When it comes to planning for retirement, the options can feel overwhelming. Among these choices, managed retirement accounts are becoming increasingly popular. But are they worth the investment? Let's break down what a managed retirement account is, the benefits it offers, and whether it might be the right choice for you.
What is a Managed Retirement Account?
A managed retirement account is a type of investment account that is professionally managed. Generally speaking, these accounts aim to help you optimize your retirement savings by tailoring investment strategies to your individual goals, risk tolerance, and timeline. They differ from more traditional options like target-date funds, which are designed to automatically adjust the asset mix as you approach retirement but do not offer personalized management.
Benefits of Managed Retirement Accounts
- Personalization: Managed accounts can provide a personalized approach to retirement planning by considering your entire financial picture, including outside assets, spousal accounts, and specific retirement goals, to create a customized investment strategy.
- Professional Management: With a managed account, professionals make investment decisions on your behalf. This can be particularly beneficial if you lack the time or financial knowledge to manage your investments actively.
- Dynamic Adjustments: Managed accounts are periodically adjusted based on your financial situation or market conditions. This proactive management can help keep your portfolio aligned with your retirement goals.
- Improved Outcomes: Transamerica’s 2023 report on managed accounts shows that participants in managed accounts often see higher savings rates and better asset growth outcomes compared to those using traditional investment strategies. †
- Holistic Financial Advice: Many managed accounts offer comprehensive financial advice, which can include tax planning, estate planning, and retirement income strategies. This holistic approach puts all aspects of your financial life together to consider in your retirement plan.
Is a Managed Retirement Account Right for You?
Deciding whether to invest in a managed retirement account depends on several factors, which may include:
- Time Commitment: Managing your retirement investments can require time to research, monitor, and adjust your portfolio. If you have a busy schedule or prefer to spend your time on other activities, a managed account can save you time and effort.
- Financial Situation: Consider your overall financial picture, including other investments, debts, and retirement goals. A managed account can provide a cohesive strategy that integrates all aspects of your finances.
- Cost vs. Benefit: Evaluate the fees associated with a managed account and consider whether the benefits of professional management justify the cost. Consider whether the fees are comparable to similar services in the industry. For helpful information and pointers to discuss fees with the advisor, review the firm’s Form ADV Part 3.
Why Future Capital?
At Future Capital, we understand that planning for retirement is a deeply personal journey. Our managed retirement accounts are designed to provide you with the personalized advice and professional management that can help you work toward financial goals. We prioritize your best interests, offering solutions that are tailored to your unique situation and objectives.
By leveraging advanced technology and a team of experienced financial professionals, we will work with you to make your retirement plan dynamic, comprehensive, and aligned with your long-term vision.
A managed retirement account can be a valuable tool for many investors, offering personalized advice, professional management, and improved financial outcomes. Carefully consider your individual needs and circumstances to determine if this option is right for you. And remember, Future Capital is here to help you every step of the way.
†: https://www.transamerica.com/news-managed-accounts-new-white-paper-transamerica
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