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Managed Accounts: A Path to Personalized Retirement Planning

Planning for retirement can feel overwhelming, especially when faced with a myriad of investment options. For employers and employees alike, managed accounts are becoming an increasingly viable alternative to a one-size-fits-all approach.

Managed accounts are nothing new – they've been around in various forms for decades, though their abilities have changed over time.

Whether you’re an employer looking to provide options for your workforce, or an employee planning for the future, it's important to be well-informed about all available retirement options. Managed accounts represent a modern strategy in retirement planning that considers the individuality of participants. While they may not be the perfect solution for everyone, their ability to provide customized, professional asset management could help play a role in retirement for many.

What Are Managed Accounts?

A managed account is a customized investment service designed for those who may not have the desire to manage funds personally. Instead, the accounts are professionally managed to align with individual financial goals, whether that's income generation or capital appreciation.

History and Evolution

Managed accounts have evolved since their inception. Initially, investors had risk-based models at their disposal, which later evolved into target date funds that aim to refine and simplify the retirement planning process based on anticipated retirement dates.

Today, managed accounts embody the next evolution of retirement savings options, introducing a personalized touch that takes into account more than just your expected retirement year.

Benefits for Employers and Employees

Managed accounts take things a little further than what standard target date funds offer by factoring in personal information to tailor an investment strategy to each individual.

For employees, managed accounts offer a strategy that can align more closely with their personal situations and goals by taking into account various factors such as account balance and other demographic data.

Plan Sponsors aren't left out either. By offering managed accounts, employers can provide an option that caters to the diverse needs of their staff.

Is There a Cost?

There is a participant-paid fee for opting into managed accounts.


Managed accounts aren't a one-size-fits-all solution – they offer one path among many. For some, the tailored advice and hands-off investment management are exactly what they need. For others, the cost or the idea of someone else managing their money may not be attractive.

If you're an employer, offering resources like managed accounts can be a significant value proposition for your workforce. If you're an employee, don't hesitate to explore these options to understand how they can serve your unique financial objectives.

As the lines between traditional retirement planning and personalized investing continue to blur, the value of managed accounts may very well increase. Whether you're starting your savings journey or heading into the sunset years, understanding the role managed accounts can play in your plan is something worth exploring.

This material is provided for educational and informational purposes only and should not be considered a solicitation of investment advisory services or specific investment advice. Please consult with your financial advisor on your specific situation.

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