401(k) PlansUnleash the Power of Your Plan

The System is Broken!The System is Broken!The financial industry and 401(k) plans have failed their participants

In one year you have lost 30% to 50% of your retirement money 80% of the participants find the investment selection process

confusingYour plan provider has no incentive to provide ongoing support to

you

Broken industry tied to a flawed business model, with no incentive to change

Based on product transactions, not ongoing education and serviceService and education sacrificed in the never ending search for new

transactional businessMutual Fund based 401(k) plans are fundamentally all the same

The financial industry and 401(k) plans have failed their participants

In one year you have lost 30% to 50% of your retirement money 80% of the participants find the investment selection process

confusingYour plan provider has no incentive to provide ongoing support to

you

Broken industry tied to a flawed business model, with no incentive to change

Based on product transactions, not ongoing education and serviceService and education sacrificed in the never ending search for new

transactional businessMutual Fund based 401(k) plans are fundamentally all the same

Why We Are DifferentWhy We Are Different

We replace the current broken system with a new financial investment model that works

Move assets from flawed Mutual Fund approach to Active Money Management that provides both defensive and offensive elements to maximize investment returns and minimize market losses

Simplify and bring clarity to the 401(k) investment selection process so you can sleep at night with confidence in your plan

Focus on ongoing education and service so participants have the knowledge to make informed investment decisions

We replace the current broken system with a new financial investment model that works

Move assets from flawed Mutual Fund approach to Active Money Management that provides both defensive and offensive elements to maximize investment returns and minimize market losses

Simplify and bring clarity to the 401(k) investment selection process so you can sleep at night with confidence in your plan

Focus on ongoing education and service so participants have the knowledge to make informed investment decisions

We are focused on changing the industry so people can finally realize their financial

goals and retire in dignity

We are focused on changing the industry so people can finally realize their financial

goals and retire in dignity

Your 401(k) Plan Suffers FromYour 401(k) Plan Suffers From

Excessive FeesMost are hidden from you (see Bloomberg Report June 2008 on DVD)

Horrible Investment PerformanceTypical returns for 2008 negative 30 to 50%

Personal LiabilityThe really bad news: You are personally liable for the two

issues above pursuant to the 2006 Pension Protection Act

Our Solutions for YouOur Solutions for You

Eliminate excessive feesTypically reduce fees 40-60%

Improve Investment Performance Significantly Implement Institutional Third Party Active Money Management

Significantly reduce personal liabilityCurrently over 11,000 lawsuits (and growing) due to excessive

fees and poor investment performance.

Third party Active Money Management Firms assume co-fiduciary responsibility

Let’s Look at the Problems in More Detail

Let’s Look at the Problems in More Detail

Excessive Fees

Horrible Investment Performance

Personal Liability

Where do our Competitors Typically HIDE the Fees you May be Paying

Where do our Competitors Typically HIDE the Fees you May be Paying

12b-1 Fees

Revenue Sharing

Surrender Charges

Shelf Space

Finder Fees

Soft Dollars

Wrap Fees

… and more

The U.S. Dept of Labor identified over 17 different fees you could be charged… here are a few of the common hidden fees:

Ultimately, all of these fees result in drag on your 401(k) rates of return; excess fees can easily cost each and every participant over Half a Million Dollars (or more) over a 30 year period! This is why lawsuits are growing.!

Typical Fee Reduction ExampleTypical Fee Reduction Example

Our Fees are Completely Transparent No shell games… No moving fees to other

categories to lure you into alleged ‘Free’ or ultra low-cost plans that sound enticing…

…but defy common sense!

Our Fees are Completely Transparent No shell games… No moving fees to other

categories to lure you into alleged ‘Free’ or ultra low-cost plans that sound enticing…

…but defy common sense!

The prior slide entitled ‘Typical Fee Reduction Example’ is representative of our Fee Disclosure and competitive comparison that our 401(k) clients receive from us.

Our transparent fee structure and Active Money Management QDIA (Qualified Default Investment Alternatives) are fully

compliant with ERISA and the 2006 Pension Protection Act.

Let’s Look at the Problems in More Detail

Let’s Look at the Problems in More Detail

Excessive Fees Horrible Investment Performance

Personal Liability

Why Mutual Funds Don’t WorkWhy Mutual Funds Don’t Work

The problem with Mutual Funds:

Legally bound by investment “style”, i.e. Large Cap, Small Cap, Growth, etc.

Legally bound by “prospectus”, i.e. the investment rules of the mutual fund

Typically 88% of the assets must be invested according to the fund style and prospectus

The result:Money Managers are bound by a Broken System, forced to pick

the ‘best of the worst’No defensive aspect to investing, constant cycle of ‘Buy and

Hold (Hope)’ which has led to big lossesBig mutual fund companies have no incentive to change, they

make all their profit from the Broken System!

Active Money ManagementActive Money Management

What makes Active Money Management different from Mutual Fund Management?The answer is really quite simple; Mutual Funds by law and the mandates of the ‘prospectus’ must stay invested in the market, riding the ups and downs… purely an OFFENSIVE strategy that maximizes your risk, typically referred to as a Buy & Hold strategy!

Third party Active Money Management Firms are very different. The manager has FULL Discretionary Authority over the account allowing them to react to persistent market trends thus providing BOTH an OFFENSIVE strategy AND a DEFENSIVE strategy!

The discipline involves OFFENSIVELY catching 80% of the up (Bull) market while DEFENSIVELY avoiding 80% of the down (Bear) market… typically by moving out of equities in those devastating declining Bear markets which average a 34% loss every 5 to 7 years.

“When you are out of the market can be more important that when you are in” - Barrons 2001

What Investors Tell Us Are Their Greatest Concerns

What Investors Tell Us Are Their Greatest Concerns

1. Outliving my Money2. Protection of my Principal ( I want Less Risk)

3. Investment Performance

Investors Believe:Performance is important, but not at the risk of losing my

money.

Foxhall Money Manager vs. Typical PlanFoxhall Money Manager vs. Typical Plan

Foxhall Active Money Management more than doubles the returns of the S&P index.

What would you rather have in your 401(k) account after 9 years…

Have your cake and eat it too! Better investment returns with 80% less exposure to market risk!

In this example, Vanguard would have the MOST RISK, and Foxhall’s most aggressive fund would have the LEAST RISK.

$160,012 or only $71,878?

Foxhall Active Money Management Performance vs. Market

Foxhall Active Money Management Performance vs. Market

Understanding & Taking Advantage of the Fundamental Strength of Active Money Management’s DEFENSIVE STRATEGY is the Absolute KEY to Avoid Devastating

Losses in Future Bear Market Cycles!

Understanding & Taking Advantage of the Fundamental Strength of Active Money Management’s DEFENSIVE STRATEGY is the Absolute KEY to Avoid Devastating

Losses in Future Bear Market Cycles!

Lets examine some typical losses during declining (Bear) markets which occur every 5 to 7 years. Then we will take a look at what it takes just to break even from those losses.

Remember: The average loss every 5 to 7 years in typical investment portfolios is a devastating 34% (Not including the EXCESSIVE FEES you may already be paying!)

Gain Required to Break Even After

Bear Market Cycle

11%

50%

100%

Your Lossin Bear

Market Cycle

10%

33%

50%

Your Lossin Bear

Market Cycle

10%

33%

50%

Typical Foxhall performance1

vs.Typical loss in Bear Market cycle1

1 – See 12 & 24 Month trailing performance on previous slide “Foxhall Active Money Management Performance vs. Market”

Let’s Look at the Problems in More Detail

Let’s Look at the Problems in More Detail

Excessive Fees

Horrible Investment Performance Personal Liability

Fiduciary ResponsibilityFiduciary ResponsibilityWhat does this mean? Did you know…..

You have fiduciary responsibility to plan participants if:✔ You are or ever have made decisions on the plan

✔ You are listed as the Plan Sponsor

If you are determined to have fiduciary responsibility:✔ You are personally responsible for legal damages awarded

for paying excessive fees

✔ You are personally responsible for legal damages awarded for poor plan investment performance

✔ You are NOT protected by the corporation or E&O policies

✔ Your home & personal possessions are at risk to pay legal judgments!

As unfair and unreasonable as this may seem, nevertheless, it is the law.

Based on the 2006 Pension Protection Act

Common QuestionsCommon QuestionsQ1: How difficult is it to transition to

the IAI 401(k) platform?

A: With simple online tools, local experts and dedicated phone support teams to assist in the transition, your part is easy!

Q2: Is there local support when we move forward?

A: Yes, a team of fully licensed Investment Advisor Representatives are at your disposal to assist in plan transition, provide education seminars, and complimentary financial strategies to plan participants!

Q3: This is hard to believe, why haven’t I heard of this before and why isn’t everyone using Active Money Management Firms?

A: Active Money Management has only been made available to small/medium 401(k) plans and average hard working families recently due to the ground breaking partnerships of IAI and world class money management firms.

Common Questions cont… Common Questions cont…

Q4: Who else is taking advantage of Active Money Management firms?A: Endowments (Universities & Charitable Organizations),

Pension Funds, large and small companies, and individual families!

Q5: How do we know that this is not just another scam and the stated performance is real? A: We only work with money managers that meet GIPS (Global Investment Performance Standards), quarterly independent audits of performance data… only 5% of all money managers meet this rigorous standard.

Q6: Is Active Money Management available outside a 401(k) plan?

A: Yes, the Active Money Management advantage is available for qualified and non-qualified personal and family assets as well!

For more information:

Talk to one of the attendees of the 3/27 Los Altos Hills CC presentation

-or-

Call Justin WrightInvestment Advisor Representative925.922.7770

We Provide Solutions That Enable You to Achieve Your Financial Goals With Less Risk

We Provide Solutions That Enable You to Achieve Your Financial Goals With Less Risk

Are you willing to do TODAYWhat others won’t do…

…In order to have the life TOMORROW

That others won’t have?