Conrad Siegel Automates Risk-Reduction Process

A program from Conrad Siegel Investment Advisors aims to gradually guide 401(k) plan participants into more conservative investment choices as they near retirement.

Automatic Risk Reduction combines the simple, automatic changes from the popular target retirement date funds with Conrad Siegel’s transparent risk-based portfolios. Participants will be able to select an appropriate risk-based portfolio that will automatically become more conservative as they age.

According to Tara Mashack-Behney, president of Conrad Siegel Investment Advisors, few participants take an active role in managing their 401(k) plan and desperately need an automated system that will adjust their risk level over time to reach retirement goals. “The Automatic Risk Reduction Program combines the best features of risk-based portfolios and target retirement date funds,” Mashack-Behney said. She described the program as one that keeps clients’ 401(k) plans and investments simple, easy-to-understand and effective.

Target retirement date funds have a number of challenges, such as a one-size-fits-all philosophy, lack of transparency and use of proprietary funds. The Automatic Risk Reduction program allows risk-reduction schedules to be tailored to meet individual participant needs along with low fund expenses and transparency in portfolio management.

As the program is rolled out to existing Conrad Siegel Investment Advisor 401(k) clients over the next few months, the firm will work with plan sponsors to determine which features of the program are appropriate for their employees. Program participants will receive their own risk-reduction schedule with notifications from Conrad Siegel each time their portfolio steps down as they move towards retirement.

Conrad Siegel Investment Advisors is a wholly owned subsidiary of Conrad SiegelActuaries. More information about Conrad Siegel Investment Advisors is on their website.