MEET THE ERISA NERD HIMSELF!

The ERISA Nerd was created out of the 2008 Financial crisis!

Kevin started in the financial industry when was he was only 24 years old, back in 1997!

He decided that he would become a “Roth IRA Expert” since he would have equal footing with every other financial advisor in the country. As the Roth IRA was not “born” until January 1st, 1998.

Ten years later, he was forced into becoming a “held away” 401(k) expert and ERISA Nerd.

This is why . . .

On September 15th, 2008 both Merrill Lynch and Lehman Brothers were on the verge of bankruptcy. The government arranged for a “buyout” (bailout) of Merrill by Bank of America, but allowed for Lehman Brothers to file bankruptcy. A few days later, AIG was on the brink of bankruptcy and the government decided to come in and start “bailing out” many of the banks.

The American financial system was on the brink of failure.

Stocks, bonds and cash were all losing money.

People were scared.

Uncertainty and panic took over.

Kevin’s clients started asking him for help on how to manage their 401(k) accounts.

They were scared and they were not getting any advice. Kevin knew it was difficult to advise someone on their employer’s plan, as every plan is different. The employer chooses the investment options for their employees. And there is no reliable database of investment options for “held away” investment options.

To make matters even more complicated, Kevin knew that there are strict rules (from the DOL) and law (ERISA) that govern “held away” private sector plans.

So, he purchased every book on ERISA for financial advisors (there are not many) and printed out all of the ERISA law. He read the book and the law cover to cover.

He created a written process on how he wanted to (compliantly) advise his clients and showed it to his Broker/Dealer (B/D). They approved his process and he called his new service 401(k) Confidence.

His 401(k) Confidence business was rapidly growing and so was the amount of time required to deliver ERISA compliant advice. So, he showed his manual, ERISA Compliant process, to his friend Mark, who was a software developer and asked him to codify the process.

Mark told him, “if you can label it, I can automate it”.

And the rest is history.

Together, Mark and Kevin created the first ERISA compliant software that can overlay any financial firm’s asset allocation strategies over any employer’s fund options and deliver ERISA compliant advice with a few clicks of the mouse.

They created an “Internet Only” SEC Registered Investment Advisory (RIA) firm powered by their proprietary technology.

Just like with the Roth IRA, Kevin was ahead of his time.

Since George W Bush, every presidential administration has been trying to modernize and strengthen the 401(k), ERISA law and the DOL Rules.

Kevin is voracious reader of all things ERISA and often writes and speaks about how ERISA intersects with the investment advisory industry.

He proudly refers to himself as an ERISA Nerd and thinks that ERISA done properly is an advantage for every independent investment adviser in the country!