Designing Your Plan

Our Synergistic Process

Retirement Plan Optimization


Synergy means that the sum equals more than the parts. Our integrated process will provide you Synergy and help you manage a cost-efficient retirement plan solution that is customized to fit your objectives and helps your employees invest in their future.

Synergy Financial Management, LLC (SFM) partners with you as both, an independent SEC registered investment advisor, and as an independent retirement plan advocate, to save you time and money. You focus on running your business and we will focus on helping you manage your fiduciary duty to the plan.

1. Understanding Your Goals

Making the right decisions

Is your company’s retirement plan satisfying the needs of your business and employees?

At Synergy, we know that one size does not fit all when it comes to retirement plans.

Your company is unique, and so are your company’s retirement needs. By thoroughly understanding your goals and objectives,  we are better positioned to help you and your employees make the most of your 401(k) retirement plan. Here are a few questions that will help us tailor a 401(k) plan to fit your company’s individual needs.

  • Would highly compensated employees contribute more if they were able?
  • Have you had to make corrective distributions or contributions in the past?
  • Do you want to benefit the owners or officers or all employees?
  • How much would you like to save each year?
  • Do your employees want to participate in the plan?


2. Investigate Plan Providers

Understanding your options

– Is your company’s 401(k) retirement plan bundled or unbundled?

– Are your TPA and recording keeping services provided separately?

– Is your custodian open source or is it limited in services?

Are all the Fees reasonable?

Synergy will help you independently analyze the various plan provider structures and will make recommendations that are aligned with your company’s objectives. Since we are independent, we are objective as to which retirement plan structure and/or provider you prefer. We are capable and happy to work with most all of the retirement plan platforms.


3. Craft Your Plan

Custom Investment Solution

Synergy provides efficient, diversified and proprietary investment models that are easy for participants to understand and choose from. These models are commonly referred to as asset allocation models.

We call our asset allocation models semi-passive, because they are a mix of passive and active management styles. We believe our client’s long-term portfolio performance is enhanced by this blended approach.

Our five custom, semi-passive strategies seek beta, plus alpha (which is derived from our proprietary allocation optimization process). We refer to this as a “BETA Plus” portfolio or an “Allocation Alpha” strategy.

Our strategy highlights:

  • Modern Portfolio Theory
  • Reducing Negative Compounding (volatility drag)
  • Managing risk
  • Custom benchmarking
  • Automatic rebalancing
  • Top down research
  • Pooled investments (Exchange traded funds (ETFs) if available, & Mutual funds)

Additionally, we provide participants with a professionally selected and monitored list of investment choices for all risk profiles. This enables eligible employees to build their own investment strategies if they choose not to follow one of the Synergy models. The list of optional investments can be as short or exhaustive as you instruct us. In addition, if you elect to do so, we can even include individual stocks and bonds as investment choices.

Portfolio Management After the investment blueprint (IB) is completed, we turn to building your portfolio. Our goal is to design custom portfolio strategies to minimize your probability of loss while maximizing your probability of achieving your investment objectives. We achieve this by executing a disciplined portfolio construction process. Based on the specifics of each client’s situation, we provide exposure to an appropriate mix of traditional, core investment strategies as well as non-traditional assets when suitable. We also seek to provide diversification within each asset class , across sectors, industries and countries.

Reporting As we dynamically monitor your portfolio in the ever changing investment and geopolitical environment, we take pride in our ability to report and communicate how your portfolio is doing along the way. Further, we will make the necessary changes in your portfolio to keep you on track. This communication will take various forms including quarterly performance reports, monthly account statements and periodic market and economic updates.


Conservative Model The conservative range is designed for the cautious investor, one with a low risk tolerance and/or a short time horizon. It is targeted toward the investor seeking investment stability and liquidity from investable assets. The main objective of the individual in the conservative risk range is to preserve capital while providing income. Fluctuations in the values of portfolios within this range are minor.

Moderately Conservative Model The moderately conservative risk range is appropriate for the investor who seeks both modest capital appreciation and income from his or her portfolio. This investor will have either a moderate time horizon or a slightly higher risk tolerance than the most conservative investor in the previous risk range. While this range is still designed to preserve the investor’s capital, fluctuations in the values of portfolios may occur from year to year.

Moderate Model This range will best suit the investor who seeks relatively stable growth from investable assets offset by a low level of income. An investor in the moderate risk range will have a higher tolerance for risk and/or a longer time horizon than either of the previous investors. The main objective of an individual within this range is to achieve steady portfolio growth while limiting fluctuations to less than those of the overall stock markets.

Moderately Aggressive Model The moderately aggressive risk range is designed for investors with a relatively high tolerance for risk and a longer time horizon. These investors have little need for current income and seek above-average growth from investable assets. The main objective of this risk range is capital appreciation, and its investors should be able to tolerate moderate fluctuations in their portfolio values.

Aggressive Model This range is appropriate for investors who have both a high tolerance for risk and a long investment time horizon. The main objective of the aggressive risk range is to provide high growth for the investor’s assets without providing current income. Portfolios in this range may have substantial fluctuations in value from year to year, making this category unsuitable for those who do not have an extended investment horizon.

4. Stay On Course

Dynamic Monitoring & Adjustment

Synergy will help you and your participants stay on course by annually reviewing your goals and objectives, and throughout the year with quarterly investment review meetings. Our communication focuses on helping plan participants become better prepared for retirement.

Monitoring To remain consistent with the asset allocation guidelines established by the Investment Blueprints, we will review the Portfolio and each asset class in which the Portfolio is invested. If the actual weighting differs from the target weighting by an unacceptable amount from the recommended weighting, we will rebalance the Portfolio back to the recommended weighting.

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