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Better Investment Management, Better Outcomes

4 Benefits of Consolidating Your Held Away Accounts with RiversEdge

Do you have a 401(k)? 403(b)? HSA? Or even a 529 education savings plan or variable annuity?

Do you know how the investments within those held away accounts are performing? How about how the investments within those accounts are allocated?

For many individuals, these held away accounts—often set up under a current or previous employer—are a large part of their retirement picture. But they are also, perhaps, the least understood.

As self-directed accounts, it is often unclear how (or if) each of these investments is helping the accountholder reach their bigger picture goals.

RiversEdge has a solution.

With our new service model, your RiversEdge advisor can now view, manage, and trade within your held away accounts in the same way we manage the rest of your portfolio.

Your held away accounts can now receive the same attention to detail, integrity, and expertise you’ve come to value from our wealth management service.

You’ll also receive the benefits of having consolidated accounts, an even more streamlined financial plan, and asset location preferences.

1) Consolidating Accounts

For many individuals, logging into their 401(k) screen is like reading a foreign language. Even with instructions on how to rebalance your held away account yourself, the task can become quite burdensome.

RiversEdge can now handle all this for you.

By consolidating all of your accounts, your RiversEdge advisor can ensure your financial plan is firing on all possible cylinders. We can succinctly align all your investment accounts to turbocharge the progress you make toward financial goals.

In the past, we were able to advise you on how to allocate funds within your held away accounts, but didn’t have the ability to manage them in real time for you.

Now, when time is of the essence, and you’ve got too much on your plate to go in and make changes to your accounts, we can update them for you.

Whether it’s market movement we’re concerned about or updating your allocation to reflect a revised timeline, we can buy, sell, or hold positions within these accounts right away.

You can cross this task off your list knowing we’ve got it all under control.

2) Active Versus Self-Directed Management

How your portfolio is invested can determine how much money you’ll have when you retire. So naturally, you’ll want to maximize your return any way you can, and active management of your accounts can do just that.

Would it surprise you to learn that professionally managed 401(k)s outperform self-directed 401(k)s by 3.32% annually, net of fees[i]?

For a 45-year-old participant, this could translate into 79% more wealth at age 65.

Just take a look at the example in the graph below. The professionally managed account balance is $400K higher than the self-directed account balance. That’s nearly half a million more this investor will get to enjoy in retirement than he would have otherwise realized by “setting and forgetting” about the investments in his 401(k).

3) Comprehensive Account Management

There’s a reason comprehensive financial planning works, and that’s because it understands how investment management, financial life goals, and taxes all play into the amount of money you earn and keep at the end of every day.

When one cog in the machine turns, all parts are affected.

By updating our service model, we are able to take your financial plan that extra mile by maximizing how these held away accounts contribute to your plans.

4) Asset Location Priority

Where your assets are located can significantly impact your tax burden (and therefore, net “take home” income) now and in retirement. Your RiversEdge advisor can now choose exactly where to best position your funds to limit the liability you accrue over time.

Let’s Get Started

Now you don’t just have to rely on the somewhat limited options of your plan, but can integrate those investments with your current portfolio to optimize your end result.

Getting started is easy.

Simply set up a call with your RiversEdge advisor to add your held away accounts to your service.

Not a RiversEdge client yet?

Well, what are you waiting for? If you are a business owner in need of wealth management, you’re in the right place. We serve business owners locally in the Wilmington, DE area and virtually across the country. We simplify the planning process so you can focus on being the best business owner you can be. Let us show you how it works with a complimentary and confidential Discovery Call today.  

[i] Data from Aon Hewitt report: Help in Defined Contribution Plans