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Dynamic Options To Help Employees Plan For The Future

The Contractors Plan works directly with Nationwide and Transamerica insurance companies for our retirement products' investments options. The specific investment funds made available are professionally selected and monitored by the corporate trustee, American National Bank of Texas (ANBTX). ANBTX was established in 1875 and has provided trust services since 1927. As a national bank, it is subject to the U.S. Office of the Comptroller of the Currency for oversight and standards. ANBTX serves as a discretionary trustee, whereas most corporate trustees only provide "directed" trust services, where the real liability for investment selection falls to you, the plan sponsor.

The Contractors Plan offers a participant-directed or trustee-directed investment approach. You can choose the one that is right for your employees and for the company.

Trustee-Directed Plans:
With a trustee-directed plan, investments are chosen by ANBTX rather than the participants. This reduces the overhead associated with employee education and company compliance with the extensive set of regulations that comes with participant-directed plans. Rather than expecting employees in the plan to be investment savvy or to try to educate them on the best approach to investing for retirement, this is taken care of by the trust retirement group at ANBTX, who have over 100 combined years of experience with retirement planning and investment.

Participant-Directed Plans:
While there are advantages for trustee-directed plans, participant-directed plans are very popular. The investment lineup is established by ANBTX, but the final choice of specific investment funds are made by the employees.

The Contractors Plan offers two primary options for participant-directed plan investments:

  • Target-Date Funds — The target-date fund lineup consists of managed investment funds that "target" an employee's expected retirement date. Currently these range from 2010 to 2050, and go from lower risk/volatility to higher, the younger the employee. In addition, this set of options includes a target "income" fund that is managed very conservatively to avoid major losses during retirement years, but has some upside potential even during retirement. The target date funds are managed by Manning & Napier, a highly regarded investment advisor.
  • Lifestyle Funds — The lifestyle funds offer four Manning & Napier funds with varying expected returns, risk and volatility, so that participants may choose the plan that best suits their retirement planning needs given their current age and risk tolerance. The funds range from conservative to aggressive investment styles.

Both platforms offer several "traditional" funds with specific investments and objectives, for example large cap or small cap U.S. stock funds, to round out the options available in the core fund lineup.

Ready to see how The Contractors Plan can help you?