Strategies & Planning

The Investment Policy Statement – Roadmap to your Portfolio
By adding just a little structure to your approach, you can really supercharge your investment results and feel more empowered so you can relax during bumpy markets. The market actually behaves in a very predictable and consistent way – it is the response of investors to various conditions that is unpredictable and interferes with goals…read more here

Classy and Fabulous Investing
Time speeds by quickly, seemingly by design. Fashion Week is again in full swing, and the Fall 2013 collections feature deep, rich colors and sleek lines. Some things never go out of style, such as the basics of building a great portfolio…read more here

Published on


How to Invest with the Big Dogs – by Kathryn Schwartz
Whether you are an active trader following momentum trends revealed by a stock chart, or a long-term investor with a broadly diversified portfolio, you can hunt with the big dogs of Wall Street…read more here

The “invest right, live right” Investor Checklist
Like it or not, money affects just about every nook and cranny of your life. With the proliferation of stock market information, most people randomly stumble into investing, often lacking a detailed strategy or plan…read more here

© 2010-2017 Pawleys Investment Advisors, LLC.  All rights reserved.

Please click below for the Pawleys Workshops on retirement savings:

Retirement Workshop Button Personal Finance, Fibonacci’s Rabbits, and Compound Interest

Retirement Workshop Button Importance of Stock Ownership and How to Pick a Good Fund

Picture1 Asset Allocation and Diversification, Tax Deductions and Credits

Please feel free to e-mail your questions to! All inquiries and client information is kept strictly confidential.

purple flower

© 2010-2019 Pawleys Investment Advisors, LLC. All rights reserved.

Retirement Plan Structure

Business Retirement Plan Participant Workshops – Increase Employee Participation

The single best way for business owners to increase retirement plan participation is through employee engagement. You are an expert at engaging your staff in executing the work of your company. I can engage employees in your 401(k) by motivating your team to take control of their financial futures. Here is the outline to a three session program that I can deliver in-person or virtually: Company Retirement Plan Workshops from Pawleys Please e-mail or call today for additional information – I will do everything possible to be of assistance to you.

Avoid Being Top-Heavy by Increasing 401(k) Participation – Form 8800 Savers IRS Tax Credit

I help companies increase participation rates so owners can relax and not worry about plan testing failures. Please call me to learn how in-person workshops or webinars can help your employees get excited about saving for retirement. During 2006, there was a tiny tax code update as a part of the Pension Protection Act that many people are unaware of, and I think it is helpful to get younger people excited about saving for retirement. Starting early is a critical factor when it comes to saving for retirement, and I am passionate about helping younger people make great financial decisions. Here is a quick summary: •You must be at least 18, not enrolled as a full-time student at any time during the year, and not claimed as a dependent on another person’s tax return •Eligible Plans – IRA’s, Roth IRA’s, 401(k)’s, 403(b)’s, and 457 plans. •Adjusted Gross Income Limitations – must fall below income limits for 2012 of $28,750, head of household filers of $43,125 and joint filers of $57,500.

The credit can be as much as $1,000 for single filers and $2,000 for joint filers, and is in addition to any deduction that may be available. The IRS Form 8880 can be found here: Please consult a tax professional to see how this may apply as every one’s situation is unique and different.

© 2013-2017 Pawleys Investment Advisors, LLC. All rights reserved.

Tax Credit for New Retirement Plans – Form 8881 Small Business Pension IRS Tax Credit

Small business owners who establish pension plans may be eligible to receive an IRS tax credit to offset expenses incurred in establishing the plan. Pawleys Investment Advisors does not provide tax or legal advice, but over the years I have found that most business owners are unaware of this credit. Eligible plans include SEP IRA’s, SIMPLE IRA’s and qualified plans including 401(k) plans, profit-sharing plans, money-purchase plans and defined benefit plans. The annual credit is 50% of the first $1,000 in expenses, so it is limited to $500, and is available for 3 years. Qualified expenses include those incurred in establishing the plan, administrative fees, and costs to provide employee education. Employers may choose to claim the credit or use it as a deductible business expense. This credit is in addition to any tax deduction you may receive for making company contributions for your employees. The credit applies to companies with no more than 100 employees who have received at least $5,000 in compensation. Companies that qualify that later grow beyond 100 employees who receive at least $5,000 in compensation may be grandfathered, depending on the current tax code. The established plan must cover at least one non-highly compensated employee as defined by the IRS. Additionally, control-group aggregation rules apply, so be sure to consult with your tax and legal advisors or Third Party Administrator. If you established a plan, your advisor should have provided you with information regarding Form 8881 to discuss with your tax professional. If you have not yet established a retirement plan for your business, please call Pawleys Investment Advisors. You will be surprised about the relative ease and low-cost of setting up a new plan. It will help you better prepare for retirement and, if you have employees, help improve their satisfaction and better prepare them for retirement.

Click to access f8881.pdf

© 2012-2017 Pawleys Investment Advisors, LLC. All rights reserved.

How Simple is the SIMPLE? – IRS Form 5304 and 5305

For many employers with fewer than 100 employees, the easiest and most cost-effective way to offer retirement plan benefits is through the SIMPLE IRA. In the mid 1990’s, the SAR SEP or Salary Reduction Simplified Employee Pension Plan, was discontinued and replaced by the Savings Incentive Match Plan or SIMPLE. This plan enables employees with at least $5,000 in annual compensation to defer as much as $12,000 of pre-tax dollars. The employer has the choice to match $1:$1 up to 2% of compensation for all eligible employees or $1:$1 up to 3% of participating employee contributions. The one caveat, which is quite frankly confusing to me, is that the IRS imposes a 25% penalty for SIMPLE funds moved within 2 years of participation, even if the dollars are rolled into an IRA, with limited exception. Unlike many other plans, the SIMPLE does not require annual form 5500 filing or other paperwork filing with the IRS. Employers simply need to provide annual notification to employees of the plan details and administrative information. Each employee account is self-directed, so I have built plans which have basic investing education for employees as a key component.

Establishing a retirement plan is an important aspect of a solid employee retention program. It also provides a way to provide a meaningful positive impact on the financial futures of your staff and their families. Please call today to discuss how this fits your situation, you will be amazed at how easy it is to get started! 🙂 p.s. you will also be eligible for a tax credit during the first 3 years!

© 2012-2017 Pawleys Investment Advisors, LLC. All rights reserved.

Four Tips for 401(k) Fiduciaries

Business owners who provide retirement plans for their employees are responsible for adhering to ERISA (The Employee Retirement Income Security Act of 1974) guidelines. As popularity of pension plans has shifted from defined benefit plans to defined contribution plans, employers find themselves responsible to meet the minimum standards set forth by the act. The act does not dictate who must establish such plans, but it does delineate minimum requirements for those employers who do. The Department of Labor sets the standards for compliance and record keeping. Anyone who performs functions which relate to the administration or management of a retirement plan may be classified as a fiduciary if they exert discretion or control over the plan. Here are four quick tips for retirement plan fiduciaries:

1. Have a written plan document (Summary Plan Document or SPD), trustee services to custody assets, record keeping to monitor the flow of funds, and general plan information to provide to participants. If plan participants direct their own investments, be sure to provide them with sufficient information to make those decisions.

2. Identify fiduciaries and monitor responsibilities to ensure they are following the “prudent man” rule and acting in the best interest of the plan participants, following plan documents, diversifying plan investments, and paying only reasonable expenses. The new 2012 Fee Disclosure rules require additional transparency.

3. Be thorough in selecting service providers (Investment Advisors and Third Party Administrators or TPA’s). Due diligence is especially important if joining a Multiple Employer Plan, to ensure that the plan is solvent (check the DOL website for additional guidelines) and meets any plan structural requirements unique to your company.

4. Establish a monitoring system and, at a minimum, an annual comprehensive review of the plan structure, service providers, record keeping and participant education programs. Annual plan testing and filing requirements may vary, so check with your TPA. Be sure to check your plan versus any recent regulatory updates to ensure compliance.

401(k)’s and other business retirement plans offer a great vehicle for employers to help employees supplement their retirement savings. With this benefit comes added responsibility. By implementing a systematic process to hire the right partners, build a structurally compliant plan, select a list of quality diversified investment choices and provide employee education, business owners can better position themselves to meet their fiduciary obligations. Please contact me to inquire about how I can help you build a systematic process that will help you meet your required fiduciary standard of care.


© 2012-2017 Pawleys Investment Advisors, LLC. All rights reserved.

Control Group Affect Retirement Plan Structure and Testing Requirements

Business owners: many existing business retirement plans have some type of structural issue which needs to be corrected. One of the most common mistakes companies make when establishing a new 401(k) or other business retirement plan is failing to identify that a control group exists within the ownership of the company. Ownership of businesses can be complex, and directly affects how you are allowed to structure your business retirement plan. There are 3 ways in which control groups may exist: parent-subsidiary, brother-sister, and a combination of the two. Please see this link for important information from the IRS about control groups, and check with your CPA to determine if you have any type of control group relationship. Pawleys Investment Advisors is happy to coordinate with your tax professional and Third Party Administrator to conduct a comprehensive evaluation of your existing plan, or provide recommendations for the structuring and investment selection for a new plan. Often business owners act as the plan sponsor, so it is important to have the right team in place to support the fiduciary requirements (unlike broker dealers or registered representatives at the large national investment chains, Registered Investment Advisors can act as a fiduciary over IRA, 401(k) and other retirement assets). Improve the satisfaction of your employees and your preparedness for a Department of Labor audit!

Click to access epchd704.pdf

© 2012-2017 Pawleys Investment Advisors, LLC. All rights reserved.

Please feel free to e-mail your questions to! All inquiries and client information is kept strictly confidential.

Please feel free to e-mail your questions to!  All inquiries and client information is kept strictly confidential.

Please Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s