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October 25, 2022

4 Benefits of Delegating Management of Your Held Away Accounts with Will-Kate

Do you have a 401(k)? 403(b)? HSA? Or even a 529 education savings plan or variable annuity?

Do you know how the investments within those held away accounts are performing? How about how the investments within those accounts are allocated?

For many individuals, these held away accounts—often set up under a current or previous employer—are a large part of their retirement picture. But they are also, perhaps, the least understood.

As self-directed accounts, it is often unclear how (or if) each of these investments is helping the accountholder reach their bigger picture goals.

Traditionally, accounts such as 401(k)s, 403(b)s, and 529s have not been managed by financial advisors due to a limitation in technology. Advisors have not been able to provide the ongoing management and oversight of these accounts needed to optimize the client’s portfolio.

But now there is a solution. Will-Kate has recently integrated Pontera into our service offering. Pontera is trusted technology vendor with some of the largest financial institutions in the world. With their technology, we can now manage these previously held away assets with the same care and attention we give the rest of your managed portfolio.

Within this new offering, your Will-Kate team can now view, manage, and trade within your held away accounts in the same way we manage the rest of your portfolio.

This means your held away accounts can now receive the same attention to detail, integrity, and expertise you’ve come to value from our wealth management service.

You’ll also receive the benefits of having an even more streamlined financial plan and asset location preferences.

1) The Benefit of Delegating Management of Held Away Accounts

For many individuals, logging into their 401(k) screen is like reading a foreign language. Even with instructions on how to rebalance your held away account yourself, the task can become quite burdensome.

Will-Kate can now handle all this for you.

In the past, we were able to advise you on how to allocate funds within your held away accounts, but didn’t have the ability to manage them in real time for you.

Now, when time is of the essence, and you’ve got too much on your plate to go in and make changes to your accounts, we can update them for you.

Whether it’s market movement we’re concerned about or updating your allocation to reflect a revised timeline, we can buy, sell, or hold positions within these accounts right away.

You can cross this task off your list knowing we’ve got it all under control.

2) Active Versus Self-Directed Management

How your portfolio is invested can determine how much money you’ll have when you retire. So naturally, you’ll want to maximize your return any way you can, and active management of your accounts can do just that.

Would it surprise you to learn that professionally managed 401(k)s outperform self-directed 401(k)s by 3% annually, net of fees[i]? Past performance is not indicative of future results. 

For a 45-year-old participant, this could translate into 79% more wealth at age 65.

Just take a look at the example in the graph below that illustrates the value over time.

Past performance is not indicative of future results.  The following graphs are examples and results may vary for each investor. 

3) Comprehensive Account Management

There’s a reason comprehensive financial planning works, and that’s because it understands how investment management, financial life goals, and taxes all play into the amount of money you earn and keep at the end of every day. When one cog in the machine turns, all parts are affected. By adding Pontera technology to our service offering, we are able assist with how these held away accounts contribute to your plans.

4) Asset Location Priority

Where your assets are located can significantly impact your tax burden now and in retirement. Your Will-Kate team can now choose exactly where to best position your funds to limit the liability you accrue over time.

Now you don’t just have to rely on the somewhat limited options of your plan, but can integrate those investments with your current portfolio to optimize your end result. Your held away accounts will receive the same care and maintenance as the rest of your managed portfolio (as it should be).

Ready to get started?

Getting started is easy. Simply set up a call with Casey Franken to add your held away accounts to your Will-Kate service.  You can fully access Casey’s calendar by using this link.

Not a Will-Kate client yet?

No problem. We are always open to helping new clients who are a good fit. If you are an investor in need of wealth management, you’re in the right place. We serve individuals and families locally in the Sioux Falls and Aberdeen, South Dakota areas and virtually across the country.

Envisioning the big picture and setting goals in line with your life’s values are crucial in mapping your financial future. Together, we’ll design a strategic, custom-to-you, comprehensive financial plan that helps build your version of an extraordinary life.

Let us show you how it works with a complimentary and confidential Introductory Call today.


[i] Data from Vanguard “Putting a Value on Your Value: Quantifying Vanguard Advisor’s Alpha.” February 2019.