RPA In-Plan Investment Solutions
We design an investment menu that helps your employees
retire better.
RPA takes a holistic approach to menu design. We apply cutting-edge research in selecting and maintaining your plan’s investment offerings, in order to positively impact employee retirement outcomes.
Behavioral economics teaches us that investors love market gains and fear market losses – even relatively small ones. Most investors understand that investments carry risk, yielding gains and losses. Meanwhile, actually experiencing market volatility feels scary, leading to emotional decision-making and potentially unfavorable outcomes. Research shows investors often panic sell during a market downturn, undermining their long-term investment returns.
Retirement plan menu design involves more than simply identifying a list of funds. To address the behavioral realities of working Americans, we apply research-based solutions designed to drive positive investor behavior.
We design an investment menu that helps your employees retire better.
RPA takes a holistic approach to menu design. We apply cutting-edge research in selecting and maintaining your plan’s investment offerings, in order to positively impact employee retirement outcomes.
Behavioral economics teaches us that investors love market gains and fear market losses – even relatively small ones. Most investors understand that investments carry risk, yielding gains and losses. Meanwhile, actually experiencing market volatility feels scary, leading to emotional decision-making and potentially unfavorable outcomes. Research shows investors often panic sell during a market downturn, undermining their long-term investment returns.
Retirement plan menu design involves more than simply identifying a list of funds. To address the behavioral realities of working Americans, we apply research-based solutions designed to drive positive investor behavior.
RPA takes a tiered approach to
investment menu design:
RPA takes a tiered approach to investment menu design:
Tier 1: Target Date Funds
Primarily for unengaged plan participants, providing a reasonable allocation over time for the “average” working American.
Tier 2: Goals-Based Models
Primarily for engaged plan participants seeking standard models or personalized managed accounts.
Tier 3: Core Menu
RPA recommends a core investment menu including active and passive index funds for “do-it-myself” plan participants.
Tier 4: In Retirement
Tiers 1, 2, and 3 should support replacement income in retirement.
Tier 1: Target Date Funds
Primarily for unengaged plan participants, providing a reasonable allocation over time for the “average” working American.
Tier 2: Goals-Based Models
Primarily for engaged plan participants seeking standard models or personalized managed accounts.
Tier 3: Core Menu
RPA recommends a core investment menu including active and passive index funds for “do-it-myself” plan participants.
Tier 4: In Retirement
Tiers 1, 2, and 3 should support replacement income in retirement.
We customize each tier to your specific employee demographics and benefit objectives. Our key focus and ultimate goal is ensuring your employees – from date of hire through retirement – can achieve their financial goals.
When was the last time you reviewed your plan menu design and investment offerings?
Contact us for a free, no-obligation consultation.