Account Overview

WASI’s Self Directed/Self Managed Account is designed to provide greater flexibility to your retirement planning. It may be used to receive current deposits through your payroll system as may be required, as a "roll-over" account that can receive subsequent deposits, as direct-deposit IRA or as a single sum IRA, 401(a) transfer account. The account is established as an independent self-directed custodial account that complies with the status of the tax payer, i.e., 403(b)(7) for employees of not-for-profit organizations, 401(k) for employees of for-profit organizations, 457 deferred compensation plan rollovers for city, county, state or political sub-division employees, or 408(a) IRA, ROTH/IRA, and SEP IRA accounts for individual use to receive annual deposits or "roll-overs".

Funds deposited directly into the account through salary reduction receive favorable Federal and State tax treatment:

As market conditions or financial objectives change, accounts may be invested and re-invested to suit changing financial requirements. There is no minimum or maximum number of times that you may change investments during the year. The account allows for investment and re-investment without the need to establish a new custodial account. This offers the account holder the ability to freely invest and re-invest in the entire mutual fund industry without restrictions or requirements to transfer to change investments.

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Investment Management Services

Western Annuity Services, Inc. (WASI) has provided retirement planning services since 1976. With the Investment Managed account program, WASI has organized a retirement program that allows funds within an individuals account to move freely between investments. To accomplish this, WASI recommends mutual funds that have no "front loads" or "back end loads" (redemption fees). We can concentrate on market conditions as the primary focus when restructuring investments. All account investing and re-investing is based purely on the economics of the investment. If a mutual fund does not meet pre-determined expectations, investment monies may be shifted free of commission considerations.

WASI continuously researches the mutual fund industry to locate funds that have no fees associated with their purchase or redemption, and generally we look for a 10% annual return over the last 12 months and a 10% compounded annual return over the past 5 years (excluding bond funds). Fund manager tenure is considered as well as the specific investments of the fund under review. Funds selected have met WASI’s requirements for investment return, no-fee acquisition and redemption, fund manager(s) tenure and evaluation by independent fund rating organizations.

We consider retirement objectives to be preservation of capital and growth. They are established initially to provide tax advantages as well as for retirement purposes. WASI also knows that accounts can be used during employment years as financial tools to assist in selective expenses as well as sources of capital for home purchase. WASI manages account on an individual basis and structures them to fill present financial needs as well as providing for future retirement income.

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Fees and Costs

WASI assesses an annual account advisory fee of the greater of $50.00 or 1.5% of the first $100,000,plus 1.25% of the next $150,000 and 1.0% of the account value over $250,000, calculated and paid at the end of each three month period. Fees are billed to your account on a quarterly basis at 1/4 of the annual fee, e.g. 0.375% for accounts under $100,000.00 in value. In addition to fees charged by WASI, there will be Custodial Account charges on an annual basis. Average Custodial Account charge typically amount to $95.00 per year. There may be additional fees charged by the account custodian for certain activities.

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Client Services

1. Assist the client in the establishment of an account with a suitable custodian that is in compliance with the Internal Revenue Service Code.
2. Initially, and on an annual basis, review clients financial circumstances to determine the most appropriate annual deposit level for the account selected for the current tax year.
3. Assist the client in determining the most appropriate account structure based on current job status, age, financial circumstances, current needs, years to anticipated retirement, or date that funds may be required for use during the work career, and to continually update this information and make appropriate adjustments when needed.
4. Complete all required IRC calculations to determine legal deposit maximums and complete all required enrollment or transfer forms for employer and custodian to properly institute and operate the account.
5. Complete all forms required to initiate and complete all transfers or exchanges from other accounts.
6. Assist the client in mandatory distributions calculations, partial withdrawals, total withdrawals, loans and/or other changes requiring document preparation and submission to various entities.
7. Provide competent sales and administrative staff to assist the client in any activity related to their account.
8. Provide an adequate choice of investment alternatives to facilitate the proper operation of the account.

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Client Disclosure

Western Annuity Services, Inc. (WASI) may from time to time have a conflict of interest with regard to recommendations made to clients in its capacity as an Investment Advisor. While it is WASI’s intention to avoid any conflicts, we realize that, on occasion conflicts may arise due to compensation arrangements connected to advisory services in addition to advisory fees, other financial industry activities or affiliations or participation of interest in client transactions. In the event these conflicts arise, the client will be notified specifically, any conflicts are listed in the ADV part II, that is given to every client when account is established.

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Tax Regulations

Tax dollars and the tax structure affect your current income, your investments and ultimately will affect your retirement income. Retirement tax regulations are complex and often change annually. How much you can save? What are account deposit maximums? What are the minimums? How do I determine where in the tax rules I fit? How is your money applied? Can you access it when you need it and what are the various tax implications? WASI guides each client through the retirement tax maze with the most current tax regulations and advise.

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