Advisors might well wonder “what’s not to like” about managed accounts – a new survey offers some insights.
On the positive side of the ledger, Fidelity found that nearly half (48%) of participants enrolled in managed accounts said that the ongoing monitoring of their investments was one of the most valuable things about the offering. Similarly, 44% said that the annual review was essential, and of those, 38% said that ongoing management was beneficial as well.
So, what’s the problem? Well, Fidelity’s research showed that those who don’t use managed accounts say it’s because they need more education on why the offering could be right for them:
- 39% of those who don't use a managed account say they lack understanding of what is being offered or the benefit
- 25% said that not knowing enough about them is a major barrier to adoption
Fidelity claims, however, that once it’s explained to participants what a managed account is and how it offers ongoing professional management of their retirement accounts:
- 54% say the offering would be relevant to their needs
- 52% said that they would find the service useful
While that’s a majority, it’s only barely so. What do you think? Share your thoughts in the comment box below.
