Workforce.com reported on the DOL's proposed new fee disclosure structure and here is a bit of what they reported.

"the Department of Labor proposed a new disclosure rule on Wednesday, December 12, that would give more insight into fees charged by certain service providers and any potential conflicts of interest that could influence the providers.

The proposed rule is the second of three fee-related regulations the DOL plans to issue. It requires service providers to disclose, in writing, to plan fiduciaries of 401(k) plans and other employee benefit plans all services to be furnished; all direct and indirect compensation to be received; and any potential conflict of interest, such as material third-party relationships, that could affect their objectivity under a service contract or arrangement."

I find it interesting that our biggest competitor is not the products of our competitors, but their ethics.  When the Pension Protection Act came out there were some in our industry that were worried because they would have to come clean on their practices and products, along with putting everything in writing.

At The Best 401k Inc, we cheered the Act.  We have been running our business like this for over a decade.  We have lost out on initial sales to our competitors due to the fact that they prepared a nice little package that gave every benefit under the sun without the actual costs of those benefits that they decided to keep behind the scenes.  A recent client said to us, "You guys really have something here, you should be out there marketing this thing, it's great."  This is a typical response from our clients, but like many they had the notion of "this is too good to be true" before signing up with us.

Since the mid-90's, The Best 401k Inc. has charged their clients ONE low-asset based fee to cover every conceivable plan fee INCLUDING active investment management.  The fee includes any type of customer service (phone, internet, investment advice, semi-annual face-to-face reviews) to signature ready 5500 forms to all administration.  We even took it a step further and partnered with TD Ameritrade to provide the most comprehensive open-architecture investment plan available on the market.  We provide our clients with the most honest independant advice in the industry and purchase investment vehicles that perform for our clients, not provide back end revenue for us.

I find it interesting that the DOL even has to come out with this proposed fee disclosure and that this offering even makes news.  However, we thank the DOL and those helping to regulate the industry to have ethics that should never be compromised.

To find out more about The Best 401k Inc., please contact Scott McNeill at 1-800-430-8054 x 102 or via e-mail at scott.mcneill@thebest401k.com.

By: Scott T. McNeill

President

The Best 401k Inc.

The Pension Protection Act of 2006 made the 401k Saver's Credit official.  If you participate in a 401k plan you may be entitled to up to a $1,000 tax credit.

Here is how you qualify:

• 18 years of age or older
• not a full-time student
• not claimed as a dependent on someone else's return
• Must file your taxes singly with an income less then $26,000
• File your taxes as head of household and have an income of $39,000 or less
• File your taxes jointly with a total income of $52,000 or less

Single filers that have an income of $0-15,500 get a credit of 50% of contributions along with Head of Households that have an icome of $0-23,250 and joint filers with an income of $0-31,000.  Those receiving 20% of their contributions are single filers with $15,500-$17,000, head of household $23,250-$25,500, and joint filers $31,000-$34,000.  Single filers with $17,000-$26,000, head of households with $25,500-$39,000, and joint filers with $34,000-$52,000 recieve a 10% contribution credit.

This is just another important item that came out of the Pension Protection Act of 2006 along with the recommendation of having a RIA attached to your 401k plan.  At The Best 401k, we not only stay on top of what is important in the regulations of 401k plans, but we are also RIA's that actively manage the assets in your 401k account so you are maximizing returns with minimized risk. 

To speak to me about The Best 401k, feel free to contact me at 1-800-430-8054 x 102 or via e-mail at scott.mcneill@thebest401k.com.

By: Scott T. McNeill

President

Bloomberg.com writer John F. Wasik thinks that taking the responsibility of having and managing a 401k plan out of the employers hands and into the employees hands would "create a competitive national market. Similar to what happened with private Medicare supplement insurance policies, a government- mandated template would drive down costs. Middlemen would get the boot and employees could improve their total returns."

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wasik&sid=aqpvSL830KDc

Well, Mr. Wasik has never worked with The Best 401k.  We don't believe that employers should not have any hand in the 401k plan, but we do believe that the 401k account for individuals should be treated like an unqualified account in which the client gets their own account, know the fees they are being charged, have an open architecture plan, and only be charged an asset based fee and not the typical asset based fee plus TPA fee.  The reason Asset Management Services Group Inc started The Best 401k ten years ago is because we saw a laissez faire approach to the industry and the investments.  We continue to see this approach with giving investors limited investments or unsophisticated Lifecycle Funds and Annuities. 

We are not discounting that many people see Lifecycle Funds and Annuities as good investments and at the end of the day whatever someone decides on for their investments is their right.  We just believe in giving EVERYONE options in order to best ensure their retirement. 

We agree with Mr. Wasik that the industry is bogged down by poor investment choices, too many fees, and too many cooks in the kitchen.  Mr. Wasik and the rest of you may feel free to tell your employer that The Best 401k has what you are looking for.  We can give EVERY employee the type of 401k account that will allow them to work with an Independant Advisor to maximize an investment strategy that they are comfortable with coupled with cost being severely diminished as to not take away those profits obtained by those personal and sophisticated investment choices.

As always, if you would like to speak with me in regards to The Best 401k, please contact me at 1-800-430-8054 x 102 or by e-mail at scott.mcneill@thebest401k.com or simply respond below.

By:  Scott T. McNeill

The Best 401k Inc.

I have seen recently that Mass Mutual and John Hancock are looking to add onto their bottom line by offering Fiduciary Warranties that don't actually cover the plan for any of the lawsuits that are being brought today.  I'm not the only one either, Parker Payson who is a principal at Employee Fiduciary was quoted on Employee Benefit News saying, ""There is nothing new here other than the brazen degree to which vendors are trying to capitalize on fear.  Most of these fiduciary guarantees are marketing gimmicks, nothing more. If plan trustees read the fine print, they'd notice that these guarantees typically exclude protection from the suits that are actually being filed against employers."  Parsons continues by saying, "Trustees need to demand that vendors include provisions that only share classes with the lowest expense ratios are offered to participants without mark-up, that vendors won't make any money on the float and that all available revenue sharing is returned to the plan."

At The Best 401k, we couldn't agree more.  We have converted many insurance 401k plans to our plan due to the simple fact that we are upfront and honest about our fees and that we can show true independance in the investments we offer.  We are able to provide our clients with the investments they desire with The Best 401k making no more then the very low asset based fee that we charge our clients on a quarterly basis. 

We often get the surprised skeptical stare from clients that we initially approach about how we run our 401k plan with the words, "It's too good to be true," being a common response.  No, it's not "Too Good to Be True," it's simply what is right by the client.  We started our 401k business about 10 years ago when our clients started asking us for advice on their 401k plans.  We would sit down and discuss the options with our clients and quickly realized that the plans were almost set up for failure do to the the high expense ratios and lack of options.

By hiring The Best 401k, you not only significiantly reduce your fiduciary responsibility because we are an RIA acting as Trustee, but you gain a truly independant advisor that you can trust will give you the advice that is best for you and your investments not their bottom line.

To learn more about The Best 401k, please contact Scott McNeill at 1-800-430-8054 x 102 or by e-mail at scott.mcneill@thebest401k.com.  Visit us on the web at www.thebest401k.com.

By: Scott T. McNeill

Director of Sales and Marketing

The Best 401k, Inc.

I really like when I get good news from the IRS.  On October 18th, the IRS said they are going to raise contribution limits on 401k plans for 2008.  These limits will take effect on Januaray 1, 2008.  This good news coupled with news from the Investment Company Institute stating that American retirement assets rose to a record level of $16.6 Trillion dollars recently is showing that Americans and Government are realizing that fully funding their retirement plans is extremely important.

The IRS increased limits in every major category except for elective deferrals and catch-up contributions.  The limits are as such:

2008 Contributions

Elective Deferalls- $15,500

Annual Defined Contribution Limit- $46,000

Annual Compensation Limit- $230,000

Catch-Up Contribution Limit- $5,000

Highly Compensated Employees- $105,000

Some Financial Professionals would suggest to invest just up to your companies match, but with the limits today, investing as much as you possibly can will not only create a more comfortable nest egg for you, but actually might help you to make your decision to retire earlier easier.  For those that are in your prime money making time period this is the time to put away the most money you possibly can because your earning abilities will never be as great as they are now.

We hope you are working with your 401k advisors to maximize your plan through contributions, investments, and reasonable fees.  If not, feel free to contact The Best 401k at 1-800-430-8054 or look us up on the web at www.thebest401k.com and fill out a RFP.

By: Scott T. McNeill

Director of Marketing and Sales

The Best 401k Inc.