Frequently Asked Questions

Some of the most anticipated questions. Hopefully, there's an answer here for you.

How do you determine risk tolerance?

We use decades-old risk tolerance methods, to provide a starting point for you to better understand your own risk profile. Through a brief survey, we are able to accurately assess how much risk you are willing to take in the markets as well as how much return you're looking to receive on your investments.

Does Active401k hold any of my money?

No. We never take custody of any of your funds. We simply provide solid advice as to where to invest it. We give you the suggested allocation and then you simply login to your custodian's web portal and make the changes we suggest.

Can you also provide recommendations on variable annuities, 403b and other company sponsored retirement plans?

Absolutely, we've done so for years. If we are not currently following the investment alternatives of the plan or annuity, all we need is a complete list of the available options - we'll take it from there. The service and notifications work just the same and can provide a valuable service to you.

You use the term active management frequently. What is active management?

Instead of the same old tired buy-n-hold investment strategies, ActivePortfolios provides an easy-to-explain tactical approach that can provide protection from normal market corrections while also participating in gains when they are available without undue risk.

See the Investment Strategy page for a more detailed explanation of our 3 Core Beliefs About Investing. Notice each model's performance during years when the overall markets saw large corrections.

How do you determine when to make changes to allocation?

Our model portfolios use active strategies that constantly monitor the momentum and direction of stock and bond markets. While we also actively monitor the individual investment options inside of your retirement plan, we make recommendations for reallocation every calendar quarter. When there is a high probability of a downturn in the market over the coming quarter, we move to the minimum prescribed stock allocation for that quarter. When the probability for gains is indicated, we prescribe maximum stock allocation based on the risk portfolio that you select. You can see the historical quarterly recommendations under the Investment Strategy tab.

How do you choose your portfolio?

When it comes down to deciding which of your investment options to suggest, we always recommend the investment options that are currently showing the most sustainable momentum compared to the others. It's simply a mathematical interpretation of "Which options currently offer the most potential for gain?"

How do the Active401k® models incorporate company stock that may exist as an option inside of your 401k?

Our models are based on varying - minimum and maximum - equity exposure based on the current risk for the coming calendar quarter. Our methodology does not support individual stock recommendations. Clients should take into consideration the total stock allocation percentage when deciding how much of their company stock to own. We defer to more diversified investment options available within their plan.

Can I make changes to the portfolio?

You cannot make changes to our model portfolios. You can change your profile with Active401k® to move to a riskier or less risky portfolio allocation. And of course, because you are in control of making the changes to your retirement account allocation (we just provide the information component) you can always choose to take more or less risk on your own.

Didn't Find Your Answer?

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