Programs

The Hawaii Prosperity Plan (HIPP) is a brand new 401(k) investment platform managed by Kobo Wealth, Matthew D. Hutcheson, LLC, Sustain Hawaii and Charles Schwab (as custodian). This is a unique 401(k) platform that is extremely timely in light of what is happening in the markets and Hawaii’s economy.

The objectives are as follows:

1) To provide a very professionally managed, low-cost 401(k) plan to ALL of Hawaii’s businesses. It will be the only 401(k) plan in Hawaii managed exclusively by independent fiduciaries (Kobo and Matthew Hutcheson, the U.S. Congressional expert on 401(k) matters. HIPP will provide full fee disclosure and should drop the average cost of a plan by at least 1% annually. As we want all companies to be able to participate, there are little to no setup costs or costs to transfer plans into HIPP.

2) To provide professionally designed managed portfolios to take the guess work out of investing for plan participants. They will only need to select the proper managed account (conservative, moderate, growth, etc.) We will also provide Socially Responsible Investment (SRI) managed accounts upon request.

3) To greatly reduce the fiduciary risk to companies sponsoring a 401(k) plan (by virtue of using independent fiduciaries to run the plan).

4) To stimulate the Hawaiian economy. This is critical and is what makes this plan so very unique. We will offer a collective trust fund on our platform that will invest in emerging businesses in Hawaii. This will be the first time ever that rank and file employees will be able to play a critical role in providing much needed capital to Hawaii’s businesses. We view this as essential as the current credit crunch could have a profound impact on our islands. This vehicle could provide tens of millions of dollars back into Hawaii’s businesses and allow for all employees to become owners via their retirement plan. The collective trust will likely have investments focusing on alternative energy companies. In our view, this is where future job creation in Hawaii will come from.

5) Lastly, there is an entrepreneur’s component that will allow entrepreneurs to use their individual 401k savings to purchase an existing business without incurring taxes or the standard 10% penalty. Again, we view this as critical in regards to the credit crisis.

There is a tremendous amount of fear and anxiety in the capital markets and in the minds and hearts of investors. This new platform can play a critical role in helping our economy become less dependent on tourism, less dependent on imported goods and fuel and will help to spur job creation. HIPP seeks to provide hope and a vision for our economy and for the retirement savings of ALL Hawaii’s employees.