Frequently Asked Questions:
1. WHAT is - LDI-MaPPs™?
LDI-MaPPs™ is a Plan Participant Managed Account Program-MaPPs™ for Defined Contribution (DC) Plan Participant directed retirement plans with Qualified Default Investment Alternative (QDIA) status that is far superior to any other QDIA option available today.
2. WHY LDi - MaPPs™?
LDi- MaPPs™ provides a better designed and professionally managed Plan Participant directed account management system. LDi-MaPPs™ has a legal “Opinion Letter” confirming its’ QDIA status by the Retirement Learning Center. LDi-MaPPs™ also has filed with the Department of Labor for a DoL “Advisory Opinion” letter as a managed account QDIA. LDi-MaPPs™ is far superior to any other QDIA investment option for self-directed Defined Contribution (DC) 401(k) retirement plans.
"Better Plan Design with a professional Plan Participant account management system = Better Retirement Readiness Outcomes"
3. HOW does LDI-MaPPs™ provide Advisors a competitive edge with Plan Participants and Plan Sponsors?
LDI-MaPPs™ is “re-booting” the 401(k) retirement plan with Defined Benefit “liability driven investing” (LDI) like attributes for Plan Participants. LDI-MaPPs™ is designed to help Plan Sponsors, Plan Participants and their Plan Advisors understand and provide a better investment approach to assist Plan Participants solve for retirement readiness designed to secure better retirement readiness outcomes.
A. The LDi™ Plan Participants Advisory Report™ - PPAR™ is driven by five readily available employee census data statistics; age, plan stated plan retirement age, account balance, wages and wage deferrals calculating a retirement income replacement ratio. This calculation identifies the Plan Participant’s LDi-Index™ designed to enhance solving for obtaining their retirement readiness and better retirement outcomes. LDi-PPAR™ provides the following information to Plan Participants:
1. Identifying Plan Participant’s personal Liability Derived index™, LDi-Index™ to achieve their targeted retirement income replacement ratio.
2. Various retirement planning scenarios (risk/return scenarios).
3. PPAR™ can optionally include other external retirement plan accounts for total account aggregation to potentially lower the LDi risk/return requirements
a. Previous employer defined contribution account balances
b. External Individual Retirement Accounts (IRAs)
c. Additional employer or previous employer retirement plan account balances
d. Other non - retirement assets to be modeled by Plan Consultant Advisors or Plan Participant personal Financial, Tax or Accounting Advisors - integrating PPAR™
*LDi boot camp orientation / certification has been developed to empower 401(k) Advisors and Investment Fiduciaries to better understand and apply LDi-MaPPs™ to their investment programs to assure best practices for better Plan Participant retirement outcomes and fiduciary adherence for Plan Sponsors. This has been accomplished in collaboration with 3ethos Global Fiduciary Strategist (GFS) courses at Thunderbird Graduate School of Global Management and Certified 401(k) Professional –C(k)P designation through The Retirement Advisors University (TRAU) at UCLA and the adjunct participating faculty members and their supportive organizations.