For many pre-retirees, their 401k or 403b is one of the most significant parts of their retirement nest egg. Yet, they devote little time to overseeing the investments in their portfolio or blindly trust that the autopilot investment options are the best vehicles to help them reach their goals. One of the core philosophies in our firm is that the investment allocation should be a derivative of the financial plan, not the other way around. In other words, our financial plans can optimize the amount of risk one should take to reach their goals, and if the investment allocation doesn’t match that risk profile, it is as worthless to the client as the nutrition plan or exercise regimen that is crafted and then never gets implemented.
From our side (the advisor), analyzing and monitoring each clients 401k is very time intensive because the structures and investment options are different for most every plan. We want to thoroughly research every fund offered in order to provide excellent advice for our clients, but also need an incentive to be compensated for our ongoing time and expertise. That is how we came up with our individual 401k monitoring and advice service. You can engage us to provide the following:
- Analyze your retirement plan structure and investment options
- Customize a 401k allocation that integrates with your financial plan and empirically optimizes your ability to reach your financial goals
- Actively monitor your 401k so that any macroeconomic changes we make in your global allocation are reflected in your 401k
- Provide an annual financial check up on your 401k for rebalancing recommendations, allocation changes and financial plan integration
- Enjoy the peace of mind of knowing that all your retirement accounts are rowing in the same direction
The cost for 401k monitoring is 0.8% annually (or 0.2% per quarter) which is slightly less than our usual agreement. We give a bit of a price break since the only thing we can’t do on your behalf is place the trades within your retirement plan. It is so important that all of your investment accounts complement each other and abide by the same risk profile. Many pre-retirees are hoping their 401k will get them to their retirement goals, but struggle to articulate what they own or why they own it. If you’d like help making sure that your 401k is propelling you toward your retirement goals and not subjecting you to unforeseen risks, just let us know. We are happy to show you a sample of our analysis at no charge.