What’s a managed account?
A managed account is a service inside your retirement plan that provides you with a mix of investments personalized to your needs and situation. If your employer offers one, you’ll find it listed with all your other investment options on your plan website or in your enrollment materials.
Besides providing an investment portfolio that’s chosen and professionally managed for you, a managed account offers additional support that can be quite helpful if retirement is on your horizon.
Managed accounts can identify sources of retirement income
As you move into your 50s and 60s, you may be getting more worried about how you’ll cover your expenses in retirement. A managed account can help by giving you a strategy for managing your retirement income.
Your strategy can include all your possible sources of retirement income:
- Withdrawals from your current workplace retirement account, as well as other retirement, bank, and investment accounts
- Pension benefits
- Social Security
What’s included in retirement income?
Income sources among Americans 65 and older
Source: U.S. Social Security Administration, 2021
The projections available with a managed account generally factor in income taxes—something that’s often hard to figure out on your own. They also suggest how much will come from benefit payments—and how much you might need to withdraw from your savings and investments.
Available in most workplace retirement plans, target-date funds1 (TDFs) provide a one-step approach to choosing plan investments. And for the most part, they tend to do their job quite well.
But as retirement approaches, you may find that an investment approach based only on your retirement age is no longer enough. You may want something more closely matched to your needs and situation.
Drawing on information about your own finances and situation, a managed account can customize your investment approach based on:
- Your account balance and how much you contribute to your account
- Your employer’s matching contribution
- Balances and pension estimates from other retirement plans your employer offers
- Social Security projections
- Your age and earnings
By supplying some other information—such as savings in outside accounts and answers about your risk tolerance—you can get a portfolio that’s even more closely tailored to your needs.
Managed accounts provide you with guidance when you need it
Although a managed account takes care of your investment strategy for you, the decisions you make are important to reaching your goals. As a managed account investor, you get personalized tips and advice to help make sure you’re saving enough, keeping your data up to date, and taking timely action.
And, of course, if you work with a financial professional, be sure to make them part of the process.
If you participate in a John Hancock retirement plan, you may log in here.
1 Although the target-date funds are managed for investors on a projected retirement date timeframe, the fund’s allocation strategy does not guarantee that investors’ retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals.
For complete information about a particular investment option, please read the fund prospectus. You should carefully consider the objectives, risks, charges and expenses before investing. The prospectus contains this and other important information about the investment option and investment company. Please read the prospectus carefully before you invest or send money. Prospectus may only be available in English.
It is your responsibility to select and monitor your investment options to meet your retirement objectives. You should review your investment strategy at least annually. You may also want to consult your own independent investment or tax advisor or legal counsel.
There is no guarantee that any investment strategy will achieve its objectives. Past performance is not a guarantee of future results.
This content is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
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