Manhattan, NY -- (SBWIRE) -- 04/09/2014 -- Individual 401K participants who sought third party professional investment advice experienced nearly 3% (2.92%) better returns over a five year period spanning 2006 to 2010, net of fees, according to the report Help in Defined Contribution Plans: 2006 through 2010 from Aon Hewitt and Financial Engines. Considering this period includes the economic recession of 2008 these are impressive results and should not be ignored.

The report studied the impact of utilizing professional investment help such as target-date funds, managed accounts, and online advice – collectively referred to as “Help” – in eight large employer-sponsored defined contribution plans, representing more than 400,000 individual participants with $25 billion in plan assets. According to Aon Hewitt/Financial Engines’ projections, because the advantages of using Help can accrue over time, a 45-year old participant using Help and investing $10,000 can acquire 70% more wealth ($71,400) by age 65 compared to a similar participant managing their portfolio on their own ($42,100).

The contributing factors to the widening performance gap between participants who used professional Help and those who did without were poor portfolio diversification and inappropriate risk choices. This proved especially true in 2009, according to a press release by Financial Engines. In addition, there are also those participants who reacted to market volatility, shifting to cash or bonds and thereby missing out on the market rally that same year. “Overall, 38% of non-Help participants have risk levels that are excessive, and 18% have risk levels that are too low. In contrast, participants using professional Help maintained more diversified allocations with appropriate risk levels, and also employed a rebalancing strategy.”

According to the Society of Professional Asset Managers and Record Keepers (SPARK), as of April this year there are more than 74 million 401K participants with over $3 trillion dollars in 401K balances. Although the Pension Protection Act of 2006 specifically states that individual 401K participants are entitled to seek out third party professional investment advice, many still do not.

Old Greenwich Capital Partners recognized this serious need and it is the company’s mission to deliver professional discretionary asset management services to individual 401K participants. The goal is to help individuals build wealth and create a path to a sound retirement. Old Greenwich Capital Partners wants to help address the individual’s retirement issues by proactively helping clients focus on the benefits that can be achieved through a disciplined, professional approach to investing through their 401K Account.

Bridging the Returns Gap

74 Million people in the U.S. participate in a 401K plan. Their plan assets may be a significant part of their net worth and yet the majority do not seek help managing those plan assets. In recognition of participants’ need for professional asset management and investment services, Old Greenwich Capital Partners created its wealth advisors division to offer Individual 401K Advisory: Plan and investment option review; Individual risk tolerance assessment; Tactical discretionary management of plan assets; Plan Monitoring; Quarterly Investment measurement and review; educational communications; and a Level Fee structure.

Old Greenwich Wealth Advisors utilizes a four pronged process which includes: review, understand, propose and implement. Upon signing the discretionary asset management agreement, the individual 401K account remains with the current plan custodian. Old Greenwich Wealth Advisors will then review the plan, the client’s risk tolerance, and propose the asset allocation. The strategy is then implemented, allocation changes are made on a timely basis, and the client is made aware through email updates. Performance reviews are scheduled quarterly, on the phone or in person, and fees are charged on a quarterly basis.

Over the last decade markets have been stricken by volatile cyclical movement. In order to succeed in such an environment, one needs to employ a strategy that specifically addresses this new dynamic. Old Greenwich Wealth Advisors approach is tactical management of 401K assets pursuant to a focused proprietary risk driven investment model. The ultimate goal is to refocus attention on the individual’s 401K and improve performance. As for asset allocation, because the nature of the markets is cyclical, Old Greenwich Wealth Advisors approach is simple. When markets are trending positive, client accounts are positioned in Wealth Accumulation mode. This is done by allocating 401K assets to higher return asset classes such as equities. However, when the cycle begins to decline, client accounts are shifted to Wealth Preservation mode and assets are allocated to less vulnerable asset classes such as fixed income and cash – seeking to win by not losing.

Properly managed 401K Assets can have a critical impact on one’s ability to make sound decisions regarding one’s retirement. It is only the lack of advice and access to professional management and investment services that has prevented 401K participants from fully realizing the opportunity. With the growing cost of healthcare, inflation, the length of time one spends in retirement, higher tax rates, and the possible restructuring or insolvency of social security, now is not the time to take a chance with one’s future.

Old Greenwich Wealth Advisors mission is to provide Individual 401K Plan Participants with the investment expertise, time, and attention necessary to ensure that their 401K assets will have a positive impact on their net worth and help create sufficient wealth that will enable them to thrive, not just survive, in retirement.

About Old Greenwich Capital Partners
Old Greenwich Capital Partners (“OGCP”) is a customized multi-manager platform founded originally in 2005 by Jeffrey Arsenault to offer a select and strategically diversified roster of experienced investment managers.

In the aftermath of the credit crisis, many investors have chosen to change the way they allocate capital to hedge fund managers, frequently investing via separately managed accounts (“SMA”). An SMA platform can eliminate lockups, gates and suspended redemption's, and provide a much needed level of full transparency regarding the underlying holdings of a fund. Furthermore, the platform also provides vehicles to access managers with AUM <$100M, that make up 80% of the hedge fund universe

OGCP has designed a technical platform focused on two key tenets: identifying investment managers that are alpha generating and have aligned investor risk/reward parameters; AND providing an integrated technology and reporting infrastructure that serves both sophisticated investors and managers

At OGCP, risk management is at the foundation of the investment process and is fully integrated into our process and framework. From manager selection to portfolio construction and ongoing monitoring, we feel that the initial manager approval and selection is paramount in reducing in both idiosyncratic and systemic risks.

ACCOUNT DETAILS:

Name: Jeffrey Arsenault
Address: 509 Madison Ave #1006, Manhattan, NY 10022, United States
Phone #: 646 568-4105
Website: http://www.ogcap.com
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