#6. What are managed accounts?
Managed accounts and index mutual funds are the foundation of Chernoff Diamond’s innovative new retirement investing approach. Managed accounts are similar to target-date retirement funds which allow employees to make investments based primarily on their age and when they expect to retire. Most 401(k) plans on the market have some component of a target-date fund lineup and despite their popularity, they do have some major drawbacks including costly fees and participants’ inability to choose the best target-date fund for their particular needs.
Index Mutual Fund Managed Accounts
Our use of index mutual funds and managed accounts are professionally managed investment allocations constructed in-house to provide a superior investment vehicle for employers and their employees. Our index fund-based managed account benefits include:
- Guidance in face-to-face meetings with Chernoff Diamond Retirement Plan Services professionals and your employees
- Specified asset allocation and simplified lowest cost fund lineups
- Individualized managed accounts are based on individual’s age and not on projected retirement date
- Additional elections are available for conservative or aggressive target risk options
Not only does our innovative managed account retirement investment approach centered on index mutual funds have the ability to lower costs for plan sponsors and participants — it also minimizes employers’ fiduciary liability and associated risks.
To learn more about our managed accounts approach to retirement investing contact one of our retirement plan consultants today.
Up Next in our Series: #7 401(k) fees — what you should know
This information is intended for educational purposes only and should not be construed as an offer to buy or sell any product or strategy. You should contact your Financial Advisor with questions regarding your individual circumstance.