Reflections

Introducing: Professionally Managed 401(k) and 529 Accounts

We are excited to announce that Windgate Wealth Management can now professionally manage your current 401(k) and 529 plan accounts. This new service can translate into higher returns, less stress, and more long-term wealth.

Traditionally, accounts such as 401(k)s, 403(b)s or 529s were not managed by your financial advisor, putting you further behind your financial goals. Advisors could not provide the ongoing management and oversight that is expected and required as a fiduciary due to limitations in technology. Now, current technology enables us to view, manage, and trade any held away asset, providing you with the benefits of comprehensive portfolio management and reporting. This allows us to do the job you hired us to do — full, holistic account management and wealth planning — and helps you to rest easy that all your investable assets are being professionally managed.

Retirement accounts often represent the largest and most important asset for working professionals. Yet they usually receive the least attention and are the most likely to suffer opportunity cost losses from a “set and forget” strategy.

Dormant 401(k)s from previous employers are often best consolidated.  On the other hand, you will not want to consolidate your current employer’s 401(k).  An active 401(k) provides the best tax and savings benefits, especially if you are provided a matching contribution.  However, all the challenges related to simplicity, investing, and holistic planning are very present with 401(k) accounts left to be managed on your own.

Our innovative technology platform will allow us to manage your 401(k) the same way we manage your IRA and brokerage accounts. We will be able to proactively monitor and trade these accounts for you with a goal to increase account performance, implement tax strategies, and manage downside risk.

Studies show professionally managed 401(k)s outperform[1][2]

A study by Aon Hewitt Studies showed that professionally managed 401(k)s outperform self-directed accounts by 3.32%, net of fees[3]. This can translate into 75% more wealth over 20 years. The stress of managing your own 401(k) account can be eliminated as well. You no longer need to rely on an ad-hoc or dormant approach, but can rest easy knowing a disciplined process is being implemented to match your portfolio to your goals.

How it works

We can connect with any financial provider holding your 401k account if you have online access and can log in and trade the account online. The process is as follows:

  1. Via our online onboarding, you will be asked to input your username and password you use to log in to your 401(k) account. Windgate Wealth Management will not see or know your credentials, as they will be encrypted.
  2. Once connected, Wingate Wealth Management will be able to review your investment fund menu, set appropriate fund allocations, and adjust future contribution allocations on your behalf.
  3. As market conditions develop or funds are added/deleted from your plan, Windgate Wealth Management will be able to rebalance investments on an ongoing basis.
  4. Linked accounts will be added to your regular quarterly investment statements, along with tracking of net gain and loss activity and individual fund performance.

Get Started

We are excited to launch this new service that can improve your retirement.  We would love to talk about how professionally managing your 401k could work for you. You can reach us by calling (844) 377-4963 or emailing windgate@windgatewealth.com. You can also book an appointment online here.

[1] https://russellinvestments.com/Publications/US/Document/Value_of_an_Advisor_Study.pdf

[2] https://advisors.vanguard.com/iwe/pdf/IARCQAA.pdf

[3] https://corp.financialengines.com/employers/FinancialEngines-2014-Help-Report.pdf

Perritt Capital Management, Inc. is the Registered Investment Advisor for Windgate Wealth Management accounts and does not provide tax advice. Consult your professional tax advisor for questions concerning your personal tax or financial situation and your insurance agent for insurance advice.

Data here is obtained from what are considered reliable sources. We consider the data used to be relevant and reliable.

First published November 2022.

Past Performance does not guarantee future results.

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