TandemModels®
Selecting from a list of investment options which include an array of exchange-traded funds (ETFs) and Dimensional Fund Advisors institutional index funds‚ advisors design asset allocation models using our TandemModels® software.¹
“Our system² allows advisors to create efficient asset allocation models using index strategies‚” explains Darwin Abrahamson‚ CEO Invest n Retire. “Once the models are created the software allows the advisors to make changes with ease.”
Our approach in directing employees to save for retirement by choosing an asset allocation model contrasts drastically from today’s typical service provider who directs employees to choose from numerous mutual funds‚ focusing on past performance rather than concentrating on each employee’s retirement goal.
The consequence of performance disease is low returns‚ high costs‚ and inattention to risk and rewards of asset allocation.
Diversified Exposure to all Major Asset Classes
The performance of a portfolio has two factors: (a) investment return and (b) volatility.
The ten year Brinson Study concluded that 93.6 percent of investment performance is based on allocation between the asset classes; i.e.‚ cash‚ stocks‚ and bonds. Therefore asset allocation between the asset classes is critical to the investment return of a portfolio.
Most employees are unlikely to acquire the skills needed to build portfolios like professional fiduciaries of institutional plans. However‚ our solution allows employees to choose an asset allocation model which provides diversified exposure to all major asset classes using index strategies.
By adopting our system for managing your tax-deferred retirement plan, your employees can start employing the best practices of institutional investors; i.e.‚ superior investment options‚ asset allocation‚ diversification‚ and management of fees and costs.