Plan sponsors are now comparing the benefits of managed accounts with the target-date strategies. Many plan sponsors and industry professionals are wondering if managed accounts might be preferable to a passive investment strategy.
Is access to a personalized professionally managed account within your 401(k) plan the right option for you, or your plan participants?
Currently, costs for managed accounts are coming down. However, the question remains, do the results in managed accounts offset the cost – whatever that cost may be? Plan sponsors struggle with such questions.
In a recent edition of 401(k) Real Chat, Fred Barstein, contributing editor to WealthManagement.com’s RPA Edge portal interview’s Brock Johnson, President of Retirement Solutions at Morningstar Investment Management. During the interview, Mr. Johnson addresses why the managed account concept is becoming more broadly accepted. He also addresses using managed accounts as the Plan QDIA.
Many more questions exist around managed accounts. What about target date funds? Can managed accounts and target date funds co-exist? Each has their own benefits and challenges. For additional information visit www.WealthManagement.com.
