What Are Robo-Advisors? And Why Are So Many Financial Advisors Against Them?

I was having lunch with a buddy I hadn’t seen in years. After catching up on ‘whatever happened to old what’s his name?’ the conversation naturally turned to the stock market, investing in general and retirement planning.

Hey, if you take a CFP to lunch—and you’re buying—why not get a little free advice?

He was thinking about changing financial advisors. Things were OK—he felt like the firm he was currently with did a good enough job, but they were raising their annual fees and frankly he wondered if he was still getting a good deal.

The firm he’s currently with is known for it’s home cooking: selling their own brand of under-performing mutual funds. In fact, about five years ago some employees sued the firm for stuffing it’s own 401(k) with mutual funds run by the company’s investment arm.  That’s when you know a financial advisory firm has a problem: when its advisors sue it for doing a lousy job of running its own retirement plan.

robo advisorI told my friend, “You should consider a robo-advisor.”

He looked at me as if I had just told him to get financial advice from a Star Wars character.

“What’s a robo-advisor?”

He almost looked like he was in pain.

So I told him. Robo-advisors are computer programs that put together an investment mix and monitor and adjust it automatically.

It’s doing what a financial advisor says he will do—but rarely actually does.

Here’s the thing. You hire a financial advisor and you think, “OK, he’ll keep an eye on things and make sure I stay on track for retirement.” But most of the time, advisors will steer you to some “model allocation program” made up of mutual funds or exchange-traded funds and charge you something along the line of a 1% management fee. And that’s in addition to the expenses built in to the funds or ETFs.

These programs are called “managed accounts” by the big investment and brokerage firms.

And that’s exactly what a robo-advisor is. A managed allocation program—without the 1% additional fee. Most of the leading robo-advisors—like Vanguard’s Personal Advisor Services or Betterment—charge 0.30% or less. And their mutual funds and ETFs have lower internal expenses than the average (or worse) mutual funds a lot of financial advisors recommend.

Vanguard claims the management fee difference alone can add over $90,000 of value to a portfolio over 20 years. Human financial advisors worry that robo-advisors will cut into their profits. And they should.

So my buddy took all this in and frankly seemed totally unimpressed. In fact, he sent me a text later asking about some investment plan that he had found online. A do-it-yourself allocation of mutual funds that he was apparently considering.

Maybe he’ll try to manage his own investments, or even stay with his current advisory firm. It doesn’t seem likely that he’ll go with the low-cost, machine-made investment option.

Perhaps I didn’t do a very good job of explaining robo-advisors to him.

So maybe he’ll offer to buy me lunch again.

Why Retirement Savers Should Be Hoping for a Lasting Market Crash

Good news, retirement savers: The market’s crashing. Finally. Last week, the Dow dropped more than 1,000 points. It did so again this morning, before recovering most of the loss by midday. The financial reporters were chasing their tails faster than ever. “The market is down! What does it mean?!” And then, hours later: “The market is recovering! What does it mean?!”

What working Americans saving for retirement really need is a market crash that lasts.

A little behind saving for retirement? You need a grizzly bear market

If you’ve been diligently saving for retirement, say in your 401(k) or IRA, you’ve been buying into a rising market for the past six and half years. And that’s fine, but you could really use a good, solid break in the market. A deep sustained bear market.

That’s when your retirement savings gets turbocharged. You’ll be buying the market at a discount for the first time in years. With each paycheck-deducted contribution into your retirement savings, you’ll be snapping up shares at a faster than ever pace. You deserve more bang for your buck. With a really horrible stock market, you’ll finally be getting caught up a bit with your life-after-work nest egg.

Come on bear market, stay ugly

The thing is, the market just hasn’t committed to being really bad yet. But maybe this is finally our time. We just need it to go down and stay there for a while. Bear markets only last for an average of 14 months – while bull markets stretch on and on; for an average of more than three years (43 months), according to Putnam research.

Imagine if we could buy into a discounted market for a year or two – and then hang onto a raging bull run into retirement!

Don’t just get our hopes up

Maybe I’m just being overly optimistic – hoping for a really big, sustained drop in the markets. But if you walk on the sunny side of the street like I do, you might want to crank up those salary deferrals into you 401(k), max out your IRA contributions and put some of that cash to work in your taxable brokerage account.

And then hope for the worst.

Is Your Retirement Safe – Or Is Your 401k Betting on Uber?

Your retirement security likely depends on that mysterious investment machine known as the 401(k). There are a lot of moving parts in that thing, and most of us have only a vague idea of how it works. Somehow, we put money in and the machine invests in tiny slivers of ownership and loans of hundreds of companies. Hopefully, great companies like Apple, Netflix, Google and Bristol-Myers Squibb.

But some investors may be surprised to learn that their 401(k) might also be making bets on the likes of SpaceX, Zynga, Snapchat, Airbnb, Uber and Pinterest. Big players in the retirement plan industry — like T. Rowe Price, Fidelity and BlackRock — have all bought into tech startups, through special syndicate deals that allow them exclusive access to such privately-held companies.

Should you be worried, or thrilled? Peter Fisher, managing partner of Human Investing, based in a suburb of Portland, says perhaps a little of both.

“The participant, hopefully, should be investing in something that is what they thought they were investing in,” Fisher told MainStreet. “So, if you’re going to put a fund that has a bunch of startup stuff, or venture capital, or non-publicly traded stuff, or thinly traded stuff — in your ‘safe box’ — shame on you. But if this is something that is in a specialty category, I think it could be a huge opportunity for some people that don’t have access to that sort of thing. As long as it’s communicated the right way.”

Though Fisher’s firm is a passive investment advocate, preferring index funds to actively-managed funds, he thinks there is a place for such portfolio sweeteners. “Do I think these types of investments should be considered? Certainly. Absolutely.”

Joe Lucey, a financial planner in St. Louis Park, Minnesota, says it’s often not the particular stock that’s the problem, it’s how much of it you own.

“The ability to own some of the startup companies is probably not something that I’d have a problem with, but on the other hand, often times we’ll see employees that have company stock in publicly-traded companies — everything from Target to 3M — where all of a sudden they end up having all of one company’s stock in their 401k,” Lucey says. “So whether or not it’s a startup company or a Fortune 1000 company, if (investors) aren’t well diversified, that can always cause problems or concerns.”

As for the Uber holdings in your 401(k), they are likely to be a very thin slice. Fidelity says the crowd-sourced taxi service comprises less than a 1% share of its mutual funds. But don’t think the shares are held in just the company’s Contrafund or other tech-leaning mutual funds. Uber was the biggest winner in the Fidelity Blue Chip Growth Fund during the last quarter of 2014. Yes, the Blue Chip fund. Blue chips are the benchmark of quality on Wall Street, represented by the 30 stocks of the Dow Jones Industrial Average.

But Uber is far from a blue chip stock. Fidelity says it’s an “out of benchmark” holding.

“Not all of the names we invest in are blue-chip companies — some are companies that we believe have blue-chip potential down the road,” says Fidelity’s quarterly fund review.

And there’s the challenge. How to know exactly what your 401(k) is investing in. The mutual fund names alone obviously provide few clues. And mutual funds can allocate up to 15% of their holdings in private companies and other illiquid securities. Investors need to uncover the facts and see where their retirement money is really being invested.

Lucey admits the online tools available to the average 401(k) investor often don’t drill down to that level of detail. Instead, he recommends 401(k) investors take the initiative to find out what the specific holdings are in their retirement plan — by asking the plan administrator. He suspects few consumers will make such an effort.

Fisher’s firm uses Morningstar technology, integrated with a participant’s 401(k) account, to provide just that kind of investment transparency.

“With a push of a button, they can run a cross-section report on all their holdings. They can see, ‘OK, I own 2.12% of Apple across the three mutual funds that I own,’” he says. The firm uses the analytic tools to advise 401(k) participants for company clients who sign up for the service.

Though minor holdings in tech start-up stocks may not be a problem for the great majority of retirement investors, Lucey says there is one challenge many savers face:

“A lot of consumers are taking far more risk in their 401(k)s,” he says. “Last year would be a good example. The S&P 500 was up 13-14%, so those investors that are focusing their portfolio in the top 500 S&P indices may think they get 500 companies that represent a fully diversified portfolio but yet they are exposing themselves to unrecognized risk by not diversifying across all asset classes — (such as) adding some international investments, bonds and what have you. Nobody liked what their portfolios did in 2008, (but) we’re seeing clients coming into our office back to the level of risk that they were at right before the last correction.”

And Human Investing’s Fisher adds another couple of high priorities investors should be most concerned with:

“The 401k investor should worry about, first and foremost, whether they’re doing their part in creating a plan to defer enough for retirement, based on the life they want to live at some point down the road,” he says. “We’ve seen it time and time again; that’s the biggest thing they can control. The second thing is making sure that you hold the decision makers in your company accountable for the plan that you’ve got in place. In particular, costs. But the war is not going to be won — from a cost standpoint — from a single participant. It’s going to be a group of participants that rise and say, ‘Hey listen, our 401k plan is a piece of garbage and we’re done. We’re not going to do this anymore.'”

Stress Test Your 401k for Fees and Performance

Kendrick Wakeman, CEO of Boston-based FinMason believes individual American investors face a grave enemy: the pie chart. You often see them on the top of your brokerage or 401(k) statement. Wakeman says these charts represent analysis that Wall Street feels is really useful but MainStreet feels is completely useless. 

“There are somewhere between 3-6 billion asset allocation pie charts generated in this country every year and the collective effect is almost nothing,” Wakeman told the Money Pivot. ‘We did a survey, a random sample of 1,000 investors, and two-thirds of them couldn’t derive any information about their portfolio through a pie chart.”

Helping ‘accidental investors’

He says the problem is, investors can’t derive a sense of risk or return by looking at an asset allocation pie chart. And that goes for geographic analysis charts, industry breakdowns and other investment segmentation data graphs. An investor simply wants to know: how much can I expect to make from my holdings, and perhaps even more importantly — how much do I stand to lose? 

“With 401(k)s now a lot of people are basically accidental investors,” Wakeman says. “They’re being forced to invest — that’s not what they would be doing normally with their life.”

In January, his investor education company launched “Finspector,” a free online tool that analyzes 6 million investments, including over 24,000 mutual funds, based on scenario analysis. 

“It’s basically just telling people, in plain language, how their portfolio should perform under different scenarios — or future possible scenarios,” Wakeman explains. “For example, we’ll show them ‘this is how your portfolio probably behaves in a strong market, this is how it probably behaves in a weak market. This is kind of what you would expect in a normal market — and this is how your portfolio should behave in a crash.'”

He contends that having an investor face the possible losses of their specific portfolio in a worst-case scenario helps them understand the trade-off between risk and reward. By reducing the downside risk in investments holdings, investors come to realize that they are also minimizing potential gains.

“As you de-risk your portfolio, your upside disappears,” Wakeman says. The tool displays all of the potential outcomes of an investor’s holdings on one page: from best-case to worst. “It’s all about trade-offs. And so what ends up happening is, if they decide they want to take their crash scenario to zero (risk), we also show their estimated retirement savings and they’ll see that drop precipitously. Now they understand the difference between risk and return in a very tangible way.”

Users can enter individual holdings into the system, or allow it to import positions from their investment accounts, as well as compare holdings to sample portfolios of varying degrees of risk. Seeing the impact of good and bad future markets on the relative return of your investments — as well as the projected dollar value of your retirement savings — is a real wakeup call for many investors, he says. But while the tool analyzes the specific investment holdings of a user, it does not make recommendations. 

“Our premise is, there are a lot of people you can go to for advice. We help explain your portfolio to you in an independent, unbiased way. We won’t tell you what you should buy or shouldn’t buy, we can’t — we don’t know anything about you, we don’t even know your name,” Wakeman says. “What people really need is a tool to help them understand their portfolios and understand the advice that they’re getting — from their broker, from their brother-in-law, from an online tool with their 401(k). It’s not so much a lack of advice out there, it’s a lack of confidence over which advice is right and which is not right.”

The fee factor

With confidence that your portfolio is properly positioned with investments that are right for your risk appetite, there is one more matter to attend to: the issue of fees.

Claiming to help navigate the murky waters of financial charges is an online tool aiming to be the “Waze of investment fees.” In fact, one of the co-founders, Uri Levine, sold Waze, the crowdsourced navigation app, to Google for $1.1 billion in 2013. Now he and three other partners, including CEO Yoav Zurel, are looking to map out financial fee roadblocks.

“No one knows how much in fees they are paying,” Zurel told MainStreet. “Basically, if we don’t know what we are paying, this means we are already paying too much.”

Zurel says investors in America paid about $600 billion in financial services fees last year. And many times, these charges are expressed in a percentage rather than in easy-to-understand dollar amounts. Not knowing how much you pay is one thing, but nearly half of working Baby Boomers in a recent survey believed they didn’t pay any fees at all in their retirement account. 

“The 401(k) industry last year took $35 billion in fees — and even more shocking, the average American household will pay $155,000 in 401(k) fees,” Zurel says. “So you think it’s free but it actually costs you like about (the cost of) a house in most of the U.S. It’s crazy.”

FeeX analyzes the expenses imbedded in a portfolio, expresses them in dollars — and then shows the impact of compounding those fees over a user’s working lifetime. 

“The fact that you are paying 1% this year, and 1% next year, and 1% three years from now — so 30 years from now we’re talking about one-third of your savings that will get lost to fees,” Zurel  says.

The tool not only exposes the fees but how to reduce them, by showing investments similar to those in your account but with lower fees. If your investment holding is a good performer with low fees, Zurel says the tool will conclude, ‘Great job, you have the best fund available.’ Fund recommendations made by FeeX are not compensated so the opinion offered can remain objective —  though Zurel says fund managers have approached them wanting such endorsements.

“We need someone, or some tool, just to reassure us that either we are paying a lot and there are easy ways to pay less or that everything is great and they can continue on with their life!” he adds.

Zurel says FeeX has already garnered about 25,000 users since its U.S. launch.

Why Financial Education Doesn’t Work – and How to Change That

So you go to get the oil changed in your car. You wait a few minutes and finally the guy with the name patch on his shirt saunters up and throws a grease-covered manual at you and says, “Here. Do it yourself.”

That’s a bit like what’s happening to investors these days. Here’s your 401(k) and IRA, a few pie charts, a menu of investments and good luck to you. Now, with a little – or a lot – of time and interest we could all change our own oil, or invest for retirement, but it’s going to take a bit more than a brochure and an employer-sponsored “educational” meeting.

Financial education is simply not working. Here’s why, and how we can fix it.

Some “education” is a thinly-veiled sales pitch

10W-30 or 20W-50 — conventional or synthetic oil? 401(k) or IRA — traditional or Roth? Whether it’s an oil change or an investment, we can’t be an expert at everything. Yet, money is such a critical factor in our life, and our life after work, that we — the doctors, dancers and desk-bound of the world – are somehow expected to learn all we need to know in a 30-minute annual 401(k) workshop.

And some of those educational meetings may be little more than a smooth hustle. In a 2011 U.S. Government Accountability Office report to the House of Representatives the GAO said: “Although investment education is defined as generalized investment information, providers may highlight their own funds as examples of investments available within asset classes even though they may have a financial interest in the funds.”

The report went on to note that participants often perceive education as investment advice, and such conflicts of interest could result in the selection of investments with higher fees or mediocre performance — ultimately leading to “a significant reduction in retirement savings over a worker’s career.”

In December, FINRA, the self-regulatory authority of U.S. securities firms, voiced the same conflict of interest issue regarding “educational” information and meetings guiding investors to rollover 401(k) assets to IRAs.

The “largest failure ever of adult education”

“Today, 401(k) education is the largest failure ever of adult education,” says Dennis Ackley, a retirement education consultant in San Diego, Calif. “But don’t blame adult education experts. They were not involved in it.” He says financial instruction is often taught by workshop leaders and executives who aren’t well versed in adult learning theory.

“Naturally, people in the financial industry are ‘numbers oriented.’ Yet many participants who attend 401(k) meetings are innumerate,” Ackley says. “If the instructional concepts do not resonate with employees — and if they are not becoming personally motivated to learn and to save substantial amounts to reach their personally meaningful goals — then after three decades of trying, it’s time to stop using content experts to teach the basics.”

Ackley believes the financial industry should recruit professional teachers and instructional designers, using proven adult education principles, to build interesting and meaningful learning experiences.

“Without clearly stated outcomes and competencies, how can the ‘educators’ create a targeted curriculum? And how can they measure their results?” he asks.

Fear in the faces of investors

Chad Parks is the founder of The Online 401(k), a web-based retirement plan provider. He says he has seen a good deal of fear in the faces of investors.

“I have said this many times: It’s a shame I had to get a Master’s Degree in Finance to get the basics of a financial education,” Parks says. “It used to be when you worked for a company you were offered a pension plan, and because most of the decisions were made for you, you had peace-of-mind that you were covered in your golden years. Social Security was a kickstand.”

But as companies abandoned pensions in favor of 401(k)s, almost all of the burden and responsibility shifted to the employees, he says.

“I have seen the deep-rooted emotional fear from this audience — not their fault — but rather the fault of our very immature industry,” he says. “The challenge with 401(k)s and retirement in general, is to overcome that deep-rooted fear of giving up today, what is going to provide for your tomorrow. We need to address not only the logical side of people, but more importantly, the emotional side that holds the purse strings.”

Parks proposes a financial education process that brings an end to jargon and incorporates full transparency. “Financial crisis, housing crisis, pension crisis, the fine print crisis. This is not something we fix with a calculator and a cool advertisement. It needs to be an honest conversation that doesn’t take a translator to understand,” he says.

“Just in time” financial education

Perhaps the most scientific analysis of why financial education has simply not worked comes from a trio of researchers who studied 168 papers covering 201 studies of financial literacy and its relationship to financial behavior.

Daniel Fernandes of the Catholic University of Portugal; John Lynch Jr., of the University of Colorado-Boulder; and Richard Netemeyer of the University of Virginia found that financial education accounted for just a fractional (0.1%) change in behavior. The impact was even less for lower income investors, who arguably need the most help of all.

Fernandes and his associates determined that financial education, like other education, “decays over time.” Even many hours of education have negligible effects on behavior 20 months or more from the time of instruction.

The researchers surmised that perhaps some of the failure might be attributed to, as Dennis Ackley offered earlier, teacher training. They also suggested that education effectiveness might be improved by teaching “soft skills” such as planning, proactivity and a willingness to take investment risk, rather than the more technical facets of compound interest, bonds and the rest.

But possibly the most interesting proposal extended by the academics was “just in time” financial education. Because of our tendency to forget – or at least forget to apply – lessons learned in the past to current decisions being made, the professors said that “there must be some immediate opportunity to enact and put to use knowledge or it will decay. Moreover, without a ready expected use in the near future, motivation to learn and to elaborate may suffer.”

In other words, when an investor is ready to retire, they should be able to access objective, jargonless, emotionally-inspired, conflict-of-interest free education. In a world of immediate gratification and instant information, “just in time” financial education may be exactly what we need.

Photo credit: wbaiv

How to Catch Up on Retirement Savings in Your 50s

Originally published on Investor Place

You ever notice the runners crossing the finish line after a marathon? Hands on their hips, red-faced and gasping for air. Or, hunched over with their hands on their knees, kind of wobbling a bit.

That’s how a lot of 50+ workers are feeling these days when it comes to the race to retirement. Except, you haven’t crossed the finish line – you can see it, but aren’t quite sure you’ll make it, right? It’s OK. Take a few deep breaths and pace yourself. If you’re a bit behind in your retirement savings and feel like you’re getting lapped, we’re going to show you some shortcuts to get you back on track.

Transition to your retirement budget now

Consider transitioning your living expenses to retirement mode now. You know you’ll have to live on less when you quit working so it’s a good idea to start now while you can still choose your budget battles.

Think you might want to live on the lake in retirement? Consider downsizing the big family house that you’ve been rattling around in and find that lakeside cabin fixer-upper. If the commute is still manageable for your current job, you could sell your big house, buy the retirement hideaway and invest the remaining equity from the sale.

Reducing debt is a good idea, too. That 18% APR credit card interest you’re paying is dragging down your financial resources. Dedicate yourself to paying off the credit cards, and then put them in a drawer and let them gather dust for a while. Don’t close the accounts, because that could ding your credit score. Once those balances are erased, you can plow that extra cash into your retirement savings.

Still driving two vehicles? Maybe you can get by with just one. Sell the extra vehicle and all the money you’ll save on payments, insurance, gas and maintenance can go to your nest egg. Premium cable television, the landline you never use, membership dues you pay for services long forgotten: every bit adds up.

If you want to get serious about saving for retirement and living a worry-free life-after-work, reduce your living expenses by half. Yes, half.

Kick-in the catch-up contributions

If you’re 50 or over you can make up for a bit of lost time with catch-up contributions to your tax-deferred retirement accounts.

That means you can put in your regular maximum deferral contribution to your retirement plan (like a 401(k), Traditional or Roth IRA, SIMPLE, SEP or 403(b) plan) and then kick-in an additional amount, which varies by account. The IRS has all of the details available online — or talk it over with a trusted advisor.

Start a new investment account

If you’ve really committed to a super-charged retirement savings plan, you’ll find that you can quickly reach the limit of what can be set aside in your tax-deferred accounts, such as your 401(k) or IRA. Now you need to dedicate funds to a taxable investment account. If you haven’t already started an emergency savings account, this new brokerage account can serve double duty for a while. That means you’ll first stash cash, or cash-equivalent investments, into the account amounting to six months income. Once that life-raft is inflated you can invest the rest in a suitable mixture of equity and fixed-income investments.

Now, set-up an automatic draft from your current wages to feed this shiny new account. Have each month’s deposit dedicated to buy-in equally into your mix of investments.

Generate a side income

Finally, you may want to investigate starting a small business or income-producing endeavor on the side. Moonlighting can be fun, and it might be something you’ll grow now to continue during retirement, as an income supplement to your retirement assets.

Follow your passions. Love arts and crafts? Start an Etsy account and sell your wares online. Or combine your hobby with a bit of travel and sell your goods at local arts fairs and trade shows. Online sales can be extremely lucrative, especially if dedicated to niche products. Rather than compete with Wal-Mart and Best Buy, consider selling products of local and regional interest, or items related to a favorite past time that you are totally enamored with.

Virtually any hobby can be monetized: photography, writing, sewing – even fishing!  Plow any profits you generate into your investment and retirement accounts.

Moonlighting can also mean finding a second job. Again, finding something that you may want to continue doing during retirement is best.

Committing to your retirement lifestyle – prior to retirement – can help you define what you want the rest, and the best, of your life to be.

Photo: bernat… via photopin cc

Most Generous 401(k) Plans in America

Thank your employer for offering a 401(k) retirement plan. It’s a big deal. And if you work for one of the companies listed below, you’re receiving the most generous benefits available in the U.S. BrightScope, the financial benefits research firm, says these companies “value setting their employees up for a strong financial future.”

The research firm examined plan vesting schedules, eligibility periods and all contributions to the plan made by the company for the sole benefit of the plan’s participants. Companies in professional services, science and technical fields dominated, representing half of all the plans listed. 

Six of the top 10 plans allow immediate vesting: workers are fully vested from the first day of employment. The average account balance for plans on the “most generous companies” list is $470,014 – much higher than the average balance of all plans within the BrightScope system ($99,061). 

The average amount a company contributes to each plan on the list is $31,181, compared to the plan average of $4,184. And the average participation rate is 96.49% — compared to an average of 85.03%.

 “Generosity is an important means for companies to recruit and retain top employees,” says Brooks Herman, head of data and research at BrightScope. “Its importance is exemplified by the fact that half of the companies on this list have been on one or more other BrightScope rankings this year, and several more have been featured in years past.” 

The 30 Most Generous Companies are: 

1. Sullivan & Cromwell LLP – Retirement Plan of Sullivan & Cromwell LLP 

2. North American Partners in Anesthesia, LLP – North American Partners in Anesthesia, LLP Profit Sharing Plan 

3. Oregon Anesthesiology Group, P.C. – Oregon Anesthesiology Group, P.C. 401(k) Profit Sharing Plan 

4. Frontier Refining & Marketing Inc. – Frontier Retirement Savings Plan 

5. O’Melveny & Myers LLP – O’Melveny & Myers LLP Keogh Plan 

6. Zeta Associates – Zeta Associates Incorporated Savings Plan 

7. Shearman & Sterling LLP – Shearman & Sterling LLP Partners Retirement Plan 

8. Anesthesia Service Medical Group, Inc. – Anesthesia Service Medical Group, Inc. 401(k) Profit Sharing Plan Trust 

9. Cravath, Swaine & Moore LLP – Retirement Plan of Cravath, Swaine & Moore LLP 

10. Bryan Cave LLP – Bryan Cave LLP Retirement Plan for Partners 

11. Debevoise & Plimpton LLP- Retirement Plan for Lawyers of Debevoise & Plimpton LLP 

12. Kay Scholer LLP – Kaye Scholer LLP Retirement Plan 

13. Skadden, Arps, Slate, Meagher & Flom, LLP – Skadden, Arps, Slate, Meagher & Flom Retirement Plan 

14. Deloitte LLP – Deloitte Profit Sharing Plan 

15. United States Member Clubs of the National Hockey League – National Hockey League Pension Plan for Players of United States Member Clubs 

16. Ernst & Young U.S. LLP – Ernst & Young Partnership Retirement Plan 

17. Weil, Gotshal & Manges, LLP – Weil, Gotshal & Manges Partners’ Target Pension Plan 

18. Simpson Thacher & Bartlett LLP – Simpson Thacher & Bartlett LLP Supplemental Profit Sharing Plan for Partners 

19. Jones Day – Jones Day Retirement Plan 

20. Jennison Associates LLC – Jennison Associates Savings Plan

21. Duane Morris LLP – Duane Morris Retirement Plan 

22. Dodge & Cox – Dodge & Cox Profit Sharing Plan & Trust

23. Sutter Medical Group, Inc. – Sutter Medical Group 401(k) Profit Sharing Plan 

24. United Parcel Service Company – UPS/IPA Defined Contribution Money Purchase Pension Plan 

25. Gould Medical Group, Inc. – Gould Medical Group, Inc. 401(k) Profit Sharing Plan and Trust 

26. Garland Industries, Inc. – The Garland Industries, Inc. Employee Stock Ownership Plan & Trust 

27. Tufts Medical Center Physicians Organization, Inc. – Tufts Medical Center Physicians Organization, Inc. 401(a) Retirement Plan 

28. McMaster-Carr Supply Company – McMaster-Carr Supply Company Profit Sharing Trust  

29. National Basketball Association – NBA-NBPA 401K Savings Plan 

30. Northwest Permanente, P.C. – Northwest Permanente, P.C. Retirement Plan Money Purchase Pension Aspect