Who’s Watching Your 401(k)?

BCS Wealth Management is an independent financial planning firm. One of the benefits of independence is flexibility to explore and choose industry-leading technology solutions. In previous years, we have implemented various software solutions for tax strategy and planning (Holistiplan); portfolio risk management (Nitrogen, formerly Riskalyze); monitoring and reporting for individual and institutional accounts (Schwab Advisor Center, Tamarac, and Fi360); and holistic financial planning (MoneyGuidePro).

According to the U.S. Census Bureau, excluding extremely wealthy households (top 1% of wealth), 401(k) accounts make up approximately 36% of an American household’s wealth. While the importance of managing 401(k) and similar accounts has long been acknowledged, BCS Wealth Management had not been able to provide proactive management services on such accounts until now. Our newest technology tool, Pontera, enables us to manage, monitor, and trade these “held away” retirement accounts just like your other accounts with us.

It is crucial to manage these types of retirement assets just as diligently as other investments. Studies have shown that individuals who manage their own 401(k)s often face challenges, leading to suboptimal performance. Vanguard released a white paper in 2001, which is revised annually, indicating that professional management of investment accounts could potentially generate an average of 3% additional performance each year, net of fees. For a 45-year-old 401(k) participant, this could translate to 75% more wealth at age 65.

You no longer need to bring in your 401(k) or similar account statements for our review, nor do you need to have the burden of setting and tracking the investment allocations yourself. Our advisors can make sure your “held away” retirement account complements your other investments that we oversee. We believe this should enhance holistic financial planning and long-term investment outcomes.

Your 401(k) or 403(b) plan will remain at your employer’s custodian. Nothing will be disrupted from your company’s HR standpoint. Pontera’s platform lets us manage the investments on your behalf while your 401(k) or 403(b) account remains at the other financial institution.

Our commitment is to help you grow and oversee your wealth broadly. To that end, Pontera lets us provide even better service on these held-away accounts. If your 401(k) or similar account is currently unmonitored, we encourage you to contact us for an in-depth review.


Leave a Reply

Your email address will not be published. Required fields are marked *

Form ADV Part 2A
Form CRS