How expenses can affect your 401k retirement savings:
Assume the high cost 401k participant, Toby, realized a 6.5% annual return over forty years, while investing $4,000 a year in actively managed mutual funds. The other 401k participant, Sue, invests the same amount of money annually over the same time period with near identical investment strategies, but is able to realize an additional 1.5% a year positive return by being invested in a low cost 401k plan (therefore actually realizing 8% a year). After forty years Toby would have $748,191.96 while Sue would have $1,119,124.16 or 49.5% more in their respective 401ks.
401K Investment Management and Design Services
Invest the “DCA Way”, keep costs low, diversify, and achieve the two most important variables by formulating asset allocation models around low-cost index funds and other passive investment vehicles. DCA formulates 401k plan designs around DCA’s Model Portfolios, which not only embrace DCA’s emphasis on low cost funding mediums, but also makes intelligent investing easy and intuitive for plan participants.
Plan participants can easily match their risk tolerance,
growth objectives, and target retirement dates to the
appropriate DCA Model Portfolio; Aggressive Growth,
Balance/Moderate Growth, and Income/Capital Preservation.
What does DCA charge for this service? DCA does not simply
preach low cost, DCA backs up its philosophy with action and
charges a reasonable and fair rate of .30% of TOTAL assets under management and further, both in respect to DCA and our affiliated service providers, operates on a
zero revenue sharing, open investment architecture that eliminates revenue sharing between entities serving your 401k plan and also ensures that your participants have access to virtually any low cost fund available in the market place.
DCA offers IRAs, IRA rollovers, Private Investment Accounts, and Trusts. DCA operates with the same low cost, “DCA Way”, investment philosophy that is utilized in connection with DCA’s 401k plan designs. This means for those investors seeking low cost DCA Model Portfolios and investment solutions for their individual IRA or personal investment account, you can gain access to similar portfolio/asset allocation models as those offered through DCA’s designed 401k plans. The fees for this service start at a low rate of .30% of annual TOTAL assets under management.
For those investors seeking more aggressive capital appreciation, DCA will select individual common stock securities for your account and combine these selections with an aggressive DCA Model Portfolio for a 1.5% fee of annual TOTAL assets under management.
This DCA service is for “high net worth” individuals, companies, or trusts seeking aggressive capital appreciation or the utilization of more complex trading strategies to mitigate the risk and volatility associated with a specific sector, asset, or overall portfolio.
DCA’s Accredited Investor Private Account Management Services employ performance based contracts and are only available to persons, trusts, or companies meeting specified net worth and/or other requirements pursuant to applicable federal securities law.
For those plan sponsors limited in flexibility due to contract termination clauses, surrender charges (if your plan is under a group annuity contract), or other factors thereby curtailing a plan sponsors ability to exercise a change in service providers for their plan. DCA can help make sure you are making the best of your current situation. DCA will also put together an action plan that will take into account your current contract terms and formulate a transition plan around those variables to ensure a conversion to a better plan, if needed, will be
effected at the earliest date in an expeditious and seamless manner.More Details...
DCA does not guarantee, nor does it imply to guarantee, that past performance of data cited herein, with respect to specific investment vehicles, asset classes, and/or investment strategies are a guarantee of future investment results.
Plan Sponsor (Employee Benefit Plans) Investment Management Service:
DCA, acting in a co-fiduciary capacity, will analyze, select, and monitor investment options for clients sponsoring or representing and/or other employee benefit plans. DCA will exercise the investment selection process within the guidelines, risk tolerances, and objectives, as mandated and set forth, in the Investment Policy Statement. In the event that no Investment Policy Statement is present, DCA will either create one or exercise the aforementioned process in accordance to DCA's investment philosophy as described above, and within the standards prescribed by applicable law and IRS tax code. In relation to the investment selection process, DCA does not, nor does it plan to in the foreseeable future, accept any form of compensation, monetary or otherwise, from any party sponsoring, affiliated, or distributing the investment products and securities recommended by DCA.
