An investment implementation that is fitted to the needs of an individual or the contributors to a retirement plan can have major benefits for the future. Before committing to a particular asset allocation, it’s important for advisors to guide a client in a direction that suits the client’s plans for the future and doesn’t put his/her finances at too much risk. An implementation that saves a client money in the short term is not really the best choice for the years ahead.
Exchange-traded funds (ETFs) have become popular choices over the past few years. These securities, which are traded on stock exchanges and usually track an index, generally involve lower fees than mutual funds. That makes them a relatively inexpensive choice for investors, but not necessarily the right option.
Structured investing offers a number of advantages over tracking indexes. Investment managers set strategy based on academic research, so they can make wiser recommendations and minimize risk. They also have the flexibility to negotiate better trades than are available through an ETF.
Learn more about how OBS Financial tailors structured investing solutions to the needs of clients by downloading our white paper, “The power of implementation: How structured investing beats exchange-traded funds.”