New potential DOL regulations have already led to more restrictions on investor choice, have lowered costs and generally are resulting in a lot more paperwork and fewer innovative solutions.
We can see the direction financial services are moving by looking at retirement plans like 401k and 403b plans. They have fewer choices made up of larger funds that correlate too closely with each other. Costs are being reduced and the main logic of investment is buy and hold, asset allocation and perhaps rebalancing. In fact the sponsoring funds often deny the participant the opportunity to change his or her risk profile by limiting the ability to make changes over a short period of time.
There Has Been a Problem:
Dalbar’s Investment Survey’s Results
Dalbar 30 Year Survey 30 year composite results 2.47%
30 year Equity Funds 3.79%
30 Year Asset Allocation Funds 1.78%
Considering that inflation has averaged 2.70%
These results are not attractive.
Why Is There A Problem?
Asset allocation, buy and hold index investing and reallocation are techniques that seek average results especially for the average investor.
Dalbar has discovered that employees take too little risk in positive market environments, buy too high when they invest and sell in discouragement when funds decline. Using an investment advisor has generally raised performance but not by much.
The assets available to participants are too similar for the best diversification. The funds available are generally large and act like index funds.
Limitations on transactions available only at the end of a day as well as other trading limitations put the participant at a disadvantage to professional investors.
Mutual funds today look very much alike because they hold so many stocks. The largest ones cannot move assets quickly for a number of reasons. They invest to compete with their peer group in performance as opposed to seeking the highest nominal return. They generally keep minimal cash balances.
What Is The New Solution?
Many of the larger 401k and 403b accounts now offer a brokerage account along with the conventional fund choices.
You may then invest in ETF’s without too many restrictions. You may own a portfolio including individual stocks and trade when markets are open.
These new abilities come with additional responsibilities and risk. Most employees cannot pay attention to ETF’s and stocks during market hours. To properly manage risk as well as to develop award winning performance may require a partner.
Capital Markets IQ LLC. (CMIQ) is an investment advisor that works with 401k and 403b brokerage accounts. You may empower CMIQ to manage your brokerage account for you. Advisor’s Capital Investments, Inc. acts as the sub advisor.
- Uses ETF’s and stocks allowing potential for more timely purchase and sales.
- True diversification using leading asset classes.
- International as well as domestic assets
- Value as well as momentum positions
- A plan for daily risk control monitoring
Assets purchased are time sensitive based on cyclical asset mapping leading to opportunistic purchases and sales.
Artificial Intelligence mines opportunities based on asset volatility and trend definition.
Individual stock research is focused on earnings growth at a reasonable price.
Your brokerage account strategy is designed for your personal risk tolerance and life situation. This type of account is exclusive and proprietory and has not been available on retirement accounts until now.
IRA rollover accounts use option writing strategies to increase income and reduce volatility.
Check out our performance history. You may think it is too good to be true. Of course past performance is no guarantee of future results. Abaris Management LLC provides the artificial intelligence input and Advisor’s Capital provides the diversification structure and cyclical mapping to meet the account owners risk reward profile.
Our advice is to experience it for yourself in real time with a portion of your account. Our future success is dependent on our value to you and the referrals we receive from our satisfied clients.
Send an email to rkmann@capitalmarketsIQ.com We will email more detailed information including historical performance.
In 2016 most plans reported aggregate performance of less than 4%. Let us show you our performance including that of our Artificial Intelligence research provider. We believe this input added to our best performing strategies will be attractive to you. Of course past performance is no guaranty of future results.
The management process described is only available to CMIQ through Advisor’s Capital Investments Inc.