401K Navigator
nav-i-ga-tor: n. one who applies the science of directing the course of something and of ascertaining its position at any given time.
Investing Today – More of a Challenge
Today’s market is increasingly volatile and highly reactive to economic and geopolitical news. Staying apprised of these market moves and how they might affect your portfolio is paramount to your investing success. Driven by greed and fear, most investors are market chasers and earn less than inflation.
Passive asset allocation or “Buy-and-Hold” can be hazardous to your wealth. Coming up with a “generic” or “targeted” mix of stocks, bonds and cash can leave your portfolio overexposed to certain market risks. It can dilute your performance to the point that you “go broke safely” or you do not keep up with inflation or your retirement goals.
Understanding today’s investing environment and your long-term goals is a critical first step to building a financial strategy to meet your individual investment goals. The second step is acknowledging that you may need a financial advisor’s assistance – one proficient in investing in today’s modern markets – to help guide you towards your financial goals.
Challenges Facing 401k Participants
1. Time Management: Market and mutual fund analysis vs. career and personal life
2. Information Sources and Plan Options: Often confusing, ambiguous, subjective and arrive after the fact
3. Trading Activity Concerns: Under-activity vs. over-activity where is the balance? When is action necessary, when is it not?
4. Asset Allocation: What is the right mix? Which funds do you use? How do you adapt the portfolio to changing market conditions?
5. Emotional Investing: The average investor is motivated by fear and greed. Research shows that the average investor repeatedly buys and sells at the wrong times and fails to generate returns that even come close to the market averages.
6. Results That You Can’t Afford: Dalbar, Inc. Quantitative Analysis of Investor Behavior Study, July 2003.
The study results from 1984 – 2002 show: The average equity investor earned 2.57% annually. Average annual inflation was 3.14%. The S&P 500 Index averaged 12.22% annually.
The 401k Navigator™–A Disciplined Objective
We help 401k participants respond to changing market conditions by actively rotating their assets among their investment options/mutual funds; by applying a systematic, disciplined response to changing market and economic conditions. This enables a 401k investor to move flexibly among those options in his or her plan showing the best relative performance.
Benefits of The 401k Navigator™
- Using a survival-of-the-fittest approach, mutual fund rotation strategies seek to rotate into the strongest mutual funds—and out of the weakest
- Seeks to respond to changes in the overall market
- Provides the potential to transform market volatility into opportunity
- May provide superior returns with less risk
How to Get Started with The 401k Navigator™
- Meet with Matt Falvey to review your 401k plan’s investment options and discuss your goals and risk tolerance
- Decide whether to have Rich Investments, Inc. make appropriate changes to your 401k portfolio or whether to have Rich Investments, Inc. email you monthly updates (subscription service)
- Determine fee-structure
Fee Schedule
The fee assessed shall be calculated on the basis of the total market value of the assets under Rich Investment Inc.’s supervision at the close of business on the last day of each quarter.
Minimum Investment: $100,000
Portfolio Manager: Matthew R. Falvey
Custodian: Schwab Institutional
Fee Structure:
$100,000 – $249,999
billed quarterly at 0.40% (1.6% annually)
$250,000 – $499,999
billed quarterly at 0.35% (1.4% annually)
$500,000 – $999,999
billed quarterly at 0.30% (1.2% annually)
$1,000,000 +
billed quarterly at 0.25% (1.0% annually)
