you make it real.
people smarts supported by cutting-edge technology
Our staff of financial professionals will quarterback the entire process for you with the ultimate goal of finding you reasonably-priced investments that take the least amount of risk to make your dreams a reality. They will be supported not only by our internal research and administrative systems, but also by contemporary technology solutions designed to create efficiencies and put more knowledge and information in your hands.
One place to aggregate all your financial accounts
Electronic vault to store all your important documents so that you always have them handy
Self-help financial calculators so that you can always know how your dream plan is progressing
Advanced financial planning services from our team of financial professionals
Integrated money management solution
Low cost ETF investment management
Online investment advice tool
Flexible distribution options
Tax Loss Harvesting
Advanced financial planning services from our team of financial professionals
dream team services
retirement income planning