$13B+ in AUM
Our proprietary process reflects what 60.6% of participants prefer: less risk over more reward
Our proprietary process, designed by Dr. Harry Markowitz, Nobel Laureate for Modern Portfolio Theory, reflects what 60.6% of participants prefer: less risk over more reward. Applying GuidedChoice's bi-constant relative risk-aversion (BI-CRRA) utility function, we compare simulated wealth at retirement for different levels of portfolio risk. The comparison rewards higher wealth slightly and penalizes lower wealth harshly. Evidence of our process' effectiveness has been shown through multiple market downturns—for instance, in the 2008 crash, while the S&P lost 37% and other 401(k) accounts had losses of more than 25%*, the most any of our portfolios lost was 11%.
For you, this means that not only do we share fiduciary liability at a plan level, but also that GuidedChoice takes on fiduciary liability for the participant—freeing the advisor to focus on the fiduciary responsibilities that are core to the success of your Plan.
What Your Plan Participants Think*
Say knowing my "numbers" will encourage me to save more
Want personal advice about retirement savings
Lack confidence in their 401(k) decisions
After receiving advice, 87% of participants increased their Plan savings rate
*Source: J.P Morgan
Unlike others who use model portfolios that have set allocation mixes or investment lineups no matter who the client is, GuidedChoice takes a customized approach by "double optimizing" across asset allocation within your Plan's investment options. First, we determine asset allocation along the efficient frontier of maximum return at minimum risk within our proprietary, conservative model. We then take nearly any Plan investment lineup to create portfolios customized to you at a variety of risk levels. And if you haven't chosen your Plan's investment options, we can help with that too!
We're fueled by a powerful mission—the belief in financial freedom for all. It's why we have no affiliations or strategic partnerships with any institutional investor or venture capital firm, nor with any investment managers or brokerage firms. This level of independence allows us to work with anyone, including start-ups whose plans are often bypassed because of low plan balance.
Creating Trust and Building Confidence —
At a Low Cost