The Center for Due Diligence

CFDD Investment Commentary

2/24/2010--Fueled by stimulus spending, the economy may be positioned for a recovery, but sustainability requires private sector growth. The nation's economic structure has changed and meaningful job growth remains challenging. Millions remain out of work, out of savings and nearing the end of their unemployment benefits. The glut of foreclosed property remains, banks are not lending to small businesses and our "total" tax rate is at an all time high. Federal deficits have reached unprecedented levels and fueled by record public debt, the nation is more leveraged than ever before. In spite of a looming budgetary crisis of epic proportions, governability is at an all time low and long term fiscal mismanagement has limited our options. Given the no growth outlook, advisors must prioritize consolidation opportunities.

CFDD Retirement Plans Commentary

2/24/2010--ERISA 411 precludes those convicted of a variety of crimes and financial shortcomings from serving ERISA plans. Ironically, plan sponsors rarely perform advisor background checks. In addition to insurance policy reviews and discounts, the EAE Program will offer sponsors an "optional" background check service. While the sponsor pays for the outsourced service, the advisor must give their permission in advance. To correct inaccuracies, advisors will be provided with an advance copy of the report. In a no growth world, practice expansion can only come through targeted consolidation. Participating in consolidation requires a high level of expertise and an effective marketing strategy. Given that traditional marketing is no longer effective, the EAE Program will provide "expert" retirement plan advisors with the path to growth.