An important trend in the industry — a shift in influence from the fund provider/record keeper to the fee-based independent advisor — will put advisors in a key position, asserts Jerry Bramlett in the current issue of NAPA Net the Magazine.
As a result of that trend, says Bramlett, advisors will find themselves in a position to tie together the core fund lineup and the best asset allocation program, using custom asset allocation models. Only the advisor can accommodate the demographic needs of the plan sponsor while being responsive to the latest findings about the best way to construct the glide path during participants’ accumulation years. The best tool for accomplishing this goal, Bramlett believes, is a custom asset allocation model.
Bramlett also outlines the differences between TDFs and managed accounts, as well as the different approaches to the use of TDFs and managed accounts at three providers — Vanguard, Fidelity and Schwab.
Bramlett’s “Inside Investments” column from the Spring issue of NAPA Net the Magazine is here; a pdf of the entire 64-page issue is here.
