 | For many people, a significant portion of their retirement funds and overall wealth is tied in their 401(k) accounts. |
 | Few fully understand the choices offered under these accounts. |
 | Even fewer manage these accounts actively. A recent study found that only 7.3% of all 401(k) participants changed their allocations in 2021. |
 | Sounds familiar? Can you remember the last time you logged in? If these are large stores of your net worth, why would you treat them with less care than your other investments? |
Several studies have been conducted recently that discover the value of advisor-led 401(k) plans:
| Source | Advisor Added Value |
|---|---|
| Russell Investments | 4.83% |
| Envestnet PMC | 3% |
| Financial Engines | 3.32% |
The problem has always been that these accounts were held at corporate employers, and advisors typically weren’t able to manage them directly. Not anymore. Using a third-party fintech platform, we can now offer active portfolio management for these account types that can not be custodied at our brokerage partners:
- 401(k) Retirement Plans
- 403(b) Retirement Plans
- 457 Retirement Plans
- 529 College Savings Plans
- HSAs
- Variable Annuities
- Other held away accounts
How does it work?
- Your account will be created on the platform
- You will connect your held away account by logging into it
- The login information is encrypted and secured, and will not be available to anyone else including your advisor and the platform provider (similar to how personal software providers like Quicken and Mint.com work)
- Your advisor will then be able to review your positions, fund information and updates, and execute trades – everything you can except moving funds in or out
- These funds will be added to your total assets under management for the purposes of management fees, and we will even pay the platform fee
- In order to preserve tax-deferred value, the fees will be charged from your taxable accounts instead
