What is a Managed Account?

If you’ve researched the world of investment, you’ve probably heard the term “managed account” once or twice. But what does is it even mean? Who’s managing what account? If you’re a little fuzzy on the distinction, or in need of a refresher course, this post will equip you with all the necessary information.

Managed Investment Account

A managed account is a type of investment service which selects a group of funds and packages them in an investment portfolio for an individual. The individual investor owns the account, but it’s overseen by a professional money manager whom they’ve hired on their behalf. The manager may buy, sell, or trade assets without the investor’s prior approval – so long as it’s in accordance with the objectives of their client.

what is a managed account

A managed account always involves fiduciary duty, which mandates the manager must act in the best interest of the client or potentially risk facing criminal penalties. To answer the question, “What is a managed account?” it’s best to first become familiar with the various types of accounts investors use to their advantage – some have a managed option and some don’t:

  • Portfolio of stocks
  • Portfolio of mutual funds
  • Diverse portfolio of funds
  • Assets, cash, or property titles
  • 401(k) accounts
  • IRAs

investment account types

The Pros of Managed Investing

Choosing to have your account professionally managed, either in person or via an online financial advisory firm, comes with many benefits. The most significant advantage of managed accounts is the alleviation of stress. Let’s talk about managed accounts when it comes to either a 401(k) or IRA.

Most people are incredibly excited to land a good job which offers a 401(k), but then are left to figure out the word of financial investments by themselves. Questions such as “What should I invest in?” and “How much money should I invest in each fund?” can cause major headaches. Continuously managing your 401(k) by yourself can quickly become overwhelming, causing people not to bother with the task. At that point, portfolios can fall off track and lead to a loss in investment. A professionally managed account will be monitored and rebalanced on your behalf so you won’t need to worry.

Most people with IRAs are looking for something to invest in, either to augment their existing investments or to grow their capacity for savings. The tricky part, however, is actually choosing which funds to invest in, determining how much money to allocate, and making meaning out of the rise and fall of numbers through continuous management. Employing professional account management makes this process much easier; your advisor or online financial advisory firm can help you make the right decisions and assist you in reaching your investment goals without spending more money than necessary.

the pros of managed investing

  • Industry knowledge: There are hundreds of thousands of assets and funds to choose from. A financial advisor will understand which ones have the best cost, categorical fit, and historical performance for you.
  • Disciplined process: Your account manager will most likely follow an algorithm or methodology when allocating your funds, taking the guesswork out of your selection process.
  • Tailored personal advice: As your fiduciary, your advisor should always work in your best interest. However, you should always watch out for the ethical integrity of your money manager.
  • Expert management: Managed investing can provide you with a diversified portfolio that will better balance risk and reward than typically seen when individuals do this for themselves. Furthermore, your managed portfolio will follow a strategy geared toward your specific financial goals.
  • Peace of mind: You save yourself the stress and anxiety of constantly looking at fluctuating numbers as values rise and fall; because professionals are typically experts in handling volatile markets, they can build a portfolio that can help you balance risk and reward. This can give you more confidence that you have a professional taking care of things.

With numerous benefits and peace of mind on the line, many investors choose to place their investment strategy into the hands of professionals that know the ins and outs of the industry.

GuidedChoice Advice and Management

Over the last 20 years, GuidedChoice has helped over 1.5 million people invest in their future. Our proprietary and rigorous methodology that we employ across all of our services was developed by Nobel Laureate Dr. Harry Markowitz. Our methodology was designed with investors in mind; we know that many investors favor balancing avoiding risk while seeking reward, and our methodology is designed to deliver just that.

Professional 401(k) Management

GuidedChoice professional 401(k) management will allocate the investments in your account to help you reach your goals. We will also advise you on what you need to save to achieve those goals, and can assist you in setting them if you’re unsure where to start.  Fill out your employer information to check if they offer GuidedChoice services. If so, simply sign in and receive your personalized investment strategy. You can easily implement our investment strategy tailored to your goals with just a click of a button at a very low cost.

If your employer hasn’t yet partnered with GuidedChoice, we can still help you set a confident path to your retirement goals.

Use our professional 401(k) advice to learn:

  • How to make better decisions to reach for financial goals
  • How much you (and your spouse, if applicable) will need to save inside and outside your 401(k) account to be prepared for retirement
  • How to allocate your various investments to help you reach your goals
  • How to tell when it’s time to rebalance your account – and instructions on how to do it

Professional IRA Management

If you have an IRA instead of or alongside your 401(k) account, or are looking to invest in an IRA, take advantage of GuidedChoice’s managed account service. If you choose us for professional IRA management, you won’t have to worry about selecting the right funds for your portfolio. Let us do the work for you; we’ll suggest the most appropriate portfolio for you and you can further personalize it by adjusting your savings rate or withdrawal date. You can even see the projected value at the date of your planned retirement. This enables you to make more informed choices and to decide whether you’d prefer to save more or retire later. We also will rebalance your account when necessary, to keep you on track.

At GuidedChoice, we don’t believe investors should chase the market, and should instead use it to their advantage. Don’t play the lottery with your retirement funds; apply a carefully chosen amount of risk to help you reach your goals and desired outcome. Our methodology balances avoiding risk while seeking reward and employs a proprietary methodology designed to achieve steady, long-term growth. We can help you make smart tradeoffs while avoiding unnecessary risks.

You don’t need to be an expert to invest successfully; use the help of GuidedChoice for professional account management to save yourself time and stress. You might know the market conditions, but with the assistance of our investment team, you can trek confidently on your path towards retirement.

Thinking About Rolling Over?

If you already have a 401(k) or an IRA, roll it over to GuidedChoice for managed investing from industry-leading professionals. The process is fast, easy, and 100% free. Most people are unaware of how much their retirement plan is costing them; between account and administrative fees, costs of funds and charges for management advice, a large portion of your potential savings are siphoned off never to be seen again. GuidedChoice doesn’t believe in erroneous charges or hidden fees, and instead offers the entire benefit package within our managed account programs at one low, flat cost. Use our convenient fee checker to see how much you currently paying in fees and if you can save by choosing GuidedChoice for your IRA.

So, what is a managed account? To recap, it’s:

  • A way to have your investment savings professionally managed and monitored by an expert
  • A great option for those who have little knowledge on what funds to choose or where to invest their money
  • A vehicle to provide income after retirement
  • The best way to gain peace of mind over the thousands of your investment dollars and their security
  • A means of saving time and energy by lifting the need to watch, research, and rebalance your account
  • Easy and affordable, when managed by GuidedChoice

Still have questions? Head over to our Support Center, or reach out to one of our helpful Customer Service members. You can contact us via email at help@guidedchoice.com, schedule an appointment to speak to a representative, or give us a call at 800-774-7459 between our business hours of 8 AM – 5 PM PST M-F to talk to someone directly. We look forward to speaking with you and teaching you everything you stand to gain by utilizing our managed account services.