Description of the Advisory Firm
Retirement Plan Advisors, LLC (“RPA” or “Firm”) is a federally registered investment adviser
(“RIA”) located in the State of Illinois and is a wholly owned subsidiary of Retirement Plan
Advisors Group, LLC.
RPA was established in 2000 to provide retirement plan design, vendor search, plan consulting,
investment advice, employee financial education and counseling, and fiduciary services to
public sector employers and their employees. We set out with the goal of offering the
hardworking people who make our communities work the option of partnering with an
independent RIA to better address their retirement benefit needs. Since our founding, we have
expanded our service offerings to include discretionary and non-discretionary investment menu
and managed account services for private sector employer and multi-employer plans, including
Pooled Employer Plans (“PEPs”).
We are employer-sponsored retirement plan specialists, providing governance, consulting, and
investment advisory services to U.S. employers, including 401, 403, and 457 plans as well as
DB plans and retiree health care funding programs. The RPA team brings decades of
experience designing, implementing, and managing the day-to-day operations of employer-
sponsored retirement programs, ensuring they remain competitive and in line with industry best
practices.
RPA is owned by its employees, financial advisors, and Cambridge Investment Group, and is
led by Joshua Schwartz, the firm’s CEO and principal owner.
Types of Advisory Services
RPA offers individual and institutional clients a variety of financial services including: financial
planning, investment management, co-advisory services, third-party money management,
consulting services, retirement plan consulting, and 3(21) and 3(38) advisory services.
Individual Client Services
Financial Planning
RPA begins financial planning services with an in-depth review of the client’s current
financial situation and investment holdings. Together, from a life planning perspective, we
identify a client’s short-, intermediate-, and long-term goals. RPA then develops a
comprehensive financial plan integrating cash flow and budgeting issues, debt
management, tax-related issues, and a savings and investment strategy. As part of its
financial planning services, RPA provides advice regarding insurance products and will
disclose, in advance, any commissions received from the sale of insurance products.
Investment Management
RPA provides fee-based investment management services on a discretionary basis. Our
investment philosophy is based on strategic asset allocation principles, and may include
tactical components. Together with the client, we develop an initial model asset allocation
based on the client’s individual investment objectives, risk tolerance, and time horizon. We
recommend underlying funding vehicles – predominantly no-load or load-waived mutual
funds, exchange-traded funds, and Collective Investment Trusts (“CITs”) – to populate the
model allocation. The risk-adjusted performance of the investments is monitored and
changes are recommended and implemented as appropriate. Although RPA generally
provides advice only on the products previously listed, we reserve the right to offer advice
on any investment product that may be suitable for each client’s specific circumstances,
needs, goals, and objectives.
When RPA or RPA’s investment adviser representatives (“IARs”) provide investment advice
to you regarding your retirement plan account or individual retirement account, we are
fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act
and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with your interests, so we
operate under a special rule that requires us to act in your best interest and not put our
interest ahead of yours.
In providing this recommendation, we agree to:
Meet a professional standard of care when making investment recommendations
(give prudent advice);
Never put our financial interests ahead of yours when making recommendations
(give loyal advice);
Avoid misleading statements about conflicts of interest, fees, and investments;
Follow policies and procedures designed to ensure that we give advice that is in your
best interest;
Charge no more than is reasonable for our services;
Give you basic information about conflicts of interest; and
Deliver the Form CRS and Regulation Best Interest Disclosures as applicable prior to
or at the time of the recommendation.
RPA’s IARs schedule investment reviews at least annually to confirm that the underlying
portfolio allocation continues to reflect our clients’ overall situation, goals, and risk tolerance.
Additionally, we ask our clients to notify us immediately about any changes in their personal
circumstances that may affect their investment goals and objectives.
Retirement Plan Advisors’ PortfolioPlus
Retirement Plan Advisors’ PortfolioPlus is a discretionary fee-based active money
management solution available to participants in employer-sponsored retirement plans.
Depending on the retirement plan recordkeeper, RPA may use a subadvisor to develop
individual participant allocations.
PortfolioPlus is available to employer-sponsored retirement plans in conjunction with other
RPA plan-related services or as a stand-alone service.
PortfolioPlus clients are encouraged to contact either their RPA IAR or plan provider, as
appropriate, when changes occur in their financial situation or investment objectives. Clients
in this program receive quarterly updates and are not contacted individually for an annual
meeting.
Advisor-Directed Managed Accounts
RPA IARs provide customized portfolio management solutions based on a client’s individual
circumstances, risk tolerance, investment objectives, and time horizon on a discretionary
basis. The IAR will meet with the client at least annually to review personal circumstances
and investment objectives, and adjust the portfolio’s asset allocation as needed.
Co-Advisory Services
WealthPort
RPA participates, under a co-advisory relationship with Cambridge Investment Research
Advisors, Inc. (“CIRA”), in fee-based services sponsored through CIRA’s WealthPort Wrap
Programs. The wrap fee programs charge an inclusive fee, covering custodial, brokerage,
and investment advisory services. WealthPort Wrap Programs encompass the Advisor-
Directed Program and the Cambridge Asset Allocation Platform (“CAAP®”). All clients are
provided with the WealthPort Wrap Brochure before or at the time the client enters into this
program.
Advisor-Directed
RPA IARs provide customized portfolio management solutions based on a client’s
individual circumstances, risk tolerance, investment objectives, and time horizon on a
discretionary basis. The IAR will review the account, at least annually, to determine
that the agreed-upon model and/or strategist are still in line with the account’s stated
risk tolerance and time horizon. If personal circumstances or investment objectives
have changed, an account review with the client may be conducted in person or
virtually, on an agreed-upon basis.
Team-Directed
The Team-Directed program is a discretionary portfolio management solution in
which RPA serves as the portfolio strategist and manager for our IARs. RPA IARs
work with clients to identify an appropriate model portfolio(s) based on individual
circumstances, investment objectives, risk tolerance, and time horizon. Clients are
provided an RPA Investment Policy Statement (“IPS”) which confirms the investment
objective and time horizon as well as the model portfolio selected.
RPA’s Investment Committee regularly reviews the portfolios’ underlying investment
managers and asset allocation to ensure the portfolios remain in line with the stated
model risk and return objectives. The IAR will review the account at least annually to
confirm the agreed-upon model remains in line with the account’s stated risk
tolerance and time horizon. Client account reviews may be conducted in person or
virtually, on an agreed-upon basis
CAAP®
The CAAP® program is a discretionary portfolio management solution offering
access to multiple individual portfolio strategists. Each strategist offers a unique
approach to investing and may offer multiple model portfolios. RPA IARs work with
clients to identify an appropriate strategist(s) and model portfolio(s) based on
individual circumstances, investment objectives, risk tolerance, and time horizon.
Clients are provided an IPS which confirms the selected strategist(s) and model
portfolio(s), as well as the investment objective and time horizon.
The IAR will review the account, at least annually, to determine that the agreed-upon
model(s) and/or strategist(s) are still in line with the account’s stated risk tolerance
and time horizon. If personal circumstances or investment objectives have changed,
an account review with the client may be conducted in person or virtually, on an
agreed-upon basis.
Third-Party Money Management
RPA recommends outside third-party investment advisors to provide our clients with
additional investment management and advisory services. RPA does not receive
compensation directly from third-party investment advisors. However, when we recommend
that you utilize a third-party money manager, we may receive a percentage of the fee which
they charge you. This creates a conflict of interest as we have an incentive to recommend
managers with whom we have such arrangements.
If we recommend that you roll over your current retirement plan to an individual retirement
account (“IRA”) that is managed by us, and is subject to our asset-based investment
advisory fees, this is a conflict of interest because we have a financial incentive to
recommend that you move your IRA to us.
Institutional Client Services
Retirement Plan Consulting Services
RPA provides comprehensive consulting services, including plan design and investment
advice, to public sector defined contribution retirement plans. Our services may include:
Conducting a full plan review, including identifying desired plan design
Providing and maintaining an IPS for the plan
Conducting a Request for Proposal (“RFP”) for desired plan services
Overseeing a transition to a new plan recordkeeper, if applicable
Providing recommendations for the plan investment menu in accordance with the
IPS
Overseeing transition of the plan assets to the new menu and recordkeeper, if
applicable; the transition may include adding or deleting investment options and
mapping assets, as well as other actions needed to implement desired plan
enhancements
Monitoring the menu on an ongoing basis
Providing recommendations to remove and replace any investment options in the
menu that fail to meet the guidelines detailed in the IPS
Providing reports to the plan sponsor (annually, semi-annually, or quarterly)
3(21) Advisory Services
As a 3(21) advisor, RPA acts in a co-fiduciary role to provide ongoing monitoring and
investment menu due diligence for group retirement plan sponsors. Services offered include:
Providing recommendations for the plan investment menu in accordance with the
IPS
Monitoring the menu on an ongoing basis
Providing recommendations to remove and replace any investment options in the
menu that fail to meet the guidelines detailed in the IPS
Providing reports to the plan sponsor (annually, semi-annually, or quarterly)
3(38) Advisory Services
As a 3(38) advisor, RPA acts in a co-fiduciary role to provide ongoing monitoring and
investment menu due diligence for group retirement plan sponsors. As a 3(38) advisor, RPA
acts with discretion on the plan investment menu.
General overview of services offered:
Maintaining a customized plan IPS
Monitoring the menu on an ongoing basis
Removing and replacing any investment options in the menu that fail to meet the
guidelines detailed in the IPS
Providing written notice to the plan sponsor at least thirty (30) days prior to making
menu changes
Providing reports to the plan sponsor (annually, semi-annually, or quarterly)
Retirement Plan Advisors’ SponsorPlus
RPA’s SponsorPlus is an investment advisory program that provides 3(38) fiduciary services
to smaller group retirement plan sponsors. With the SponsorPlus service, RPA provides
clearly defined investment policies and regularly applies these policies to retirement plans
on behalf of plan sponsors. RPA works with the plan sponsors to meet their fiduciary
obligations.
With SponsorPlus, RPA provides:
An IPS to govern plan investment decisions
An initial investment menu selection to bring plan investment menus in line with
industry best practices
Ongoing monitoring and automatic investment menu updates
Pooled Employer Plans (“PEPs”)
RPA offers 3(38) fiduciary services to PEPs. RPA provides clearly defined investment
policies and regularly applies these policies to the PEP on behalf of the plan sponsor, which
may be the Pooled Plan Provider (“PPP”) or a single adopting employer. RPA also offers our
PortfolioPlus managed account services to individual PEP participants.
RPA IARs may serve as a non-discretionary 3(21) advisor to an adopting employer and
charge a fee. RPA IARs do not share in any compensation for RPA’s 3(38), PortfolioPlus, or
AMA fees related to the PEP.
Client-Tailored Services and Client-Imposed Restrictions
RPA offers the same suite of services to all of its clients. However, specific client financial
plans and their implementation are dependent upon the client’s goals or IPS, which outlines
each client’s current situation (income, tax levels, and risk tolerance levels) and is used to
construct a client-specific plan to aid in the selection of a portfolio that matches restrictions,
needs, and targets.
Clients may impose restrictions in investing in certain securities or types of securities in
accordance with their values or beliefs. However, if the restrictions prevent RPA from
properly servicing the client account, or if the restrictions would require RPA to deviate from
its standard suite of services, RPA reserves the right to end the relationship.
Assets Under Management
RPA has the following assets under management: