Many of our clients who are still working have 401(k) or 403(b) plans through their employers. Most of these plans use target-date funds that automatically select investments given a set retirement horizon. However, target-date funds can be limiting and may not meet all of your needs.
Our financial planning process is designed to be customized and comprehensive for the families we serve. Up until now, it has taken extra work on both sides to incorporate outside retirement accounts as it requires coordination between advisor and client. Using a software platform called Pontera, our financial advisors can provide investment management on retirement accounts and integrate them directly into our current tech stack. This enables us to keep your investment strategy and financial plan in sync while giving you full visibility over your entire financial picture.
The best part? Besides the initial setup, you don’t have to log into ANOTHER platform. Pontera simply provides the connection to your employee benefit plans and seamlessly integrates them with our Black Diamond (investment oversight) and eMoney (financial plan oversight)platforms.
Don’t leave your 401(k) behind
Traditionally, employee benefit plans such as 401(k)s and 403(b)s have been self-directed, making it the responsibility of the employee investor to decide how to invest their assets. However, recent studies have shown that professional management of a 401(k) can potentially result in more growth (upwards of 75%*) over its lifetime.
Vanguard’s Advisor Alpha analysis estimates financial advisors can add 3% or more in annual returns, net of fees. An additional 3% annual return on a 401(k) starting at $100k could yield over 75% more value in 20 years.**
If you’re working with a financial advisor, it may be time to consider your 401(k) and 403(b) as part of your full financial life for comprehensive management.
Advised Employee Benefit Plans
Your advisor can make sure your investments are diversified to lower risk and increase opportunities for higher returns. With this type of oversight, we can help keep your investments in harmony with your personal risk tolerance and your goals at the forefront.
Additional advantages to professional management of your 401(k) or 403(b):
- Personalized planning, not one-size fits all
- Balance with all of your assets
- Professional review of performance and fees
- Comprehensive retirement income planning
- Cohesive financial strategy, pre- and post-retirement
- Minimized taxes with asset allocation
About Pontera
Thousands of retirement savers across the country use Pontera to get professional management of their 401(k), 403(b)s, and more by their trusted advisor. With Pontera, you simply connect your account to enable your advisor to monitor performance and manage alongside your full portfolio.
With Pontera, you simply connect your account to enable your advisor to monitor performance and manage alongside your full portfolio. As your advisor, we will then be able to monitor and invest your funds in accordance with your investment strategy.
We have fully vetted the Pontera platform for its security, reliability, and ease of use. Prior to implementation, we collaborate with clients to understand the potential benefits of this tool and the value it can add to their financial plans.
If you are interested in Pontera and the value it can bring to your financial plan, contact us today for a cost-benefit analysis.
*Putting a value on your value: Quantifying Vanguard Advisor’s Alpha, Vanguard, 2022 **This example does not incorporate additional contributions. Please Note: The figures presented by Vanguard Advisor’s Alpha do not represent actual returns, are hypothetical in nature, and may not be inclusive of an adviser’s investment management fee. Past performance is not an indication of future results and no performance can be guaranteed. This information is being provided for purely informational purposes and should not be used to make a final investment decision.