While RMS does not believe in market-timing, the RMS Investment Committee monitors the current economic and market environment for any trends that could affect your account. Based on reallocation and rebalancing decisions, you can expect your account to be reallocated an average of twice per year and rebalanced just as often.
For purposes of efficiency, RMS takes a discretionary approach to managing assets. While we do our best to keep you informed, through your advisor, of any potential changes within the strategy, we will not inform you before reallocating your account.
No, RMS does not require you to open an additional account. RMS works within your existing account and uses the investment choices that are offered through your retirement plan.
Based upon the RMS investment philosophy, RMS recommends that a client hold little to no exposure to company stock. If a client is required to, or would like to, hold a certain percentage in company stock, RMS can accommodate that request.
Once we receive your Savings Plan Management paperwork, RMS will require approximately 7-10 business days to establish your account within our systems, research the investment options available to you within your plan, and reallocate your account to the strategy you’ve selected with your advisor.
Yes, you work with your financial advisor to determine if the existing strategy is still right for you. Every year, you will complete our investor profile questionnaire that can help guide that decision. Although it is not recommended to veer frequently from your selected strategy, you may make strategy changes throughout the year.
Yes, nothing changes with how you access your account online. However, you should not make changes to the investments in your account while enrolled in this service.
Generally no. Deducting a fee from the account requires the permission of your company and the custodian of the account. If you are in a position to influence that permission, fee deduction from the account may be possible.
If you change the login credentials for your account (some plans force a password change quarterly or annually), you must let us know so that we can continue to monitor your account. In most instances, we will discover a credentials change the following day when we update your account information. You will receive a secure email from RMS asking you to update your credentials with us.
We use principles of a Nobel prize-winning investment theory for optimal diversification.
Although return is the first thing on most investors’ minds, we spend significant time evaluating the volatility of various investment options and how they behave when combined. The real goal of diversification is to combine assets in such a way as to achieve the least amount of risk for a given level of expected return. Or said differently, the opportunity for the most return for a given level of expected risk.
We begin our disciplined process by identifying the range of portfolios that we will develop and what risk and return characteristics should apply to each. These portfolio strategies are suitable for most investors, from conservative to aggressive. They focus on attempting to reduce short-term volatility and chance of loss while giving the investor the opportunity to outpace inflation.
Asset Allocation Decisions
Asset allocation is the process of deciding how much money to invest in a particular asset class, such that the combination of asset classes fits into each of the portfolio strategies identified in the structural analysis in an efficient manner. Asset classes are categories of investments with common characteristics.
The goal is to identify the combinations of asset classes that maximize return for a given level of risk or minimize risk for a given level of return. The process requires forecasting future return and risk statistics.
We develop forecasts using a combination of historical data and current market information. In our view, appropriate asset allocation decisions involve applying reasoning beyond that which historical numbers may imply.
Security Selection Decisions
Our research team tracks and provides information on any of the securities available within your employer-sponsored plan. Incorporated into our selection analysis are:
Reallocation and Rebalancing
Monitoring the portfolios is an ongoing process. We regularly evaluate whether the portfolio stays in line with its stated objectives; whether the investment options are exceeding benchmarks; and whether market conditions are influencing the portfolio’s behavior beyond expectations.
The Investment Committee meets quarterly to analyze the portfolios and market conditions. If conditions suggest the portfolio’s efficiency would benefit, the Committee may decide to reallocate the portfolios by making adjustments to the asset class weightings, staying within the guidelines of each portfolio’s investment policy statement.
Studies show that regular rebalancing enhances a portfolio’s long-term results. Rebalancing decisions also are made quarterly at the scheduled Investment Committee meetings.