The addition of investor needs and current account features will allow for further documentation of the impact of that factor on the recommendation. Below are examples of common needs and features developed by PRI (Pension Resource Institute).
Plan to IRA
Needs
Available Services
- Professional discretionary investment management.
- Professional investment advice.
- Ongoing account monitoring.
- Retirement income and/or financial planning.
- Single financial professional or firm to coordinate and advise/manage my investment accounts.
Available Investments
- Actively managed funds and/or ETFs.
- Passively managed funds and/or ETFs.
- Investments from multiple investment companies/managers.
- Investments that align with values.
- Individual securities.
- Alternative investments and/or strategies.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
Tax Considerations
- Roth taxation/conversion.
- Application of the additional 10% tax.
- Continue making loan payments vs. paying tax on a rollover distribution.
- Taxation of employer stock.
- Application of RMDs.
Distribution Considerations
- Systematic payments.
- In-service and/or non-hardship withdrawals.
- Loans.
Beneficiary Considerations
- Ability to name a non-spouse beneficiary.
- Maintain an account for a beneficiary.
- Delay RMDs after the participant’s death.
Additional Considerations
- Sever the relationship with the prior employer.
- Protection from creditors and/or legal judgements.
Features
Available Services
- Discretionary investment management or managed accounts.
- Ongoing investment advice.
- Ongoing individual account monitoring.
- Retirement income and/or financial planning.
Available Investments
- Actively managed mutual funds and/or ETFs.
- Passively managed mutual funds and/or ETFs.
- Investments from a specific investment company/manager.
- Target Date Funds that align to the risk tolerance.
- Investments that align with values (e.g., ESG).
- Self-directed brokerage accounts.
- Alternative investments.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
Plan to Plan
Needs
Available Services
- Professional discretionary investment management.
- Professional investment advice.
- Ongoing account monitoring.
Available Investments
- Actively managed funds and/or ETFs.
- Passively managed funds and/or ETFs.
- Investments from multiple investment companies/managers.
- Investments that align with values.
- Individual securities.
- Alternative investments and/or strategies.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
Tax Considerations
- Roth taxation/conversion.
- Taxation of employer stock.
- Application of RMDs.
Distribution Considerations
- Systematic payments.
- In-service and/or non-hardship withdrawals.
- Loans.
Additional Considerations
- Sever the relationship with the prior employer.
Features
Available Services
- Discretionary investment management or managed accounts.
- Ongoing investment advice.
- Ongoing individual account monitoring.
- Retirement income and/or financial planning.
Available Investments
- Actively managed mutual funds and/or ETFs.
- Passively managed mutual and/or ETFs.
- Investments from a single investment company/manager.
- Target Date Funds that align to the risk tolerance.
- Investments that align with values (e.g., ESG).
- Self-directed brokerage accounts.
- Alternative investments.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
IRA to IRA
Needs
Available Services
- Professional discretionary investment management.
- Professional investment advice.
- Ongoing account monitoring.
- Retirement income and/or financial planning.
- Single financial professional or firm to coordinate and advise/manage my investment accounts.
Available Investments
- Actively managed funds and/or ETFs.
- Passively managed funds and/or ETFs.
- Investments from different investment companies/managers.
- Investments that align with values.
- Individual securities.
- Alternative investments and/or strategies.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
Tax Considerations
- Roth taxation/conversion.
Distribution Considerations
- Distribution options not available in the current IRA.
Features
Available Services
- Discretionary investment management or managed accounts.
- Ongoing investment advice.
- Ongoing individual account monitoring.
- Retirement income and/or financial planning.
Available Investments
- Actively managed mutual funds and/or ETFs.
- Passively managed mutual and/or ETFs.
- Investments from a single investment company/manager.
- Target Date Funds that align to the risk tolerance.
- Investments that align with values (e.g., ESG).
- Self-directed brokerage accounts.
- Alternative investments.
Guaranteed Income and/or Interest Rates
- Guaranteed investment returns.
- Guaranteed withdrawal benefits.
- Deferred annuity.
- Immediate annuity.
Commission to Fee
Needs
Ongoing Account Monitoring
- Ongoing investment monitoring.
- Ongoing education.
Ongoing Investment Advice or Discretionary Management
- Investment advice.
- Discretionary investment management or managed accounts.
Available Investments and/or Products
- Access to investments that are not available in the current account.