Contact your financial advisor or HR department to add Indexed Risk Control to your 401(k) plan
Do you know what’s in your 401(k) plan?
Many of us trust the default retirement savings options given to us by our 401(k) plan administrators. A common strategy used are target-date strategies. Total assets in target-date strategies stood at approximately $2.8 trillion at the end of 2020, up from $2.3 trillion at the end of 2019 (1). This strategy type, with its automatic stock-and-bond glidepath methodology, may seem safe but can hold as much as 50% in stocks even when an investor is ready to retire. That means retirement savers can suffer double-digit losses in major market crashes such as the 2008 financial crisis or the 2020 COVID-19 crisis—precisely when they need the money the most.
Don’t you deserve better?
These default strategies are common practice because they’ve worked in the past. But the world has changed, and you can no longer trust the outcome will be the same. At Build we’ve invented Indexed Risk Control™; this strategy is designed to address the challenges of volatile market conditions and a low interest rate environment. It is available for all types of investor objectives: Conservative, Moderate, and Aggressive.
During the market crash of 2020 our flagship Conservative strategy – which consists of over 90% fixed income – had a max drawdown of only 6.24%, while many other conservative strategies experienced a drawdown of 15% or more. It ended the year up 8.5%.
Take Control of Your Future
It’s time to log into your 401(k) or talk to your financial advisor to find out if Build’s strategies are right for you. Our Indexed Risk Control strategies are available in select 401(k) plans as well as in private trusts for accredited investors. To learn more contact your advisor, your 401(k) plan administrator, your HR representative, or call our toll-free number at (833) 852-845
Did you know you can select funds on your own as well?
- Go to your 401(k) provider’s site
- Login to your account
- Depending on your provider, you will want to look for language around “change or rebalance investments”
- From there you can select any fund you would like and what % you’d like to invest
- If a fund you are interested in is not available, contact your HR department or financial advisor
At Build we know you have big plans for your money, and we’re here to help keep them on track with more reliable solutions.
1. Morningstar 2021 Target-Date Strategy Landscape. https://www.morningstar.com/lp/tdf-landscape