Weighing Cost and Personalization


When it comes to selecting a plan default investment, there are a number of factors to consider. Managed accounts typically come at a higher cost than target-date funds, but have the potential to deliver a higher level of personalization. A higher cost will likely have an impact on the value employees may receive from the solution. Therefore, it’s critical to understand which types of participants may be more likely to benefit from one solution over the other.


In this paper, you will learn:

  • The important factors to consider when selecting a default investment

  • How managed accounts compare to target-date funds in a variety of factors considered

  • Which types of participants may benefit from managed accounts as the default investment