ED FERGUSON & ASSOCIATES, INC.
Pension Plan Design, Administration & Investments
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Financial planning consists of both Asset Accumulation and Risk Management strategies. Ed Ferguson & Associates, Inc. is dedicated to the principles of Modern Portfolio Theory as it seeks to minimzie an investor's risk while accomplishing the investor's goals.
Asset Accumulation strategies consider the accumulation objective, the annual commitment (ability) to add to the asset accumulation and the tax considerations of the annual addition, investment growth and asset liquidation at the time of distribution. These strategies help determine if the accumulation objective is obtainable and what the required rate of investment return is considering the annual additions and the time period available for accumulation.
Risk Management strategies consider the time period of accumulation, the time period for distribution, the investor's risk tolerance and the required rate of return. Portfolio diversification over several asset classes and utilizing specific asset allocations for the portfolio will minimize the portfolio's volatility (risk) while seeking to attain the portfolio's required rate of return.
While the cost of investing assets is an important consideration, the proper investment platform is not always the platform that has the lowest cost structure. Net investment rates of return, continuity of investment fund managers, rates of return when compared to portfolio risk, platform services and quality of services provided are just a few important factors that can off-set the consideration of cost. Ed Ferguson & Associates, Inc.is experienced in analyzing investment platforms and their applicability to each investors situation.
Retirement plan sponsors must consider platform services such as participant recordkeeping, participant access, portfolio diversification, portfolio stability, investment performance, enrollment material & support as well as platform expense. While daily recordkeeping and internet access are the platforms of the day, not all plans benefit sufficiently to justify the inherent costs of those platforms. Fully developed platforms with sophisticated participant enrollment packages and investment education programs bear the cost for these services that may or may not provide needed benefit to the plan.
Individual investors have income tax implications as an added consideration when choosing their investment platform. Individual Retirement Accounts (IRA's Roth IRA's and IRA rollovers), fixed and variable annuities, college savings plans (E-529), certificates of deposit (CD's), mutual funds and brokerage accounts are the primary investment platforms available to the individual investor. Each of these platforms have different investment and product expenses as well as different tax impact on the investor. While there is a "best" platform for each investor, no one platform is the best for every investor.
If you are interested in receiving more information about these different investment platforms and how they can benefit you, please visit the "Contact Us" page and send us an inquiry; or, if you prefer, you may call us at 317-843-0777. We would be pleased to visit with you at no charge or obligation to discuss your needs and our services.