Improving your approach to default money
Participant engagement has been a longstanding challenge for those offering investment advice and managed account solutions. While most employees want and need professional investment assistance1, very few actually take advantage of the help that is offered to them2.
When a managed account is offered on an opt-in basis, average adoption rate is frequently below 10%. This has led many advisors to recommend to their clients that they utilize a managed account as their plan’s Qualified Default Investment Alternative (QDIA) eliminating the need for employees to make a choice. When this approach is taken, a key question is understanding how the defaulted money is invested.
Stadion offers a unique and innovative service called “Personalized QDIA” in which we create custom participant-level portfolios utilizing data passed to us from recordkeeping partners, eliminating the need for participants to take action. This strategy allows participants to get the help they need without lifting a finger.
Personalized QDIAs are available:
To learn more about Stadion’s personalized QDIAs and how they may work for your firm, please contact your Stadion representative or email email@example.com.
1 PlanSponsor, “Majority of 401(k) Participants Would Like Online or Financial Professional Help”, August 2018.
2 Charles Schwab, “Advice Matters”, 2015.
3 The list represents examples of participant data inputs. Stadion may consider using any input(s) referenced, as well as inputs that are not listed. Actual data used may vary based on the recordkeeper and participant.
Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment
strategies may lose value. This is the disclaimer style.