You wouldn’t authorize a company to dive into your checking account at will to withdraw money for undisclosed “services rendered,” right?

“But that’s what many people are unwittingly doing with the retirement plans,” says financial advisor Philip Rousseaux, a member of the esteemed Million Dollar Round Table association’s exclusive Top of the Table forum for the world’s most successful financial services professionals.

“While a new law now requires disclosure of previously hidden fees applied to 401(k) plans, it’s up to you, or your financial advisor, to find and review that information and determine whether the fees are reasonable,” says Rousseaux, founder and president of Everest Wealth Management, Inc. (www.everestwm.com).

By some estimates, up to 90 percent of fees attached to retirement plans are hidden.
As of July 1, 2012, the new Department of Labor rule requires all hidden fees attached to retirement plans and mutual funds be disclosed to employers and employees.

“For many ‘average joes’ with 401(k) and 403(b) savings plans, disclosure hasn’t helped at all,” Rousseaux says. “The paperwork supplied can be so dense and full of jargon, they can’t make heads or tails of it. I’ve even heard some financial advisors say they’ve seen statements that were nearly impossible to read.”

Meanwhile, the Department of Labor is reportedly investigation 50 complaints of violations of the new rules.

Rousseaux offers these tips for examining and understanding retirement plan fees.

• Trading fees: Trading fees apply to mutual funds, which generally comprise more than half of a 401(k). These previously undisclosed fees occur are brokerage commissions that are charged to the plan holder every time a fund is traded. The charge is a percentage of the fund’s value usually ranging from less than 1 percent to less than 2 percent.  In some cases, trading fees can double the cost of the transaction. “If your funds are being frequently traded, you may be spending quite a bit on trading fees – in addition to the other fees associated with managing the fund,” Rousseaux says. “If you can’t determine whether the trading fees are reasonable, you should consult with an independent financial advisor.”

• Revenue sharing: These fees occur when mutual funds and other plan providers pay a third party for administrative services such as record-keeping, which the fund is expected to perform. These may be labeled “sub-transfer,” “agent/sub-TA” or “shareholder servicing” and they’re built in to the plan’s expense ratio, so it’s not a double charge. Again, the idea is to review these charges and ensure they seem reasonable.

• 12 b-1 fees: This term – named for the section in the regulation that allows for it – applies to marketing and distribution costs. They’re generally paid as commissions to brokers who service retirement plans and they also may be paid to non­investment professionals such as recordkeepers or insurance companies. Most mutual funds have share classes that provide for varying revenue amounts from 12b­1 fees.  Brokers and recordkeepers have an incentive to use funds with 12b­1 fees and to share classes with higher 12b­1 fees because they make more money.

Rousseaux notes that it’s also important to look at the expense ration for your plan, which should now be stated in dollars under terms of the new Labor Department regulation.

“Generally, the lower the ratio, the bigger the fund will grow,” he says.

If you find any of these fees are draining an unreasonable amount of your retirement savings, you might consider rolling the money into another savings plan, such as a Roth IRA or fixed-rate variable annuity, Rousseaux says.

About Philip Rousseaux

Philip Rousseaux is the founder and president of Everest Wealth Management and Everest Investment Advisors money management firm. A staunch advocate of objectivity in investment advice, he’s a member of the Million Dollar Round Table, the international association of independent advisors whose members are held to a rigid code of ethics. He is the co-author of “Climbing the Mountain to Financial Success” and co-hosts The Money Guys show on CBS Radio in various cities.  Philip received his bachelor’s in economics from Towson University and completed the Wharton School of Business’s Investment Strategies and Portfolio Management Executive Education Program.

Springtime is greener as remodeling gains speed

Remodeler optimism stronger than ever during first quarter

Des Plaines, Illinois, April 23, 2013—The National Association of the Remodeling Industry’s (NARI) first-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions is reaching new heights, as quarter-over-quarter increases are seen across all sub-components measuring remodeling activity.

As remodelers approach the busy season, overall current business conditions have seen steady increases since March of 2012, now at a statistically significant 5.97 rating compared with the 5.59 rating from one year before.

“Remodelers nationwide are not only experiencing increased activity right now, but many have a backlog of projects well into the fall,” says Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders, based in Drexel Hill, Pa. “This current condition is world’s away from March of last year and suggests that the recovery is beginning to gain speed.”

Growth indicators in the first quarter of 2013 are as follows:

• Current business conditions up 1.0 percent since last quarter
• Number of inquiries up 4.9 percent since last quarter
• Requests for bids up 5.2 percent since last quarter
• Conversion of bids to jobs up 1.1 percent since last quarter
• Value of jobs sold is up 0.2 percent since last quarter

Sharp increases in the number of inquiries and requests for bids point speak directly to an increase in consumer confidence, especially in housing.

“Homeowners are tired of waiting to make improvements—many have chosen to stay put—and better financial positioning has them actively approaching professionals to get work done and enhance long-term livability of the home,” O’Grady says.

More specifically, drivers of remodeling activity include needing improvements due to postponement of projects (83 percent reported this as a driver) and improving home prices with 59 percent reporting (an 8 percent jump from fourth quarter data).

Other significant contributors to overall activity:

• Certainty about the future was reported by 44 percent of respondents
• Economic growth was reported by 43 percent of respondents
• Low interest rates was reported by 42 percent of respondents
• Growth in stock market was reported by 39 percent of respondents

“We knew that several things had to turn around in order for business to get better, and NARI members are finally feeling a holistic economic recovery outside and inside the housing market,” O’Grady says.

Whereas two-thirds of remodelers forecasted the next three months positively in December of 2012, now 76 percent of remodelers believe there will be growth in the next three months. Only 7 percent of respondents reported declines in the near future.

To review the research in its entirety, please send your request to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

NARI is the source for homeowners seeking to hire a professional remodeling contractor. Members are full-time, dedicated remodelers who follow a strict code of ethics with high standards of honesty, integrity and responsibility.

Visit the NARI.org site to get tips on how to hire a remodeling professional and to search for NARI members in your area.

Click here to see an online version of this press release.

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About NARI: The National Association of the Remodeling Industry (NARI) is the only trade association dedicated solely to the remodeling industry.  The Association, which represents 7,000 member companies nationwide—comprised of 63,000 remodeling contractors— is “The Voice of the Remodeling Industry.”™ To learn more about membership, visit www.NARI.org or contact national headquarters, based in Des Plaines, Ill., at (847) 298-9200.

iBIO Report Shows Illinois at the Core of the Most Vibrant Bioscience Hub in the United States

CHICAGO – Governor Pat Quinn today announced that a new independent study has ranked Illinois at the top of the nation’s biotechnology industry, and the state is at the core of the most vibrant bioscience hub in the United States. Today’s announcement is part of Governor Quinn’s agenda to create jobs and drive Illinois’ economy forward. Citing “The Economic Engine of Biotechnology in Illinois,” a new report from iBIO conducted by Ernst & Young LLP, the announcement comes during the BIO Conference in Chicago.

“This report shows that Illinois is a national leader in biotechnology jobs and economic impact,” Governor Quinn said. “Public and private investments have fueled our strong track record of innovation and success in biotechnology. As this report makes clear, Illinois and the Midwest are well positioned for ongoing growth.”

The report demonstrates that Illinois stands out as a significant player in the biotechnology industry in three ways. First, Illinois is at the core of the most vibrant bioscience cluster in the United States; second, biotechnology is a critical component and driver of the state’s economy; and third, the state of Illinois is committed to fueling this growth and advancing the biotechnology industry.

“The Economic Engine of Biotechnology in Illinois” shows the Midwest Super Cluster, which includes Illinois and the surrounding eight-state region, surpasses California and the East Coast in biotechnology-related employment, number of establishments and research and development expenditures. Its four key findings are:

·         Within the Midwest Super Cluster there are more than 16,800 biotechnology establishments employing more than 377,900 people. By comparison, California has 7,500 biotechnology establishments that employ 230,000 people, and the East Coast cluster employs 253,000 among its approximately 7,100 biotechnology establishments.

·         The overall economic output of Illinois' biotechnology industry is more than $98.6 billion with 81,000 direct jobs and more than 3,500 biotechnology companies in the state. In fact, Illinois residents employed by biotechnology companies earn up to 91 percent more than the average Illinois resident. The biotechnology industry in Illinois has demonstrated the strongest revenue growth in recent years among all of the states analyzed in this study, an average annual growth of 13.3 percent.

·         During the past decade, the top seven universities in Illinois have steadily increased their research and development expenditures, creating new opportunities for biotech startups. Expenditures have nearly doubled since 2001, growing from $727 million to more than $1.3 billion.

·         The ability to secure early-stage funding is spurring innovation and growth among startup biotechnology companies in Illinois. Venture capital funding in Illinois has seen a 209 percent increase between 2009 and 2012.

Ernst & Young LLP conducted direct interviews with senior industry leaders throughout the Midwest region to create the report. Data was also gathered from reports by Battelle Memorial, information from the Bureau of Labor Statistics, the National Science Foundation, various university technology transfer offices, biotechnology organizations, publicly available data sources and reports, as well as proprietary databases. The nine-state Midwest Super Cluster includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio and Wisconsin.

The full report may be viewed at ibio.org/illinoisbiotechreport.

“Ernst & Young is committed to helping the Midwest become one of the top biotechnology communities in the world,” Ernst & Young’s Midwest Health Sciences Leader Jo Ellen Helmer said. “To succeed, our region must continue to invest in the industry, and increase collaboration and partnerships, as well as facilitate ongoing research, recruit the talent needed to ensure growth and emphasize the ease and ability to secure early-stage funding.”

iBIO, which commissioned the study, aims to make Illinois and the surrounding Midwest one of the world’s top life sciences centers, a great place to do business and a great place to grow new technology ventures. iBIO advocates for sound public policy at the local, state and federal levels; improves our region’s ability to create, attract and retain businesses; and orchestrates industry involvement to help restore America’s leadership in math and science education. To find out more about iBIO, please visit ibio.org.

The national Biotechnology Industry Organization named Governor Quinn “2011 Governor of the Year” at their international conference in Washington, D.C. Additionally, Illinois is home to several multinational bioscience companies, including  Abbott, Baxter, Takeda, Astellas, Valent BioSciences, Tate & Lyle, Hospira and Lundbeck. According to iBio, Illinois is home to more than 440 corporate R&D facilities and more than 200 academic, government, and nonprofit research institutions.

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