INVESTMENT EXCELLENCE
Investment Excellence means delivering the right tools and the right skills to use those tools to achieve long term investment success. The two parts of this success are Fund Selection and Investment Guidance.
Fund Selection
Most plans that promise a wide selection of funds only include funds that pay the providers fees. There may be hundreds of funds to select from but does this really give you an unbiased choice of investments? Many providers make their selection process sound objective, but having multiple families of funds to select from is not enough. Using these providers means there are conflicts-of-interest before you even start the selection process. Often these funds carry higher internal expenses and achieve lower performance.
WealthHarbor Select 401(k) starts with the full universe of funds and no preconceived preferences. Funds are identified by investment class and compared to similar funds and benchmark indexes. Funds are evaluated for performance, style purity, and management stability, over various time frames. Information is gathered from third party sources such as Standard & Poors, Morningstar, Lipper, and Thompson Financial. Once the screening process is completed, funds are recommended to the plan. WealthHarbor constantly screens the fund universe and provides annual updates on funds and recommendations for changes as necessary.
This conflict-free, independent analysis is what sets WealthHarbor apart from the competition. Our revenue sharing structure creates a level playing field among all funds. If a fund provides credits, they are passed on to the plan so all funds are considered equally.
WealthHarbor assumes fiduciary liability for investment selection because of this independent analysis. Other providers are encumbered by conflicts that make it too difficult to deliver this kind of objective fund selection process.
Investment Guidance
Your employees have one chance to prepare for retirement and it is essential to provide them the tools necessary for success. At the end of the day, (or career in this case) the most important question is “how much money do I have for retirement?” There are three ingredients that impact the answer to this question. They are the length of “time” to prepare for retirement. The amount of “contributions” made each month to achieve retirement goals, and the “performance” that is achieved on those savings. “Time” and “contributions” are within each participant’s control. “Performance” is determined by the investments available within the 401(k) and the skill in using those investments to achieve the appropriate risk adjusted performance.
WealthHarbor offers plan sponsors a full compliment of investment education, and/or advisory tools to select from. Investment options include participant-directed selections in addition to a managed portfolio for those participants that are uncomfortable with managing their investments or simply want professional assistance. What matters most in either approach is how well the participant’s account performs.
How important is performance? The difference in a single percentage point can be amazing. Let’s assume an employee contributes $500 a month for 30 years. If that employee earns 8%, he/she will accumulate $745,179 for retirement. A return of 9% will increase his/her retirement nest egg to $915,371, an increase of 22.8%.
In this case, retirement success can be impacted by two factors, plan expenses and investment return. Reducing expenses delivers more money to participants so managing plan costs can directly add to retirement savings. Increasing return is a function of identifying excellent investments in each asset class and using investment management techniques that can enhance long-term performance. At WealthHarbor we work to increase long-term performance by providing your employees with solid investment guidance and providing your plan with excellent investment selections.
WealthHarbor Conservative Growth Managed Portfolio
Our experience suggests that many plan participants do not have the knowledge, expertise, or time to dedicate to proper portfolio management. That is why we offer the WealthHarbor Conservative Growth Managed Portfolio in addition to the traditional participant-directed menu. We designed the managed portfolio to provide professional assistance to those participants not comfortable with self-directed accounts. This portfolio management service is free to all participants and utilizes the funds within your plan. Your participants may choose to invest all or a portion of their plan assets through this managed portfolio.
Annual Due Diligence
WealthHarbor performs annual due diligence reviews on all investment options available in your plan. This review process includes recommendations to your plan on funds that should go on a “watch list” and funds that should be replaced. This annual report provides necessary information to assist with the fiduciary responsibilities of your plan.
Investment Excellence means delivering the right tools and the right skills to use those tools to achieve long term investment success. The two parts of this success are Fund Selection and Investment Guidance.
Fund Selection
Most plans that promise a wide selection of funds only include funds that pay the providers fees. There may be hundreds of funds to select from but does this really give you an unbiased choice of investments? Many providers make their selection process sound objective, but having multiple families of funds to select from is not enough. Using these providers means there are conflicts-of-interest before you even start the selection process. Often these funds carry higher internal expenses and achieve lower performance.
WealthHarbor Select 401(k) starts with the full universe of funds and no preconceived preferences. Funds are identified by investment class and compared to similar funds and benchmark indexes. Funds are evaluated for performance, style purity, and management stability, over various time frames. Information is gathered from third party sources such as Standard & Poors, Morningstar, Lipper, and Thompson Financial. Once the screening process is completed, funds are recommended to the plan. WealthHarbor constantly screens the fund universe and provides annual updates on funds and recommendations for changes as necessary.
This conflict-free, independent analysis is what sets WealthHarbor apart from the competition. Our revenue sharing structure creates a level playing field among all funds. If a fund provides credits, they are passed on to the plan so all funds are considered equally.
WealthHarbor assumes fiduciary liability for investment selection because of this independent analysis. Other providers are encumbered by conflicts that make it too difficult to deliver this kind of objective fund selection process.
Investment Guidance
Your employees have one chance to prepare for retirement and it is essential to provide them the tools necessary for success. At the end of the day, (or career in this case) the most important question is “how much money do I have for retirement?” There are three ingredients that impact the answer to this question. They are the length of “time” to prepare for retirement. The amount of “contributions” made each month to achieve retirement goals, and the “performance” that is achieved on those savings. “Time” and “contributions” are within each participant’s control. “Performance” is determined by the investments available within the 401(k) and the skill in using those investments to achieve the appropriate risk adjusted performance.
WealthHarbor offers plan sponsors a full compliment of investment education, and/or advisory tools to select from. Investment options include participant-directed selections in addition to a managed portfolio for those participants that are uncomfortable with managing their investments or simply want professional assistance. What matters most in either approach is how well the participant’s account performs.
How important is performance? The difference in a single percentage point can be amazing. Let’s assume an employee contributes $500 a month for 30 years. If that employee earns 8%, he/she will accumulate $745,179 for retirement. A return of 9% will increase his/her retirement nest egg to $915,371, an increase of 22.8%.
In this case, retirement success can be impacted by two factors, plan expenses and investment return. Reducing expenses delivers more money to participants so managing plan costs can directly add to retirement savings. Increasing return is a function of identifying excellent investments in each asset class and using investment management techniques that can enhance long-term performance. At WealthHarbor we work to increase long-term performance by providing your employees with solid investment guidance and providing your plan with excellent investment selections.
WealthHarbor Conservative Growth Managed Portfolio
Our experience suggests that many plan participants do not have the knowledge, expertise, or time to dedicate to proper portfolio management. That is why we offer the WealthHarbor Conservative Growth Managed Portfolio in addition to the traditional participant-directed menu. We designed the managed portfolio to provide professional assistance to those participants not comfortable with self-directed accounts. This portfolio management service is free to all participants and utilizes the funds within your plan. Your participants may choose to invest all or a portion of their plan assets through this managed portfolio.
Annual Due Diligence
WealthHarbor performs annual due diligence reviews on all investment options available in your plan. This review process includes recommendations to your plan on funds that should go on a “watch list” and funds that should be replaced. This annual report provides necessary information to assist with the fiduciary responsibilities of your plan.
