Personalized advice provides retirement plan participants with a number of benefits, particularly during periods of uncertainty. However, offering this kind of guidance can be challenging.
But now you can, thanks to Newport’s Managed Account service. It provides your employees in your qualified retirement plan with a professionally designed investment and saving strategy, customized to his or her unique goals—all of which is critically important in times of market volatility.
It works in conjunction with Newport and your plan’s advisor, is easy to implement and is available at no cost to your company.
How Does It Work?
Through a comprehensive but easy-to-complete online survey, an employee answers a few questions. Using this information, as well as information provided through integration with our recordkeeping platform, our service calculates the employee’s target retirement income, recommends a retirement age, and provides a customized investment and saving strategy that takes the employee to and through their retirement.
For a small monthly fee charged to plan participants who subscribe, our Managed Account service will manage the employee’s personalized strategy today, tomorrow and throughout their retirement—helping them to get on track and stay on track to meet their goals. In fact, managed accounts have been found to be particularly helpful for employees who are not on track for retirement, with this group seeing a 33% increase in savings rates when using a managed account±.
How It Can Work for Your Plan
No matter how big or small your plan our Managed Account service is available to every client. And you can choose to use the service to help your employees in multiple ways:
- Have employees subscribe on a voluntary basis.
- Use the Managed Account service as the plan’s QDIA for employees not making an election or being automatically enrolled. The service qualifies as a QDIA under DOL safe-harbor guidelines.
- Introduce the service with a “re-enrollment event” during a plan’s conversion to Newport where all employee balances and investment elections are automatically placed in a managed account unless they opt out of the service. This re-enrollment event can also qualify under a DOL safe-harbor provision.
Fast, Simple, Straightforward and Engaging
Our Managed Account service is turnkey, fully integrated with our recordkeeping system, and does not require you to change your plan’s investment menu. We offer your employees a full range of support—including education campaigns—and provide you with tools that you can use to measure employee engagement.
Because it’s personalized, employees often remain more engaged and committed to their retirement plan, even in times of market volatility.
Let’s Get Started
Ready to learn more? Contact your Newport representative for more information on our Managed Account service.
For Plan Sponsor Use Only
± Source: The Impact of Managed Accounts on Participant Savings and Investment Decisions, Morningstar Research, January 22, 2019
Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Investment Advisory and fiduciary consulting services are offered through Newport Group Consulting, LLC, a registered investment adviser and wholly owned subsidiary of Newport Group, Inc. For more information about Newport Group Consulting and its services, please visit newportgroup.com or refer to our Form ADV Part 2, which is available by contacting us at 407-333-2905, or visiting our website.
The Managed Account service is a web-enabled financial advisory service for retirement plan participants that uses technology supported by NextCapital Group, Inc. (“NextCapital”) and integrated with the retirement plan recordkeeping system. The service may be offered to participant accounts including employer-sponsored defined contribution accounts (401(k), 457, 403(b), and other participant directed plans). The service allows plan participants to develop a strategy to help them reach investing and retirement goals by offering a personalized plan for saving and investing, forecasts for retirement income and wealth, and the creation and management of model portfolios using the designated investment alternatives offered in the employer-sponsored defined contribution plan. Please refer to the Newport Group Consulting, LLC Managed Account ADV Part 2 for detailed information regarding the Managed Account service and associated fees. The ADV Part 2 is available at www.newportgroup.com and www.iard.com.
NextCapital licenses its technology to Newport Group, but does not serve as an investment adviser to Newport Group or its clients.
Newport Group and NextCapital are not affiliated companies.