Innovest Whitepapers

Investment Menu Simplification

Right-sizing retirement plan options for participant direction has been hotly contested in the retirement plan industry. Some argue that giving participants the choice to select investments from numerous different options leads to higher participation and better participant success. Others argue that simplifying investment menus and offering a thoughtful investment menu of 15 to 20 options offers better participant success. This paper offers guidance and best practices based on both academic and our experience over the past 20 plus years helping our clients build sound retirement plan programs for their employees.

The Case For Consolidation and Simplification: A Means to Improve Participant Retirement Readiness

Retirement readiness is the biggest challenge facing plan sponsors today. And many plan sponsors are reassessing their duty and obligation to create plans with the appropriate tools and features to maximize retirement savings for participants, to minimize fees paid by the plan (the savings from which are realized by the plan participants), and to ensure the plan is competitive to a group of similarly-sized peers in the marketplace. The voluntary plan marketplace is evolving, and as a deeper understanding of participant needs comes to light, so too does the necessity for plan sponsors to understand the strategies available to them to achieve these goals.

Could Your Family Benefit From an Independent, Outsourced Chief Investment Officer?

Families with assets in excess of $100 million often have multiple investment advisors managing different segments of the family's portfolio. However, having multiple advisors can decrease the likelihood of meeting overall objectives, managing risks, controlling costs, and generating better returns. A family’s Chief Financial Officer (CFO) may not be well equipped to manage investment advisors due to insufficient expertise and resources, including time. The most effective solution is to complement the family CFO with an independent family Outsourced Chief Investment Officer (OCIO).