Limited Choice Management

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The Limited Choice Management service is designed for those clients who cannot choose their own custodian and/or the available investments inside the program are limited to less than 20 investments. Typically, clients use this program for their 401(k), pension plans, or variable annuities. In each case, the LCM client has a menu of 20 or less investments to choose from.

GFM will manage these investments for a reduced cost of 50 basis points per year (that is 50% of 1% per year). The minimum charge per quarter is $375. GFM would prefer that Internet access be available for these accounts.

For administrative purposes, all LCM clients are assumed to have made any deposits, withdrawals, purchases, or sales on the 15th of each month. The portfolio returns are calculated upon month-end only (as opposed to mid-month calculations available in our Asset Management service). The LCM service provides clients with reports on each of the individual investments along with the entire portfolio for time periods that begin and end at the end of any given month. In other words, this service does not provide daily updates and downloading to our computer systems.

The benefits to the client for utilizing our LCM service are as follows:

1. Professional management to review, select, and monitor the various investment options available to the client.

2. GFM will provide a cohesive portfolio management strategy for the client that includes the LCM portfolios and the client’s other Asset Management portfolios. Typically, the 401(k) and other retirement plan portfolios have the largest annual contributions and, therefore, are a major variable in the client’s financial plan.

3. Managing the LCM portfolios for the client will allow GFM to better serve the client’s overall financial planning needs.

4. The reports that GFM will provide in the LCM service are far more comprehensive and a better management and information tool for the client than is provided by the third party 401(k) administrators.