Keeping things simple and cost effective for you and your employees is important to us, so we offer our investment advisory services as a single asset-based wrap fee bundled with the services of third party firms that will provide your retirement plan recordkeeping, securities custody, and brokerage services.
We’ve pre-selected these providers as partners based on quality and cost effectiveness and also pre-negotiated their pricing for you. Each component of the total asset based wrap fee (which is deducted directly from plan participant accounts) is disclosed to you and your participants in writing.
4Thought’s compensation for services is derived solely from this percentage-of-assets wrap fee, an arrangement which we believe provides the best alignment of our incentives with your interests and those of your plan participants. Third Party Administration (TPA) services are unbundled and charged separately from the remainder of the above-mentioned asset-based fee costs, and are generally billed directly to you as the plan sponsor. This allows you the flexibility to use either a TPA that we refer you to, or a TPA of your choosing (if you have a preference). 4Thought does not accept any fees for referring plan sponsors to TPAs.
Characterized by investor fear and declining asset prices, a Bear market will be best attacked using Liability-Driven Investing.
Characterized by investor confidence and rising asset prices, a Bull market will be best attacked using Strategic Asset Allocation.
Characterized by investor uncertainty and volatile or sideways asset prices, a Wolf market will be best attacked using Opportunistic Investing.
Characterized by investor exuberance and soaring asset prices, an Eagle Market will be best attacked using Selective / Concentrated Investing.
The uniqueness of the 4Thought Retirement Plan Services program is in our Multi-Method Investing approach. When we look at the world of investment management, we can break it down into 4 primary categories of investment method that can be used by an investor to attempt to achieve his or her goals. We’ve found through both proprietary and third-party research that no single one of these methods is effective in all scenarios, but instead that each approach tends to have a particular market environment or part of the market cycle to which it is very well adapted. Our conclusion is that in order to achieve one’s life goals, one should diversify at the level of investment method, applying the most effective aspects of multiple completely divergent methods of investing, and not be dogmatic about using a single method.
Your plan participants will be able to choose from three options that determine 4Thought’s degree of involvement in the management of their retirement plan portfolio. Assets managed via all three options are charged the same level percentage asset-based fee to ensure that advisors and 4Thought have no incentive to recommend the use of one option over another.
The highest level of service and management that 4Thought provides is the default account management option for plan participants - and it’s provided at the same level cost as the other two options.
The “Qualified Default Investment Alternative” (QDIA) offered within the plan is a comprehensively and continuously managed portfolio of multiple separately managed account strategies. Each multi-SMA portfolio is customized to the individual plan participant based on their age and assumed future retirement date. 4Thought takes responsibility not just for managing the underlying portfolios of each individual SMA strategy, but also for allocating and transferring assets between the various SMA strategies contained in each participant portfolio.
As part of this service 4Thought automatically reviews the participant’s time to retirement each year and adapts the portfolio to become more conservative as the retirement date approaches. Because of the way that we’ve structured our Retirement Plan Services program, we’re now able to provide this multi-SMA approach to all participants (even those that’ve just started investing), whereas the same approach has historically only been feasible for very large initial investments when implemented outside of a corporate retirement plan.
Specialized method-specific SMA strategies will be used in appropriate combinations for the participant, each of which is managed by an algorithmic process designed to achieve a certain risk exposure. In addition to more traditional equity and fixed income strategies, these will also include liquid low-cost alternatives to hedge funds and private equity – risk exposures that are normally not made available within company retirement plans and are usually only available to accredited investors when found outside plans. Each SMA strategy houses a professionally managed underlying portfolio of multiple exchange traded funds and/or individual securities.
4Thought offers a selection of professionally managed separate account strategies to the plan, each of which is managed by an algorithmic process designed to achieve a certain investment objective, risk profile, or exposure.
With the completion of a questionnaire, 4Thought directs plan participants to an appropriate diversified turnkey allocation separately managed account option for their situation. Each turnkey portfolio is managed by an algorithmic process designed to achieve a certain investment objective or risk profile. This approach allows participants to customize how they want us to manage their account for them based on factors beyond age alone.
In this option the do-it-yourself participant may take direct control to create and manage their own portfolio using all of the investment options available within the plan. They may select from both the Managed Accounts and an “Exchange Traded Funds and Other Options” list in any percentage combination they choose. 4Thought will curate the plan’s list of available investment options and will periodically add or remove investments to ensure it continues to satisfy the needs of the retirement plan as a whole.
4Thought Financial Group utilizes the most effective aspects of technology and human interaction to create the retirement plan best aligned with achieving your financial goals and life dreams. Plan sponsors and participants both benefit from 4Thought's unique investment methodology, experience, and commitment to clients.
4Thought Retirement Plan Services' versatile solution includes: