Helping Participants become Self Sufficient in Retirement

KISC exists primarily for the participants. The investment industry is highly regulated and some seek even more regulation. KISC believes in the ethics of doing what is right because it is the right thing to do – not because the regulations require it. When there is a lot of money at stake, a lot of creative people will work within the regulations for their benefit, not necessarily that of the participant.

KISC uses the Qualified Retirement Plan platform to help participants. In this way, we can structure a program that is rewarding and cost efficient. Efficiency is critical.

87 / 13 Phenommena

87% of ultimate investment returns rely on participant behavior!

“Did you know that most equity mutual fund investors tend to underperform the S&P 500? . . . The annual performance of the S&P between 1995 and 2014 was 9.85% while the average performance of an equity fund investor was just 5.19%. The biggest explanation, by far, for investor return being so much lower than the S&P is bad investor behavior, as saving and investing behavior account for 87% of portfolio growth.” Kaplan Financial Education March 22, 2019

KISC believes an investment structure that minimizes the impact of participant emotions can have a significant impact on long term investment returns.

Fiduciaries are Ultimately Responsible

Are you a Fiduciary? Have you accepted your duties and responsibilities? Do you document your actions?

Fiduciaries are not responsible for investment returns. They are responsible to make sure their plan participants have access to appropriate investments and that their funds are prudently cared for at all levels.

KISC can act as a Co-Fiduciary or Fiduciary defined by ERISA §3(21) or §3(38). In this capacity, KISC shares or takes duties and responsibilities of the Plan Fiduciary. This accountability mandates KISC’s recommendations consider the Participants’ interest.

Revitalize Your Qualified Retirement Plan

  • Review Fiduciary Duties and Responsibilities
  • Assess Plan Success against Plan Purpose
  • Review Plan Documents
  • Review Plan Expenses (Explicit, Implicit, Possibility of Undisclosed)
  • Review Plan Risks
  • Review Investment Menu
  • Review Conflicts of Interest



Nudge Your Employees

Study Behavioral Economics

Incorporate Behavioral Finance


KISC - Neither Smoke Nor Mirrors

The Financial Industry is highly regulated. A Fiduciary might conclude the industry is highly regulated as a result of inappropriate past industry actions. An Adviser might take advantage of its client using “special” or custom funds, proprietary benchmarks, undisclosed Implicit Fees (or legal kickbacks), or a complex investment structure.

Fiduciaries need full information to assess and then make decisions based on their assessment.

Regarding investments, if we assume that over a long time horizon, quality funds have similar returns, then there are three ways an Adviser helps Participants achieve prudent maximum investment results.

  1. Minimize Emotional Investment Reactions
  2. Allow only Prudent Explicit and Implicit Fees
  3. Manage Plan Risk Exposure

KISC has no conflicts of interest to influence its Plan Structure recommendations, which minimize emotional investment reactions. KISC receives only Explicit, Asset Based Fees. The combination of this approach provides some Plan and Fiduciary protection.

Review KISC’s Sample Contract and ADV in the Documents tab of this site.

Understand Details

A 1% difference in annual investment returns over a 40 year time horizon might create a participant fund balance difference of 30%. The Fiduciary needs to understand that if the participant did not receive the assets, who did and further how were participant assets siphoned away?

One percent difference in returns may result from unknown or undisclosed Implicit Fees. How is a Fiduciary to know? Which adviser can the Fiduciary trust?

  1. Study your adviser’s ADV. Do they indicate they accept fees other than Explicit (like Revenue Sharing)?
  2. Study the organization’s corporate structure. A simple structure can’t hide sophisticated compensation schemes. Corporate owners may not have the same disclosure requirements. Such structures may indicate alternative forms of receiving undisclosed compensation.
  3. A Fiduciary can protect their participants’ and Plan’s interest by requesting the adviser sign a Full Disclosure letter (review KISC’s in the Documents Tab of this site) indicating the adviser has fully disclosed all of the compensation related to the Plan to all of the adviser’s owners.

The Details are a Fiduciary’s responsibility!

KISC, LLC IARD# 286634 is registered as an investment adviser in Colorado. Such registration does not imply a certain level of skill or training.

Current Form ADV Parts 2A and 2B, which provides information about the qualifications and business practices of KISC, LLC, is available for download under the Documents and Articles tab.