FOR BUSINESS OWNERS – On a personal note

Here, you will find information on different topics for business owners. This information is updated frequently. We hope you find it useful. If you are considering a review of your company retirement plan for any reason, please contact us  for more information. We also offer unique retirement planning options for business owners that they can implement for themselves WITHOUT having to include employees. This is a powerful, stand-alone strategy that many business owners have been looking for.


Have you worked hard on building your business over the years, and in doing so neglected to establish and fund an adequate personal retirement plan for yourself that will even come close to meeting your needs? If that sounds like you, we offer a set of premium financing strategies designed to fill “gaps” in a client’s retirement plan or financial planning strategy. Using leverage, these leveraged wealth creation programs provide an opportunity for exponential wealth creation, the structure of custom business planning arrangements and much more.

Leveraged wealth creation programs address the conservative area of your portfolio and are designed to provide cost and benefit stability in your program over time – or to provide flexibility in business planning. Working together, an efficient loan product and a stable-performing crediting product provide you with a conservative retirement, business planning or wealth creation program. These programs are funded and backed by some of the strongest and most well- funded financial firms in the world. They are designed to provide an answer to the question: how will you fund your future? These strategies require no loan documents, no credit check, no personal guarantee, and in most cases no collateral.

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We start the process by identifying qualified plans that are local to our offices in Pasadena that have particular issues. These issues or “RED FLAGS”, include poor performance, high percentage of retirees still in plan, high fees, low participation, insufficient fidelity bond coverage, excess contribution penalties and many others. These are plans that need help. We schedule an appointment, meet with the owner or CFO, provide a complete plan overview, and then solutions to correct the issues. We understand that time is a commodity for you, so we do as much of the heavy lifting as possible for you – we make it simple.

1.Why does your company offer a 401 (k) plan and are you meeting your objectives?
Recruiting new employees, retaining employees, remuneration to employees.
2.Do you know your 401(k) plan fiduciaries)?
Recall that every plan has to have at least one named fiduciary, and there can be functional fiduciaries where one exercises control regarding the management of an employee benefit plan or disposition of its assets.
3.Have all of your plan fiduciaries read and gained an understanding of the plan documents?
ERISA Section 404(a) requires that plan fiduciaries abide by plan documents. Thus, a fiduciary must read and completely comprehend the plan documents as a first step in order to comply with the law.
4.Do you have the appropriate Section 412 bond?
ERISA Section 412 requires that every plan be bonded in an amount not less than 10 percent of plan funds, but generally not to exceed $500,000.
5. Do you have insurance?
Plan fiduciaries are exposed to personal liability and Section 412 bonds may be inapplicable or inadequate in addressing an alleged breach of fiduciary duty. Therefore, fiduciary liability insurance coverage is necessary
6. Is your plan a 404(c) plan?
If your company provides a plan under 404(c) whereby it provides a pool of different funds from which your participants select investments, you are responsible for choosing the universe of funds and educating the participants as required. If you comply with 404(c) requirements, you are not responsible for the participants’ specific allocation.
7. Do you have a vendor selection process in place for retention and review?
ERISA permits fiduciaries to delegate to professionals, but they must do so prudently in regard to selection, retention, and fees and expenses and have a well-documented process in place to document compliance.
8. Do you conduct regular investment committee meetings and prepare minutes to reflect issues discussed and actions taken?
The Section 404(a) duty-of-prudence can best be served by a well-documented, effective process.
9. Do you regularly benchmark your investment options in regard to performance, fees, and expenses?
The Section 404(a) duty of loyalty includes defraying reasonable fees and costs and acting for the exclusive benefit of plan par¬ticipants and their beneficiaries. A well-doc¬umented process in this regard in necessary and must go beyond just performance com¬parisons, and include fees and expenses.
10. Do you compare the effort expended in providing healthcare benefits to the effort your company puts into providing 401(k) benefits?
For benchmarking and comparison purposes, an interesting examination may be the efforts put forth by your company in selecting a health care plan when compared to the efforts in selecting a 401(k) plan. After all, there are no fiduciary duties or personal liability involved in selecting a health care plan, and, more importantly, health care plans mainly put company funds at stake. In contrast, 401(k) plans involve fiduciary duties, and notably, involve participant funds. Thus, where participant funds are at stake, your company must put in sufficient time and effort, which should be at least as much as, if not more than, that put into health care plans. 


In today’s financial environment, many employers face major challenges in meeting the obligations
of their defined benefit (DB) plans. Sustained low interest rates, an uncertain stock market,
lower-than-expected earnings and increasing PBGC fees have combined to jeopardize adequate
plan funding.

Sage Investment Group provides an excellent solution for your clients in these situations:

1.Plan Terminations

Meets plan specifications that guarantee benefits and benefit options earned by participants under a terminated DB plan.


2.Federal Accounting Standards Board (FASB) Settlements

Assumes plan benefit obligations for retirees and terminated vested participants .


3.Key Benefits for Plan Sponsors

ü  Removes plan liabilities from their books

ü  Allows the employer to provide an important employee benefit – with a minimum of cost and administration

ü  Allows single aggregate payments to the plan trustee, with the trust responsible for all tax reporting and tax accounting associated with the payment

ü  Provides institutional pricing

ü  Participant Benefits

ü  Guaranteed income for life or for a specified period

ü  Ability to provide ongoing income for a joint annuitant

ü  Multiple annuity payment options to meet a range of individual circumstances and goals

ü  Monthly, quarterly, semiannual or annual benefit payment options

ü  Optional cost-of-living adjustment, as permitted by the plan

Do You Feel You Are On Track To Successfully Reach Your Financial Goals? If Not, Request a No-Obligation Consultation With Us Today!

You can reach our office at 626-421-7685.

Contact Us

Sage Investment Group

2500 E Foothill Blvd, Suite 115
Pasadena, CA 91107
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Office Phone: 626-421-7685

Design, Build, Protect

Design, Build, Protect

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