Your retirement account
is likely one of your largest assets.
Are you giving it the attention it deserves?
Prudent investment decisions within your retirement account are critically important since the funds you accumulate over the coming years may need to support you through many years of retirement. Fortunately, your employer has enhanced your employer-sponsored qualified retirement plan to include access to professional money management through a self-directed retirement account. Through this opportunity, you can be provided with:
Access to an independent CERTIFIED FINANCIAL PLANNER™ and wider range of investment options, offering greater diversification opportunities and the potential for higher returns.
A portfolio that is managed according to your customized Risk Budget, which takes into account your risk tolerance, investment objectives, and investing time horizon.
Why Utilize a Professional Money Manager
for Your Retirement Plan Assets?
LACK OF TIME
Tremendous demands on time often leave little opportunity for personal investment management.
Many investors are understandably unfamiliar with financial markets and how to choose investment options. In fact, a study conducted in 2017 by Dalbar, Inc. showed that between 1986 and 2016, individual equity mutual fund investors achieved 3.98% annualized returns, while the S&P 500 returned 10.16%. 1
Investors often go through a severe cycle of emotions with their investments and can potentially make irrational decisions.
OPPORTUNITY FOR ENHANCED RETURNS
For investors who do not have the time, investment expertise, or desire to manage their own retirement accounts, the self-directed retirement account options can serve as an answer to these critical components of prudent asset management. Recent studies indicate that providing investors with access to professional investment advice can greatly enhance returns. In fact, Vanguard has provided data indicating that advisors can potentially add about 3% in net returns as a result of their services.
Value Added By Investment Advisors
1 Quantitative Analysis of Investor Behavior, 2017,” DALBAR, Inc. www.dalbar.com Equity performance is represented by the Standard & Poor’s 500 Composite Index,
an unmanaged index of 500 common stocks generally representative of the U.S. stock market. The average investor refers to the universe of all mutual fund investors
whose actions and financial results are restated to represent a single investor. This approach allows the entire universe of mutual fund investors to be used as the
statistical sample, ensuring ultimate reliability. QAIB calculates investor return as the change in assets, after excluding sales, redemptions and exchanges. This method
of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. You cannot invest
directly in an index. Past performance does not guarantee future results. Investors cannot directly invest in an index and unmanaged index returns do not reflect any
fees, expenses or sales charges.
2 Vanguard: The Value of Managed Account Advice, August 2015
The views expressed herein are exclusively those of CLS Investments, LLC, and are not meant as investment advice and are subject to change. No part of this report may be reproduced in any manner without the express written permission of CLS Investments, LLC. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not a guide to future performance. Investing in any security involves certain non-diversifiable risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any specific, or diversifiable, risks associated with particular investment styles or strategies.
The S&P 500® Index is an unmanaged composite of 500-large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. An index is an unmanaged group of stocks considered to be representative of different segments of the stock market in general. You cannot invest directly in an index.
A client’s risk budget is derived from the client’s specific answers to CLS’s Confidential Client Profile questionnaire, which establishes the client’s financial goals, ability to handle risk, and overall investment time horizon. The individual client risk budget is expressed as a percentage of the risk of a well-diversified equity portfolio.