Tony Robbins 401(k) Plan: Fee Comparison Breakdown

[0:01] JD: Sweaty hot. All right. Pdc on three. One, two, three. [0:20] Chad: Pdc. [0:26] Mark: I really love it when you guys clap like that. [0:30] JD: Sorry. Welcome. [0:31] Mark: Dad's got a very two Fireholics Episode six. Six Half dozen. [0:40] JD: Sink. No, that's fine. [0:41] Chad: I'd say we're better than we were in the first one. [0:43] JD: We're better than six. [0:45] Mark: Yeah, we're better looking by now. [0:47] JD: Welcome. I apologize if you've tuned in to our sixth episode, but we'll do the best we can. Today we are going to. Our bulk conversation will be about the Tony Robbins America's best 401k plan. We will supplement it with some other industry topics. But the first thing I want to do is acknowledge some of our audience. I'm not going to call them fans because. [1:20] Mark: Because that doesn't exist. [1:21] JD: They're not really fans. But we do have an audience and our audience have been. What's that? [1:26] Justin: What are we up to now? [1:27] JD: Oh, well, we've over a thousand, 1040 something views. So that's. That's a lot more. [1:32] Chad: But I would say close, close to 940 of them. Are you. [1:36] JD: It doesn't register like that. These are people that. [1:40] Justin: Back to episode three then we're still at the same. [1:42] JD: Trust me. I've tried to re watch it to get the views. Doesn't work. But we've gotten some. Some feedback. Some positive, some negative. But we've got some feedback. We got an email or a text to Mark from an advisor who said he really loved our TPA sucks hats. Right. [2:02] Mark: And he wants one. [2:03] JD: Yeah, he used some lmfa. What's, you know, laughing. [2:09] Mark: I think it was just out loud. [2:11] JD: So that was pretty exciting. Wow. We got. We got one from one of Justin's advisors saying that we were like Wayne's World. What did he say? [2:22] Justin: No, that was Chad's. Mine was. [2:24] JD: Oh, partner. [2:25] Justin: Actually, it was out on the course last episode. They came walking by and they said if we're ever going to the river. We were inviting these guys to the river. [2:35] JD: We're hoping you take us to your 401k. Point of sale. But they want to take us to the river, so that works too. [2:41] Mark: Which river? [2:42] JD: I don't know. [2:43] Justin: Did you party a little too much then? [2:45] JD: No, we didn't at all. And then we. I ran into someone at the Giants game. I was down by the bathrooms. The Giants game. They screamed. Instead of screaming my name, they screamed out retireholics. So that was interesting. Turned out to be one of your advisors. So yeah, we're rocking and rolling. So check us out@retireholics.com our social media. Yada yada. [3:07] Mark: Maybe he said that because he doesn't know your real name. [3:09] Justin: No, we never introduce ourselves on the show. [3:13] JD: All our names. [3:14] Chad: Always our names pop up. [3:15] JD: Our names pop up. They know who we are. [3:17] Mark: I want our editor to put my name right here, right now. [3:19] Justin: Does Fritos pop up Freeholding. [3:22] JD: Freehold. A. But we kick off. This is our version of a boring webinar, but we think it's a little cooler than that. And we kick off every show with beer. 30. Mr. Johansen and he got a little story about these beers, which kind of ties into our fans. [3:38] Chad: It does tie into our fans. Apparently our partners are starting to watch the show. About two weeks ago, we had a good partner in here, Mr. Tim Sesoya, who brought us all some beers specifically for the show. Specifically for the show. [3:55] Mark: Fancy beer. [3:56] Chad: Apparently, after watching the show, felt the need to contribute to the show, which we love. [4:01] JD: This is going to pop. This is going to pop. [4:04] Mark: If anyone else wants to send beer [4:06] JD: camera, I got it here. Well, that's very nice of him to think of Retireholics. When coming to our conference room, I don't know what corked beer tastes like. I'm ashamed to say. [4:23] Chad: Hey, hey. [4:24] JD: Can we give it a shot? [4:26] Chad: So I've got Imperial Pumpkin, which has me terrified, but I've got. [4:31] Mark: Come on, it's almost Halloween. Getting the spirit. [4:33] JD: I can't pronounce mine. [4:35] Chad: You have an Allagash. That's a pie. That's a very popular beer. I can pronounce Allagash. I can't pronounce the. [4:43] JD: It's like French [4:47] Mark: Belgian farm. [4:48] JD: Cheers. [4:48] Chad: Thank you, sir. [4:50] JD: The beers and the 401k plans, they [4:52] Mark: go together like peanut butter and jelly. [4:55] Chad: Are you reading that book to your daughter right now? [4:58] Mark: Which one? [4:58] Chad: Peanut Butter and Jelly. Actually, it's called peanut butter and cupcake, but he ends up falling in love with jelly. No, but I would like. Cupcake is in his best friend. [5:05] Mark: That was a bad pour. [5:06] Chad: Cheers. [5:08] Mark: Look at the awesome mug that these guys don't, huh? [5:13] Justin: Why do we have mugs? [5:15] Chad: Oh, yeah, there's more features. [5:17] JD: These aren't really mugs, but we got about castrated. Someone told us we're not beer connoisseurs. [5:23] Mark: If we broke the cardinal rule of drinking good beer, basically out of the bottle. So because of that, we listen, we appreciate feedback. Here we are trying our best. [5:34] Chad: These aren't pint glasses. [5:36] JD: We'll step it up. We'll get some. [5:38] Mark: We move slow. But I Listened same. [5:43] JD: Check out if getting the boot is appropriate because Justin was saying we should get the boot. All right, let's kick into our first and kind of our main subject today I think will be valuable for our advisors, for our attendees or our viewers, I should say is the America's best 401k plan that's got a lot of hype and eyeballs on it because of Mr. Tony Robbins. T. Rob, the motivational speaker dude, he's a big dude. [6:20] Chad: He should be in the NFL. I mean, he's like drunk. [6:23] Mark: I think. I think he plays for the Giants. [6:24] JD: He's pretty gnarly. [6:25] Mark: Oh, wait, you guys. [6:26] Chad: We would win if you played for the Giants. [6:28] JD: I liked him in Shallow how He's awesome. [6:32] Mark: What was he in shallow how? [6:34] JD: He's the guy. No, he's the guy who made the dude see chicks for who they really were inside. [6:41] Chad: Remember in the elevator where they got. [6:42] Mark: He changed him. [6:43] Justin: I remember that part. But wasn't he like. Never mind. I'm just gonna shut up. [6:47] JD: No, he's the one that changed him [6:49] Chad: in the elevator when they were changed. [6:52] Mark: He just played himself though. Yeah, he played himself a character. [6:55] JD: He played Tony Robbins, but he's one who made that. [6:58] Chad: He could probably do that happen. I could probably convince that. [7:01] JD: Convince. He's convincing. [7:03] Justin: Yes. [7:04] JD: The general public, much like shallow how that 401k plans are robbing them and that they need to take a closer look now. So I'm ripping on him, but we're not really. It's a pretty cool thing. So let's talk about the video so I can set the stage then get some of your impact and hopefully our audience learns a bit as we go. He's got a great video out there on their own website. He did an interview on LinkedIn. It's been on CNBC. I mean, a lot of press is going to be. In his new book, the video talks about the fact that a story. We've always believed in that plan participants and plan sponsors. He says 8 out of 10 of them don't understand the fees being charged their account. And 70% of those, 8 out of 10 or 70% of that 80% think that there are no fees, that their 401k plan is free. He says that's a problem. I think we all agree to that. I think our audience would agree to that. He then goes on to say that part of the problem with this is because it's hard to discover the fees. He says there's over 17 types. He references wrap fees and asset based fees. And participant fees and transaction costs and goes through the whole gamut of them all and sets that stage. He then talks about how that can erode away your balance or your nest egg over a period of 15, 20, 30 years. And then a reoccurring theme throughout or a huge core component of it is his belief and. Or America's best 401ks belief that they like passive investing versus active investing, which [8:47] Justin: is completely different than we've been hearing lately. [8:51] JD: Specifically. Well, it depends on the advisors you're talking to. And we kind of sit on the fence of that, you know. But specifically institutional share class of index funds, aka passive investing versus your, your typical actively managed mutual fund in a 401k plan. He represents those numbers as 1.50 as the typical mutual fund cost and 0.14 as what their program would kind of recommend an institutional index fund. So cool story. A great story. [9:25] Chad: Been around for a long time. [9:28] JD: Yes. Nothing earth shattering. [9:30] Chad: It's been there for a long time. [9:32] Mark: So. So good night story. [9:34] Chad: The, the big thing that, that I see when I see 1.4 versus 0.14 is really very. Two different structures. Two very different structures. One is taking into account other services that are needed for the plan advisor functioning, record keeping fees, perhaps administration. That's all nothing but investment. [9:58] JD: That's a great. I'm just kidding. But they know that's a perfect dude. Sorry, sorry. Go ahead. [10:06] Mark: We take offense to the fact, I mean, we're as a TPA for what we do. We get to go in there, dive in, learn about clients, design it, learn their objectives, learn their goals, really get in there and get our feet wet, our hands dirty, have fun with it. Should we take offense to the fact that he's kind of discounting that? [10:26] Justin: No, I don't think so because, I mean, I do. [10:29] JD: Well, yeah. [10:30] Justin: Okay. Yes, to us it's offensive, right? Because it's everything that we're passionate about and we do well. But that's not what he's trying to deliver, I don't think. I think he's trying to just get people's wheels spinning. [10:40] Chad: I think he's. I think he's avoiding that point of the conversation for the sake of the audience. [10:44] JD: We need to separate it into two things. The video and what he's offering as a solution or what America's Best is offering. So the video. No, it's. I mean, it's just talking about passive versus act, the overall solution. Mark. Yeah, we should be a little upset. We think there's value in a third Party administrator and proper compliance. [11:05] Chad: And that's that battle that you're referencing. There is something that we fought for years because whether it's Tony Robbins or a bundled solution, that's the nature of that conversation from a TPA and administrative perspective. But I think what Tony's trying to get across. [11:19] JD: You called him Ton. [11:20] Chad: Yeah, he's my man. Mr. Robbins and I. No, he's strictly comparing the investment costs and how it erodes away at someone's overall savings because he's a believer in a passive approach. But I think the main point that's missed in that for those that don't understand it, if it's a participant or a plan sponsor, one of those 80% or one of the 70 of the 80% that is watching that video, they're going to, my gosh, 1.4 versus 0.14. There's a drastic difference there. He even says through one of the conversation points as he's referencing a different article, but that it's a thousand percent difference. But what is really happening there is that that 1.4% or the 3.14 that he references from a different source is not just investment. I mean, theoretically it is the cost of the investment, but it's covering other services. It's like going to a doctor's office and paying. Paying for service at a doctor's office. Well, you're not just paying for his time, you're paying for the nurses that are there and the time that you're spending within there and potentially paying for the X rays that you got as part of that overall bill. That's what he's employing for your separated shoulder. [12:35] JD: For all of my point is, and I agree is that it's a little bit misleading. I don't think that's necessarily his intention, but it's a little misleading. So what. What our advisors need to know and if plan sponsors are watching, what they need to know and strategic partners, is that there's still record keeping going on with this best America's best 401k. It's done by Lincoln Trust. There's a fee for it. There's still admin going on. Done by Lincoln's Trust. There's still a advisor role. It's a little bit of a different advisor role, but it's a 338 role. [13:09] Chad: There's still an investment advisor role. [13:11] JD: So there are fees for those services. They're low cost fees because I've looked at them. I won't go into detail here, but [13:18] Chad: let's add it's not part of that 1.14. [13:22] JD: It's not part of that video. But they're still in the end, low cost. But like I've said, that's not earth shattering. T Rob. [13:30] Chad: Well, that's what I call them, man. [13:33] JD: We've had that for years. It's under shattering. [13:36] Justin: But to plan sponsors it might be. [13:37] Chad: It's because they don't quite understand. The neat thing is, and I think that this is maybe a good way to position this as an avenue or an arrow in an advisor's quiver. Not only is it not earth shattering, but every single advisor that's listening or watching this, you have this as a [13:55] JD: resource yourself, could offer the same kind of solution. [13:58] Chad: The same kind of solution. Think about this. Of the providers we work with who already has an institutional indexed available solution, most of them at any plan size, doesn't mean that they're less cost. It just means that there's an additional line item for advisor comp and for record keeping and admin. Just like this product has. Nationwide's doing it, Principal's doing it, Hancock's doing it, Standard's doing it, Voya is doing it, Empower has custom key. I mean, it's out there. They're all doing it. And every advisor, whether RAA or registered rep or iar, has access to it. What I thought was really neat about this is that it's Tony Robbins, who's a face who's. It's. [14:40] Mark: It's not Tony Robbins. It's actually Tony Robbins. He doesn't need quotes. [14:45] Chad: He's that big. He doesn't even need quotes. [14:47] Mark: No, he doesn't. If his name was like a nickname [14:49] Chad: for him, like T Rob, it's T Rob. Okay, good point. [14:53] Mark: Yeah, it's. [14:54] Chad: It's T Rob. He has, he has an audience, he has a following, he's impactful, he's motivational to folks. [15:00] Mark: He's a big dude. [15:01] Chad: He's a massive dude. [15:03] JD: He was awesome in ch. [15:04] Chad: There you go. So you take what he's saying. Imagine an advisor going into an initial point of sale and you're saying, hey, this is a conversation that many have avoided for years, but it's gaining so much traction that it's talked about on cnbc, it's talked about on Good Morning America. You have Tony Robbins, who people know he's preaching about it. And now what if you were to splice out, I don't know if you could legally do this, but splice out the two minutes, the two minutes of the middle logo without the logo, you know, when I first heard it when [15:35] JD: I first heard it and that logo came up. The end. There was part of me. I was wrong. There's part of me that thought that is this private labeled, like, are there people over the country that can throw their logo on the end of this? [15:47] Chad: And it's him. [15:47] JD: But. But it was. [15:48] Chad: Well, that's kind of what happened, according to the testimony, is he took his company's plan there, fell in love with it, and then decided, I'm now purchasing ownership of the company or part of. Part ownership, I would imagine. [16:00] Mark: I didn't get that from the video. I feel like he just. [16:02] JD: He said that. [16:03] Chad: Did you see the interview? It's the interview that he really. [16:06] JD: He did say that on the. He said he took his plan out to market. [16:10] Mark: I have just a question, though, because again, he's a motivational speaker. [16:15] JD: How'd you like to get quality administrator? He could be our spokesperson. [16:18] Chad: Yeah, we would have to clear the whole couch, but he could come sit in this entire region. [16:25] Mark: Freehold fit in the camera frame. No. Yeah. So he's a motivational squeak. [16:31] Chad: He's written books. [16:32] Mark: He's got a huge following. He's got nationwide presence. That's more than a lot of people can say. But let me just throw a curveball. I should say, let me throw a spiral. We got Peyton Manning. Right. Nationwide. [16:45] JD: See you. He does his ads. [16:47] Mark: He does the ads. What if he was like, so the same spiel. Would we be having the same conversation right now? Like chicken parm. [16:55] JD: You taste so good. [16:56] Chad: I think. [16:57] Mark: Would he be saying something? I'm a Raider fan and as a never wrong quarterback. Peyton Mann, you are a genius. [17:05] Chad: Yeah. [17:05] JD: No celebrity. Celebrity house. [17:07] Chad: I think this, the celebrity side of things would really help. [17:09] Mark: I think it helps a lot. It gives it more value to people who don't really care, to be honest. [17:18] Chad: Completely agree. I think the difference between the two. Wow. What Peyton has done with his career, his life, his dedication to the community would be impactful if he said those same things. He's not known as being a finance guy, and Tony Robbins is. He's known as being a life coach and a finance guy, and I think that's why it carries a little extra clout. [17:37] JD: So let's wrap it. I know you guys are passionate about this, but the video is cool. It's. I. I think it makes some great products. The product is nothing different than we've had for years. It's a low cost solution, whatever. And Tony Robbins is a cool guy and he does great motivational stuff and he really helped shallow house see the light. [17:59] Chad: Dude. Good for him. [18:00] JD: It is about someone's watch that movie. [18:03] Mark: It's fairly new. [18:04] JD: So now you know, right? Yeah. I think the wheel of ice should have like a theme song or a jingle of ice. The wheel of ice. The wheel of. [18:20] Justin: I'm kind of thinking more of an eye of the tiger. You know, just the intro. [18:25] JD: It's the wheel of the eyes. It's the wheel of the ice. [18:31] Chad: You need to plug your ear when you do it so that you can [18:33] JD: properly shout out yours. Referred to this human being that helps us, says the hand. You want to ask the hand to spin the wheel? [18:39] Chad: The hand. Let's see the spin. [18:41] Mark: The hand's gonna be a full person. It's gonna be Taco. Oh, I think that's Mark. [18:51] Chad: Is it? [18:52] JD: It's Mark. [18:54] Chad: My goodness. Your record stands, my friend. [18:57] JD: Get him that. [18:58] Mark: I'm undefeated. [18:59] JD: Get him that peach flavor. [19:00] Mark: Call me New England green. Green Bay. [19:02] Chad: Green Bay. [19:03] Mark: You like the nuts. [19:04] JD: You like the peach flavored one. Three. Oh, he's good. [19:08] Chad: Oh, it's the hand. It's the hand. [19:10] Justin: Oh. [19:10] JD: Standard wheel of smear off ice. [19:13] Chad: Let me open. I feel like you can't keep twisting those off. You're going to hurt your hands. [19:16] Mark: I'll drive. Sensitive hands. Skin. [19:20] JD: You guys are struggling. [19:22] Chad: There you go. [19:22] JD: There we go. [19:23] Mark: You're good at designing formal gate plants, not good at open sh. [19:26] Chad: That's because I don't typically open Smirnoff Ice. Does he have enough to move to give him room? [19:30] JD: All he always does is the. This is like the requirement. [19:33] Mark: Can I sit down and do it? [19:35] Chad: No. [19:35] Mark: Oh, okay. [19:36] Chad: Requirement. All right, Taco. [19:38] Mark: Hey, Smirnoff, if you're watching, you might want to just like hook me up with a sponsorship. [19:43] JD: Better than insure. Knock it down. [19:45] Mark: Actually, no, it's not. [19:47] Justin: I should have got him pumpkin spice flavored. [19:49] Chad: Ouch. There was about six flavors when I went there and got this one. Yeah. [19:52] JD: Hey, hey. While Mark's doing is smearing off ice, I'm gonna be. I'm gonna multitask. Can we help our advisors understand the new 2016 retirement plan limits? [20:02] Chad: It's gonna take a while. [20:04] Mark: They're the same. [20:05] JD: They're the same. [20:06] Justin: Jeez. [20:07] JD: So if that went past ya. The new 2016 limits. [20:12] Mark: This new year that we're going our what? [20:14] JD: Mark? [20:14] Justin: Instead of a five. [20:15] Mark: The same. [20:15] JD: They're the same. It's 2015. [20:18] Justin: After watching Mark chug and sure and loving it at the golf course, I really think that you can chug anything you put in front of him, you'd be wrong. [20:24] Chad: Pumpkin. Pumpkin ale. He may not be able to. [20:26] Justin: We need to start switching up the flavors consistently. [20:29] Mark: I need a chaser for my craft Smirnoff brew. [20:33] Chad: Do we all know where the Smirnoff Ice came into our lives? [20:38] JD: I just said that it came to me because. Yeah, you. So I got iced, and I was like, I don't know what that means. [20:43] Chad: You got ice. Do you remember where it came into our lives? [20:46] Justin: Yeah. [20:46] Chad: Your honeymoon. Yes. We were on a cruise ship on our honeymoon, and we got. We got brought up to do an event. Like, you know, the entire ship's around, and we had to carry, like, an egg on a spoon across the pool. And everybody's around huddled in. This group of people that we had met the night before came running up and iced us in front of everybody on this route. [21:07] JD: Putting a Smirnoff Icing at you, at you. [21:10] Chad: And then you immediately have. Wherever you are, have to immediately get on your knee and chug it. [21:14] JD: Is there a limit to that? Can they just come back and get you in the next 10 minutes? [21:17] Chad: No, no. I mean, it's pretty hard to find Smirnoff Ices. Took it to another level, started buying massive ones. [21:23] Justin: Well, no, I mailed you a six pack. [21:26] Mark: That's right. [21:27] Chad: But that's where it came. I mean, we were sitting in front of the cruise ship. The cruise ship ran out of Smirnoff Ices on that trip. Because once they introduced that to us, we just started icing them. Every time we saw this group, it was probably. I mean, there were six people that we had met. This group of six is the ones that introduced us to us. [21:43] Mark: The first one to do it on that cruise. Cruise ship, worked for Smearnoff Ice. [21:47] Chad: I have to imagine it was around this great idea, guys. [21:50] Mark: I've got this great idea. [21:53] Chad: I'm sure it has. [21:54] Mark: The ship is sinking. I've gotta do it. Do you know that Retire, no pun [21:57] JD: intended there on Instagram. Follow Smearnoffice. I even quoted them, like, I. Whatever it is when you put their. Their name on. [22:07] Mark: I gave some to him. [22:08] JD: Some. [22:08] Mark: Dude, I'm not. I'm not pounding that entire beer. [22:11] Chad: I would. I'm staying away from the pumpkin. [22:13] JD: See if they follow us back. But they didn't. [22:15] Justin: We totally just. [22:16] JD: No, it's fine. I just trying to talk about how I was trying to follow Smirnoff Ice and get them to recognize us online, but they didn't want to. [22:24] Chad: They probably watched the show and went, oh my gosh, we gotta get creative. [22:28] Mark: Maybe I should wear like a Smirnoff suit day. [22:31] JD: Someday they'll like sponsor us or something. I want to bring up some. I want to bring up some pop culture kind of things. So today I was doing a little research, simply googled 401k, hit the news deal at Google and I saw a headline and maybe our. Our editor producer can throw up the headline. I saw it says, MARSHawn lynch gives 401k advice. So I thought that might be something. I know you guys are big football fans. What do you think about the pitch of the story? Is that one of his players. I told you his name. Do you remember? Tyler Lockett said that Marshawn lynch helps him out with his farm can and it apparently helps out other guys on the team. And well, you're making. [23:20] Mark: He's making a lot of money. [23:22] JD: Why did this make headlines? Is Marshall lynch not a smart dude? [23:25] Mark: Those guys make a lot of money. He's probably like, first off, I think he put your 17, 5, 18k. Whatever the limit's gonna be for next year. [23:32] JD: Well, it'll be 18 for next year. The same. [23:35] Mark: So put that in. I mean that's what, like $3 to those guys, right? [23:41] JD: Yes. [23:41] Mark: Invest in Skittles. [23:44] JD: If they have a self directed brokerage account, they could invest in Skittles. [23:48] Mark: And he's a happy camper. He's probably like, bruh, let's be honest. [23:53] Chad: Is it a friend? I mean, I know he doesn't like to be in media. Is it a front? The personality? Because he went to Cal. He's got a master straight. I think he's got it. [24:03] Mark: He's just a personal. [24:05] JD: What's his name? Is he like beast mode or something [24:07] Justin: that does not like to do interviews or. Media is beyond popular and does a whole bunch of interviews, commercials. What's the last commercial he just did where he's up in the classroom like, I've been here the whole time, bro. [24:19] Chad: Yeah, hey, bro, I've been here the whole time. [24:21] JD: Yeah, I'm sure his teammates need help. [24:24] Chad: Well, that's what the. The article said. It starts with him with the teammate saying, I help him with all kinds of different things. He helps us with our 401k and he goes on to other topics. [24:35] JD: But because most NFL seahawks pretty smart with their investments, I'd imagine you got [24:40] Chad: Richard Sherman on your team. [24:41] JD: Well, he's like, he would like Stanford or something. [24:44] Mark: Ain't nobody got time for that. [24:46] JD: So it is okay. What would the lesson Be learned. It is okay for a plan participant to help other plan participants. Just don't do it if you're human resources or the plan trustee. [24:58] Justin: Right. [24:59] JD: Because we always get that. [25:00] Mark: Where could he get in trouble for that? [25:02] Justin: Yeah. [25:02] JD: If you guys came to me as the owner of the company here and said, hey, what are you doing in your 401k? What are you investing in? And I sat you down and said, oh, check it out. I do this and then you should do this. I could get in trouble. [25:14] Mark: So that private meeting we had, we shouldn't say that. [25:16] JD: No. Yeah, that shouldn't happen. But Marshawn lynch can help. That'd be like Justin helping Mark. [25:26] Mark: That's the funniest thing you've ever said. [25:29] Chad: Cheers, man. [25:32] Mark: Elbow, elbow. [25:34] Justin: You just Tom Brady me again. [25:36] JD: Last episode, we talked a bit about Nationwide's fun window. So kind of a vendor record keeper. Update this episode. Trans America, as I like to call Trans Am. They never. When I say that, they never like. I always say, they're like, okay, when [25:55] Chad: you first said that, I thought you were going after. You said ta. I thought you're going after Tim Allen, who's the local. [26:00] JD: I was gonna. [26:01] Chad: Trans Am. [26:01] JD: Trans Am, they come out a new product. We've been hearing about it for months. This small market product they're gonna come out with. And now it's released, so the brochures are out. You guys sat in on a webinar and learned a bunch about it. I stuck my nose into the brochures and read some stuff. So kick us off with this small market, which they mean 0 to 250 is where they're. I'll do a couple things and you take it from there. It's built in comp, so it's 50 bip. Bless you. 50bps regardless. Right. That's for the advisor comp. And it's take it from there, since you said on a webinar. [26:48] Chad: So I told these guys as we finished the webinar, I said, what are they really hoping to accomplish with the product? And I think it's one of a few things. The first is they want to compete with American funds. It was really dominating the startup marketplace. The second thing is they really want advisors who aren't willing to give them a shot at where they do their best work, which would be probably 1 to 5. We'll say they're not willing to give them a shot on the 1 to 5 because they don't know the product. They don't know the service team. They haven't Tested it and they're not because Trans Am never really bid well on the startup market or think smaller than a million. There are many advisors that never gave them a shake. So I think they're really working to get those folks to give them a chance on the small plan so that they can get their sweet spot, which would be 1 to 5. [27:30] JD: Okay. [27:31] Chad: And the third component is I truly believe they're looking at this and saying, hey, because the economy is doing well and things are doing well, we really want to go after this because these plans will grow into our ideal. [27:42] JD: It's happening now. [27:43] Chad: And it'll grow because you have these groups, especially when my RA started to come out and different topics. You have these groups that are now setting up plans that have 40, 50 people that are going to flow, you know, 150,000 a year. [27:56] JD: And the product was also looks to me like it was made to be simple too. [28:01] Chad: Very, very simple. [28:02] Justin: Focused on forever simple. Halfway through this, I said, man, they should have SmartEasy. [28:06] JD: Awesome. Which is kind of key in a small market. [28:09] Mark: It is. [28:10] Chad: And so I think the few advisors that I've talked to about it, they all came with kind of some negative thoughts initially of this looks very similar to any other product, just slightly lower in cost because their whole approach with Trans Amic creating the product was to have one kind of flat billable fee to the client and then nav in terms of investment. [28:33] JD: There's like a per head, right? [28:34] Chad: Yeah, it's a per head, $24 per head with a $500 minimum is how it's structured. And then nav funds that will range, you know, right around 175 to 2% all in. For a startup, they wanted to make it simple. It's multiple manager. The couple of beautiful things in terms of my opinion, the takeaways was it is simple, as you guys said. They're going to set it up to where all you need is a notice of intent starts the process. All contracts will then come out through DocuSign. [29:04] JD: You like that, didn't you? [29:06] Mark: I love that. [29:06] Chad: Because what's the worst thing that happens? And I'm not gonna ask name names, but you tell me you experience it live in color. What's the worst thing that happens when you're responsible for getting doxed completed? From, from a record keepers perspective, it's the back and forth. What do we check here, what do we check there? Oh, you checked the wrong thing. Now the docs come back not approved. Now you need to redo it. The DocuSign program is going to force you to click things correctly otherwise it doesn't let you proceed. So it eliminates the back and forth [29:31] JD: electronic signatures, signatures out of the gates. [29:34] Chad: You get to the point where the plan set up, you have a stated core menu. You have 321 fiduciary support on the core menu. It is what it is. [29:41] JD: Here's a million dollar question. What are the TDFs? [29:45] Chad: TDFs or Blackrock? [29:47] JD: So Black Rock. But yeah, they got another solution. [29:50] Chad: They do. Which is what I think is a selling point of the product is they're taking their upper market portfolio Express which is customized target date suites with the underlying core money core menu. Or Mesereau, sorry, they're co fiduciaries from Mesero. So I would assume that the asset allocation is set. [30:07] JD: Yeah, they're built on the same company [30:09] Chad: but they give you a multiple manager target date suite of the underlying core menu based upon age and risk tolerance. So it's not just a proprietary target date suite or a single fund family proprietary target date suite. Again, I think that that's a big selling strategy. But the third piece to it when it comes to simplicity is that they have three types of enrollment. You have online enrollment, you have phone in enrollment, which most everybody has. But then they're also still allowing for paper enrollment, which you'd be surprised. Advisors come back and say hey, people want to turn in forms and we want those to have some sort of ability to turn them in. They're calling it their enroll card. Enroll card. And it's a card meaning not a book. No, it's a card. A simple card. Six different questions. Turn it in, they'll enroll you. [31:01] JD: I like that. [31:01] Chad: So they are creating simplicity with it [31:04] JD: without having to do the whole enrollment book and killing all the trees and going through that whole process. Because that's why most people want to do online enrollment is most people record keepers because it saves in costs and it's cool, modern day, we're all gonna be there someday soon. [31:18] Chad: Well, it's easier to update materials too, you know, if they make a change to the fun menu, you're not rolling on an old book. [31:25] JD: So transit, what's it called? [31:28] Chad: Fast track. [31:29] JD: Oh, I will say very trans, Amy. [31:32] Mark: Although isn't that some sort of thing you get across the bridge for? [31:36] JD: Yeah, right. Just in the Bay Area, bro. It's a national park. [31:39] Mark: It's registered trademark. Trademark. Yeah. [31:41] JD: So Transamerica new small market solution. It's out, it's ready to rock. You guys like it, it's simple, it's Efficient. [31:53] Chad: I told them the one. When I had this conversation with the local rvp, I said the one area. Let's be honest. The folks who are making a big impact in the K market aren't typically looking for K plans or startup plans. They'll write some, but that's not what they're out getting. So those who are typically setting up startup plans don't necessarily want to spend the time to create the enrollment presentation, to go in and host the meeting, to really understand the process, to follow up, oh, turn your forms in on this date and. And to really spearhead that process. So they've created, which I've been pushing on other partners for years, a web enrollment process as well. So an advisor can take in a link or take in this web educational enrollment meeting, and it will still talk about the topics that you would typically cover in a normal education enrollment meeting and follow it up with an enrollment feature of the conversation. I think that's attractive for those folks. [32:48] JD: That's cool. Great show. Keep building our content and our value for our advisors. I think we've done it again. I. I think our outdoor golf show in San Clemente was pretty drab and to the point, but valuable and good. [33:06] Mark: We were in board shorts. [33:09] JD: Yeah. So it's kind of cool. [33:10] Chad: Hats. [33:11] JD: It was good informational. I thought we hit some good things today. Hopefully it'll come across. But for episode number seven, which I want you all to know will be our last episode for 2015, which means we've done seven episodes in the calendar year, and then we'll start up again in 2016. We will film in December and stay tuned, or tune in, I should say, because we're gonna do a new segment that I'm very, very excited about. We're gonna do trivia questions for Mr. Chad Johansen, and if he gets one of the questions wrong, they'll all be retirement plan questions. We are going to tase him with a tase gun. What do you call it? [34:02] Chad: Stun gun. [34:02] JD: A stun gun. [34:04] Chad: So that's dedication. [34:07] JD: That's what's gonna go down. That's legit. It's gonna happen. Tune in for it. So I'll just leave it at that. [34:14] Chad: But that's kind of excited about it. I might hit the ground and, you know, flop around for a little bit, but I'm excited about it. [34:21] Mark: First off, tune into that, because I [34:24] Chad: can't wait to see you hit the floor. [34:27] Mark: I'm probably gonna, like, jump on you, [34:29] Justin: and it hurts you more. [34:30] Chad: Yeah, yeah. My dog. [34:32] Mark: I don't know, real quick. This is. I mean, this is happening right when the World Series started. We're all baseball fans somewhat, right? Oh, pretty real quick. [34:41] Chad: Real quick. [34:41] Mark: 30 seconds. Who you got? Just name it. Who? [34:45] JD: Royals. [34:45] Mark: I thought you said the Orioles. [34:46] Chad: Okay. [34:47] Mark: What? [34:48] Chad: Royals and seven. I'm going to go against both of you. [34:51] Mark: Mets and six. [34:53] Justin: Rose and six. [34:55] Chad: There we have it. [34:56] JD: As long as not the Dodgers. I'm good. [34:59] Mark: Well, Mark loses. He has to put a 9 volt battery to his tongue. [35:03] Chad: There we go. [35:03] Mark: If I almost, I'll get stun gunned. [35:06] JD: Nope. [35:06] Mark: Nope. [35:08] JD: So thanks for tuning in. We'll see you next time with Chad. Commentetireholics.com comment on YouTube. If you have a YouTube account, text us. [35:19] Chad: That's been working. [35:20] JD: Text us. You can email us, you can send us. [35:23] Mark: Send us more beer. Please follow us. [35:26] JD: Facebook, which is retireholics. Instagram, retireholics. Twitter. Retireholics for stuff. There you go. All right. This is our version of a boring webinar. [35:55] Mark: If you want one of these limited edition freelike limited edition. Not jackets. But your TPA sucks hat, you can call 1-800-PDC for life. That's a fake number. Don't call it. Or you can challenge me to a duel on the golf course. You have to pay. I'll come play. I'll beat you. [36:21] Justin: No duh. [36:22] Mark: And then you get a hat. If I lose, which I won't, because I don't lose ever, by the way. [36:28] Chad: So remember that. [36:30] Mark: I win, you lose. [36:32] Justin: Okay? [36:33] Mark: So you'll never get a hat. You'll be sad. I'll have the hat. I'll wear the hat a lot. I'll wear it to a meeting. I'll win the plan. You'll be happy, I'll be happy. I'll take you to the golf course to celebrate. I'll beat you again. I'll keep the hat. It's a repetitive cycle, you see.