Technological advancements have increased the amount and quality of participant data available. Managed accounts provide participants with a personalized savings and investment strategy based on their own unique set of information, along with ongoing professional management. Our flyer, “What Is a Retirement Managed Account?”, will help your plans sponsors understand managed accounts and the data they utilize to generate personalized asset allocation.
As a Retirement Advisor, you may consider helping plan sponsors enhance their QDIA options with managed accounts. You can offer valuable support to your sponsor clients on QDIAs by:
- Providing guidance with the prudent selection and monitoring of the QDIA;
- Reviewing and selecting the managed account provider;
- Ensuring QDIA aligns with the Investment Policy Statement (IPS)
Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss.
The date in a target date fund’s name refers to the approximate year when an investor in the portfolio is assumed to retire and likely would stop making new investments in the portfolio, and may plan to start withdrawing money. Using an asset allocation “glide path” (how the asset allocation changes as the target date nears), the portfolios generally become progressively more conservative until and after the approximate date of an investor’s “transition” into retirement. An investment, including the principal value, in a target date fund is not guaranteed and a portfolio can suffer losses, including losses near, at, or after the transition date, and there is no guarantee that a portfolio will provide adequate income at and through the investor’s retirement.
Each investor’s portfolio must be constructed based on the individual’s financial resources, investment goals, risk tolerance, investing time frame, tax situation and other relevant factors.
OppenheimerFunds does not recommend any specific asset allocations. A financial advisor can suggest an asset allocation strategy designed to meet your financial goals, time horizon and risk tolerance.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.