Business Solutions, Inc.
401(k) PLAN

• Slavic401k.com is a Third Party Administrator,
Record-keeper, NASD Registered Broker Dealer, and
Registered Investment Advisor.
• The Quality Business Solutions 401k plan Trust
Account is established directly with the Mutual Fund companies that make up the investment platform:
Vanguard, Fidelity, T.Rowe Price, Federated,
American Funds etc.
• The funds in the plan are traded through the Fidelity
Institutional Funds Network.

CEFEX CERTIFICATION

How are you planning your retirement
Social Security
Social Security is now perceived as a fragile and inadequate solution which will have to be substantially supplemented.
Individual Savings Programs
Most people, despite their good intentions, do not save on a regular basis and their investments do not increase as projected.
Employer Sponsored Retirement Plans
These plans offer the most logical, efficient way for employees to save for the future.

Social Security
1950: 6.46 Workers Supporting each retiree.
2000: 4.48 Workers Supporting each retiree.
2030: 2.46 Workers Supporting each retiree.
2005 Budget: Inflows of $668 Billion with outflows of $534
Billion. The surplus of $134 Billion is spent elsewhere!
2014: There will be more outflows than inflows, and will create deficits of more than $600 billion per year.
Source: Cato Institute

Life Expectancy
2000 IRS Life Expectancy Table
Less Than
Less Than Average
Less Than Average
Average Life Expectancy at Age 65 = 20 Years
Average Life Expectancy
Above Average Life Expectancy
Above Average Life Expectancy
Above Average Life Expectancy
50%
Ave.
50%
65 70 75 80 85 90 95 100
You Have to Plan to Live
Longer Than Average

401(K) Plan Advantage
Payroll Deduction
Pre-Tax Contributions
Tax-Deferred Growth
“Uncle Sam doesn’t offer many gifts. This is one. If someone offered you free money, would you refuse it?
Probably not. But that’s just what your doing if you don’t contribute to your 401(k).”
CNN Money.com

The Math
After Tax Pre-Tax
Contribution
Taxes 28%
$ 1,000 $ 1,000
-280 0
Net Contribution 720 1,000
Account Growth 58 80
Tax on Interest
Net gain
Total Accumulated
-16
42
$ 762
0
80
$1,080
*Hypothetical Return for illustrative purposes only. Your actual return will vary and may be lower. You pay income taxes when you withdrawal funds at retirement.

Long Term Investment
RETIREMENT
At age 59½ you can take your money out without a 10% penalty
TERMINATE EMPLOYMENT
Cash-out with a 10% penalty or rollover to another qualified plan or IRA with no penalty
DEATH or DISABILITY
10% Penalty Waived

Participants Loans
Borrow 50% of Vested Account Balance
$1,000 Minimum
$50,000 Maximum
Repay Principal & Interest Thought Payroll Deduction
Continue Participation

Financial Hardship Withdrawals
Purchase Home
Avoid an Eviction or Foreclosure
Catastrophic Medical Expenses
College Education Expenses

American Funds (R4)
Growth Fund of America
Reimbursed to
Participant




Expense Ratio
12(b)-1
Sub TA
.77%
.25%
.15%
Net Expense .37%
Substantially lower cost investment choices
Better overall performance
Advisor bias eliminated
Compliance

Participant Plan Fees
Annual Administration Fee: $39
Plan’s Assets
$0 – 1M
$1M – 2M
$2M – 3M
$Over 3M
Asset Fee
0.95%
0.60%
0.40%
0.30%
Managed Portfolios available for an additional 0.25% management fee

Mutual Funds the 401(k) plan Investment of
Choice

The Quality Business Solutions 401(k) Plan

The
401(k) Plan
The funds are reviewed annually for performance and suitability by the Quality Business Solutions
Investment Committee with the advice of the Plan’s
Registered Investment Advisor.
All mutual fund revenue is reimbursed to participants.
Aggressive, Moderate and Conservative participant portfolios.
Investment advice is available to all participants.

Long Term Performance
1 Year Return
Dow Jones Industrial Average (INDEX)

Long Term Performance
All Data
Dow Jones Industrial Average (INDEX)

Long Term Performance
1 Year
Nasdaq Composite Index (NASDAQ GM)

Long Term Performance
All Data
Nasdaq Composite Index (NASDAQ GM)

Long Term Performance
1 Year
Dow Jones Wilshire 5000 Composite Index (INDEX)

Long Term Performance
All Data
Dow Jones Wilshire 5000 Composite Index (INDEX)

The basic principle of risk and return
Greater return potential= greater risk
The longer the time frame, the more risk you can take
Diversify to reduce risk
Very conservative investments have the risk that they may not keep up with inflation
When planning for your retirement, a good rule of thumb is that the more growth you want to achieve, the more risk you must generally assume.

Controlling Risk
Investment Strategy
A study by Gibson Capital Management found that a diversified portfolio split evenly among four different asset types did better over the long run with less risk than any one of the assets classes separately. The diversified portfolio had 25% allocated to each asset class and covered the 26 years between 1972 and 1997(Sun Sentinel 5/23/99).
Number of years with
The biggest return
Number of years
With a loss
Number of years with
Return over 20%
Standard deviation
(risk measure)
Average compounded
Return
S&P 500
4
5
11
16
13%
International
7
6
10
22
13%
Reits
10
4
10
16
14%
Commodities
5
6
10
23
12%
Diversified
Portfolio
0
6
11
10
14%

Some realities of investing…
No one knows which sector will be the best (or worst) performer in the coming years.
Trying to time the market is usually futile.
By the time many individual investors decide to overweight one sector, it is often too late.
Best strategy is to use asset allocation: a balanced mix of all different asset classes, and rebalance annually.
Take the mystery and emotion out of investing, stay focused on the long term.

The slavic401k Market Horizon
Specialty
Investments
Foreign
Global
Small/Med
Domestic
High Risk
Bonds
Money Market
Large
Domestic
Low Risk
T. Rowe Price New Era
American Funds Capital World G & I R4
T. Rowe Price Mid Cap Growth
North Track NYSE ArcaTech 100
Fidelity Adv Diversified International A
Vanguard Mid Cap Index
BlackRock Health Sciences Svc
Hancock Classic Value
Third Avenue Value
Vanguard Total International Stock Index
Vanguard European Stock Index
TCW Value Opportunities I
Vanguard Total Stock Market Index
Vanguard Small Cap Growth Index
SSgA S&P Index 500
Bridgeway Ultra-Small Company Market
Vanguard Total Bond Market Index
Vanguard Short-Term Fed.
Vanguard Prime Money Market
Vanguard Inflation Protected Securities

Trailing Period Returns 12/31/2006
Fund Name
BlackRock Health Sciences Svc
T. Rowe Price New Era
Vanguard REIT Index
North Track NYSE Arca Tech 100 Index A
Vanguard European Stock Index
Vanguard Total International Stock Index
Fidelity Adv Diversified International A
American Funds Capital World G & I R4
American Funds New Perspective R4
FundID YTD
SHISX 8.31%
1yr
8.31%
3yr
0.00%
5yr
0.00%
10yr
0.00%
Category
Specialty-Health
PRNEX 17.00% 17.00% 25.50% 19.79% 13.16% Specialty-Natural Res
VGSIX 35.07% 35.07% 25.49% 22.70% 14.18% Specialty-Real Estate
PPTIX 4.14% 4.14% 7.22% 4.22% 12.89% Specialty-Technology
VEURX 33.12% 33.12% 20.69% 14.88% 10.58%
VGTSX 26.64% 26.64% 20.93% 16.08% 7.78%
FDVAX 16.60% 16.60% 18.20% 16.16% 0.00%
RWIEX 22.23% 22.23% 18.69% 0.00% 0.00%
RNPEX 19.87% 19.87% 15.08% 11.84% 11.91%
Europe Stock
Foreign Large Blend
Foreign Large Growth
World Stock
World Stock
Bridgeway Ultra-Small Company Market
Vanguard Small Cap Growth Index
TCW Value Opportunities I
Third Avenue Value
Vanguard Mid Cap Index
T. Rowe Price Mid Cap Growth
BRSIX 11.48% 11.48% 11.70% 21.27% 0.00%
VISGX 11.95% 11.95% 12.18% 11.28% 0.00%
TGVOX 12.90% 12.90% 9.94% 7.57% 0.00%
TAVFX 14.69% 14.69% 19.15% 14.49% 13.50%
VIMSX 13.60% 13.60% 15.92% 12.28% 0.00%
RPMGX 6.79% 6.79% 13.23% 9.59% 11.63%
Neuberger Berman Partners Adv
SSgA S&P Index 500
NBPBX 12.84% 12.84% 16.34% 9.82% 8.42%
SVSPX 15.60% 15.60% 10.26% 6.01% 8.24%
Vanguard Total Stock Market Index VTSMX 15.51% 15.51% 11.26% 7.42% 8.57%
American Funds Growth Fund of America R4 RGAEX 10.94% 10.94% 12.37% 8.01% 12.94%
Hancock Classic Value PZFVX 16.54% 16.54% 13.16% 13.08% 12.84%
Vanguard Inflation Protected Securities
Vanguard Intermediate Bond Index
Vanguard Total Bond Market Index
Vanguard Short-Term Fed.
Vanguard Prime Money Market
Small Blend
Small Growth
Mid-Cap Blend
Mid-Cap Blend
Mid-Cap Blend
Mid-Cap Growth
Large Blend
Large Blend
Large Blend
Large Growth
Large Value
VIPSX 0.43% 0.43% 3.71% 7.04% 0.00% Inflation-Protected Bond
VBIIX 3.91% 3.91% 3.62% 5.43% 6.49% Intermediate-Term Bond
VBMFX 4.27% 4.27% 3.63% 4.61% 5.96% Intermediate-Term Bond
VSGBX 4.32% 4.32% 2.48% 3.39% 5.02%
VMMXX 4.88% 4.88% 2.99% 2.30% 3.77%
Short Government
Net Expense Ratio
1.64%
0.69%
0.24%
0.69%
0.27%
0.31%
1.02%
0.50%
0.47%
0.57%
0.23%
0.92%
0.85%
0.22%
0.80%
1.00%
0.09%
0.19%
0.35%
0.96%
0.20%
0.18%
0.20%
0.20%
0.30%

Optional Pre-Allocated Portfolios available to make investing easy
Aggressive Portfolio
Moderate Portfolio
Conservative Portfolio

Pre-Allocated Portfolios
AGGRESSIVE
2007
Allocation
Vanguard Total Stock Market Index
Fidelity Diversified International
Vanguard Short Term Federal
T. Rowe Price New Asia
35%
20%
20%
10%
Money Market
T. Rowe Price New Era
Vanguard REIT
0%
15%
0%
Weighted Return 100%
S&P 500
MODERATE
2007
Allocation
Vanguard Total Stock Market Index
Fidelity Diversified International
Vanguard Short Term Federal
T. Rowe Price New Asia
25%
20%
35%
10%
Money Market
T. Rowe Price New Era
Vanguard REIT
0%
10%
0%
Weighted Return 100%
S&P 500
CONSERVATIVE
Vanguard Total Stock Market Index
Fidelity Diversified International
Vanguard Short Term Federal
T. Rowe Price New Asia
Money Market
T. Rowe Price New Era
Vanguard REIT
2007
Allocation
15%
15%
30%
5%
30%
5%
0%
Weighted Return 100%
S&P 500
2006
3.90%
3.27%
1.08%
5.42%
0.00%
2.55%
0.00%
15.97%
15.80%
2006
3.12%
3.27%
1.72%
3.61%
0.00%
1.70%
0.00%
13.18%
15.80%
2006
2.34%
2.46%
1.29%
1.81%
1.46%
0.85%
0.00%
9.96%
15.80%
2005 2004 2003 2002
1.65%
5.70%
0.46%
0.00%
4.30%
5.60%
0.33%
0.00%
12.87% -10.04%
12.92% -6.72%
0.13%
0.00%
0.60%
0.00%
0.00%
2.99%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00% 3.74% 5.14% 0.99%
10.55% 13.72% 30.80% -15.42%
4.91% 10.88% 28.67% -22.10%
Net
Expense
0.03%
0.20%
0.04%
0.11%
0.00%
0.10%
0.00%
0.48%
2005 2004 2003 2002
Net
Expense
2005
0.71%
2.85%
0.55%
0.00%
0.90%
1.49%
0.59%
6.84%
4.91%
0.94%
4.75%
0.64%
0.00%
2.15%
4.67%
0.58%
0.00%
11.44% -8.92%
10.77% -5.60%
0.32%
0.00%
1.50%
0.00%
0.00%
4.48%
0.00%
2.36%
0.00%
0.00%
0.00%
0.00%
0.59% 3.74% 3.43% 0.66%
11.15% 13.25% 25.71% -12.61%
4.91% 10.88% 28.67% -22.10%
0.02%
0.20%
0.07%
0.11%
0.00%
0.07%
0.00%
0.47%
2004 2003 2002
2.15%
2.80%
0.66%
0.00%
0.14%
0.00%
2.62%
5.72%
8.61%
0.36%
0.00%
0.14%
0.00%
2.40%
-4.46%
-4.48%
1.68%
0.00%
0.20%
0.00%
0.46%
8.12% 16.98% -6.85%
10.88% 28.67% -22.10%
Net
Expense
0.01%
0.15%
0.06%
0.05%
0.09%
0.03%
0.00%
0.40%

Internet Enabled

The Employers Resource 401(k) Plan
A weekly Friday e-mail is sent to participants with account balances as of Thursday night and a brief description of the week’s market activities.

Enrolling In The Plan

Personal Information

Indicate Contribution Percentage

Select Investments

Name a Beneficiary

Sign the Form
You may call slavic401k.com or speak to your
Investment Advisor if you need help. Fund prospectuses are also available at www.slavic401k.com.