A Cyberside Chat Live - Making Financial Decisions For Today...
SUMMARY KEYWORDS
businesses, virus, participants, withdrawal, robert, loan, plan, money, remote, parts, year, business owner, 401k, employee, bit, furloughs, pay, matching, act, market
SPEAKERS
Robert Young, Jess Coburn
Jess Coburn 00:47
Morning I'm Jess Coburn CEO replied innovations and this is another episode of fireside chats. Today I have with me Robert Young Robert, could you talk a little bit about
Robert Young 00:58
money thanks guys for having me on. I'm Robert Young. I'm the principal investment manager and actually compliance officer for ra called young financial services. We're essentially a hedge fund, we have two parts of our practice. We manage money privately for individuals, but we also have a corporate side that we manage corporate pension plans. And that's, I think, what has more bearing on today's conversation than the private money management side. There's some exciting things happening that could help business owners and that I'm sharing with you.
Jess Coburn 01:32
So you've been doing this for a while, Robert,
Robert Young 01:34
over 25 years, had the old practice before then, like most advisors came up through a training program or training system, licensed through 766 and then eventually reached a point in the amount of money that we managed. We go directly and be registered with the SEC and through FINRA, so that's it.
Jess Coburn 01:55
For a business that has a 401k What is it exactly that you do?
Robert Young 02:00
So on a 401k side, we manage the investments in the available for participants. We analyze those and make sure that they're operating against their peers in the lowest cost or best performance, then we also act as fiduciaries. we oversee a number of back office parts of the plan. And then we educate participants and we use some of the information for private money management side, and just give that to participants to help them and advise them on the best strategy to reach their goals. So that's really it. And that brings us some things happening today that you might be aware.
Jess Coburn 02:38
Yes, I'm curious. I know there's been a ton of changes. I'm curious how that impacts, let's say the business owner, let's start there.
Robert Young 02:44
Alright, so actually, we'll start with the business owner and then business owner slash participants. Perfect. So the first thing is, with course the virus is shutting down and throwing businesses, although we're reopening. I think there's a lot of trepidation on moving forward there, simply furloughs still going on, not every business is rolling out. and business owners are finding we're finding that some are having some challenges on revenue and some concerns about cash flow. So the first and most important thing that was now available to a business owner is if you have a 401k and you are using a match a safe harbor metric 3% match or better, you can suspend that or you can lower that matching rate. Normally, you couldn't do that in a year that could really helping a cash flow or expenses that businesses is being impacted by definitely. So
Jess Coburn 03:47
probably gonna say and then if you needed to do that, it's fairly straightforward and easy to do it well.
Robert Young 03:53
Yes, it is easy now normally wouldn't be that their plan amendments have to be done and With your every platform out there from paychecks and ADP to john Hancock empowerment and power and Transamerica, all of them are making it user friendly for a trustee to be...
