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The Margin

Artesys News & Insights

Everything You Need to Know About a Managed Account Provider

In most cases, American workers look forward to the feeling of freedom that comes with retirement. They can finally spend more time with family, travel the world, learn new hobbies, move to a new city, or simply take it easy after decades of hard work.

It’s what the “American Dream” is all about; if you work hard enough, you’ll earn a life of happiness and opportunities. And to many people, that’s the stuff that makes the 9 to 5 worth it.

The same ideal rings true for most business owners and entrepreneurs too— maybe even more so than the average worker. They may believe in the value of retirement, yet the planning process can be a bit more complex and involved.

Retirement Planning for Business Owners

Business owners and entrepreneurs have the seemingly difficult task of not only prioritizing their own retirement goals, but also their company’s and employees’. In addition, offering a retirement plan for their team can bring on concerns of expense, administrative burdens, and lack of employee interest.

Do any of these ring a bell for you?

Despite the skepticism, retirement savings only cost employers 2.4% of an employee’s compensation on average, according to studies from Score. Moreover, it’s been found that retirement plans have a positive impact on employee recruitment and retention.

Here are two more facts from Score that may give you a pause:

  • 48% of departing employees said a lack of retirement benefits influenced their decision to leave.
  • 94% of small business owners who offer 401(k) plans report that these plans drive recruitment and retention.

Pushing retirement planning to a later date is rarely the answer for most businesses. Furthermore, doing it alone can be just as harmful. Business owners who have a financial professional by their side are much more likely to make better informed decisions and, ultimately, keep their employees happier and stay longer.

That’s where Artesys managed accounts come in.

We work together with retirement plan sponsors and financial professionals to help participants meet their retirement and wealth management goals.

With our proprietary investment strategies, active management, and open communication, we’re here to help you build success for years to come.

What is a Managed Account Provider?

We know that not everyone is in the investment industry or has the aspiration to learn about the ins and outs of investing. We also know that the ones who are more financially inclined may not have the time required to actively manage their retirement account.

And we believe, why should they have to?

Managed account providers offer a “do it for me” approach to investing. In short, they are responsible for choosing the investments and managing them for your team on an ongoing basis, according to their individual risk tolerances and ages.

Artesys gains this insight from our Risk Tolerance Questionnaire that is given to each employee who signs up with our services. These questions help us determine which investment approach works best for each individual. After that, all parties (except for us) can sit back and relax because we’ve got it covered.

At the end of the day, our goals are to improve the retirement plan’s overall financial health and generate the best financial outcomes for participants. With your initial help, we can make that happen.

So, if that wasn’t convincing enough, let us explain why a managed account could be the right choice for your business.

Why Use a Managed Account Provider for Your Business?

As a business owner, getting your employees to the point of retirement is important to you. You care about their success not only as employees but as people too. So, when it comes to picking the right investment partner for your 401k plan, you have a must-haves list, and you shouldn’t have to compromise. Here’s where to start.

1. Employee Satisfaction

The most successful business owners are the ones who prioritize the person behind the employee and believe that they work to live, not live to work. When employees are set up for success, they’re a lot happier and will want to stay at a company longer. At Artesys, we work to make it a seamless process—easy enrollments initially and effortless service afterward. No guesswork or frustration needed.

2. Fiduciary Responsibility

The investment partner you want for your business is the one that works in your and your employees’ best interest. Always. As the plan’s fiduciary, Artesys not only cares deeply about the financial success of the parties involved, but it also has a legal responsibility to do so. We are committed and disciplined to doing whatever it takes to help achieve our clients’ retirement goals.

3. Diverse Investment Options

The right investment partner should offer appropriate investment options for all employees. Artesys knows that everyone takes a different approach, has unique goals, and varied risk tolerance with retirement investing. Because of this, we’ve created two distinct approaches, Defensive and Offensive, with seven different portfolio options that are designed for success. Not sure which option best suits you? We can help with that, too.

4. Ongoing Support

Financial professionals should never expect every person on the retirement plan to be financially savvy because they shouldn’t have to be. All parties involved should be able to seek advice about their portfolios when they need it. At Artesys, this is something we stand by. We want your experience to be the best that it can be, so if you need any help at all, we’re just a phone call or email away.

5. Expertise

Oftentimes, the do-it-yourself approach can lead to emotional investing, and as a result, less than ideal performance. The right investment partner knows this and has extensive knowledge of how behavioral psychology and biases affect investment decision making. At Artesys, we are well-versed in avoiding common investment mistakes and remain disciplined to achieve optimal success.

6. Performance History

Our program is backed by more than 30 years of investment experience, 20 years of qualified plan experience, and 20 years of performance history. Of course, past performance is no guarantee of future performance, especially without context. However, performance paired with process can give a general idea if a financial professional is successfully achieving what they set out to do.

7. Additional Resources & Material

Providing educational resources is key because financial professionals in this industry should know that investing can be confusing and overwhelming for many people. They should also know that everyone retains information differently—some verbal, written, visual, etc. That’s why Artesys provides education in all forms: videos, brochures, presentations, and more. As we said above, we can also be reached by phone, email, or in person.

8. Transparency

For any business, transparency is important. Employees should be informed every step of the way. With Artesys, we provide an updated video with your investment performance, a market recap, and additional education to keep you in the loop. You will always know what your money is invested in and exactly how much you are being charged. If you need help along the way, give us a ring!

Why Choose Artesys as Your Investment Partner?

There are several reasons why Artesys managed accounts are the way to go for your company’s 401(k), and we could go on forever just talking about it. That’s how passionate we are about what we do.

But don’t just take our word for it. Here’s what a few of our clients have to say:

“Many employees and employers have concerns with market volatility.  Knowing that earnings can be wiped out quickly with market corrections, investors wanted a better solution.  Essentially, they want to take advantage of market gains – while protecting themselves in times of market volatility.  It’s been an excellent solution we can provide, due to Artesys. 

In my experience, Artesys is the only solution available in a qualified plan.”

Lincoln Franke, Regional Director of OneAmerica Retirement Services

“The main focus of my interest in the Artesys investment management has been the defensive investment side of the business.  I use it as an alternative to Target Date Funds for participants in retirement plans who desire a “do it for me” alternative to Target Date Funds.

That said, very few active managers offer a one up on modern portfolio theory staying fully invested during all market cycles and offer a defensive approach too that will mitigate a participants downside risk if so desired, and do so at a very competitive fee for active management.
 
The main reasons for my continued support and recommendation to others is good investment results and fantastic service and communications to participants.”

Bill Meyer, President and Co-Founder of Cutter & Company

The feelings are mutual! ?

While the stamp of approval is great from our amazing clients, what’s even greater is that we are truly helping to make a difference in people’s lives. The results speak for themselves.

It’s just another reason why we love doing what we do day in and day out.

How to Get Started

Currently, we work with OneAmerica as our record keeper. Plan sponsors, such as business owners, entrepreneurs, HR staff, and committee members, must have a retirement plan with OneAmerica first. From there, Artesys can be added to the plan as a managed account. If you have a plan advisor, we are well-acquainted with working together to make your retirement goals a reality.

To use our managed account, employees must complete the simple sign-up process here.

In general, you can expect the Artesys professional management cost to range between 0.4% to 0.75% annually. The cost is deducted directly from your retirement account and shown on your quarterly statement.

Example pricing:

If you have $100,000 in your retirement account, and the Artesys cost is 0.5%, Artesys professional management would be less than $45/month (deducted quarterly).

At around $45 per month, taking the work out of retirement is less expensive than the average gym membership!

Give Artesys a try.

  • No upfront cost
  • No contractual obligation
  • Cancel anytime

If you have any questions throughout, don’t be afraid to reach out to us for further clarification. It’s what we’re here for!

Website: artesysonline.com

Email: artesys@artesysonline.com

Phone: (877) 880-2543

We look forward to the possibility of working for your team! ?