Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
In managed accounts (also known as a "separately managed accounts"), individuals are assigned a basket of mutual funds based on their age and risk tolerance, and taking into consideration outside assets they may own and other retirement income they can expect—such as from a defined benefit plan, Social Security and even a spouse's portfolio. Computer models devise a recommended asset allocation plan and automatically manage the portfolio.
Managed accounts are in some ways similar to target-date funds, but they are a more "custom-made" investment solution, closely tailored to an individual's overall financial situation.
Employees, however, should be aware that managed accounts can involve higher fees. In addition to the "expense ratios" (the annual management fees charged by funds held in the account) a "wrap fee" might also be charged by the financial firm or adviser providing the managed account services. A wrap fees can often add 0.30 percent or more on top of the expenses charged by the mutual funds held in the account.
The better returns for managed accounts in some studies often are attributed to the fact that most participants using managed accounts (as opposed to selecting their own investment funds) saw a sharp increase in their stock fund exposure as opposed to safer but lower-performing bond or money market funds.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 10,000 companies