StraightLine Introduces "Do It for You" Personal 401k Management Service
TROY, MI, October 4, 2005 -- A growing number of people are beginning to realize the three legged stool on which their retirement rests (Social Security, Pensions, and 401k) may only have one leg, their 401k. For most, considering full dependence on their 401k for retirement is a scary idea.
This may be why in 2001 the US Department of Labor (DOL) allowed for an objective third party expert to actively manage individual 401k retirement plans. This groundbreaking decision spawned a new kind of service called personal 401k management.
In this ruling, the DOL made provisions for individual retirement accounts to be "maintained and overseen by a financial expert who is independent..." from the employer or fund provider (DOL "Advisory Ruling 2001-09A").
In response to this ruling, StraightLine created a "do it for you" personal 401k management service called Pro (K). Companies like StraightLine can now take discretionary control of 401k accounts. They can provide proactive management, constructing well-balanced portfolios for individuals, and adjusting allocations on behalf of the account holder.
"This kind of personal 401k management was not allowed a few years ago - and it is definitely needed," says Bethany Mosshart, the CEO of StraightLine. "We opened 5 new branch offices in the last 18 months and are growing at an annual rate of 350%. Our clients convey such relief when they open their quarterly statements to find a well-diversified and professionally managed 401k," says Mosshart.
"Services like Pro (K) give 401k holders a well diversified account that is actively managed by professionals without ever having to move their investments to another company," says Jim Kovach, Director of Research. "People really seem to like the idea of keeping their money where it is, and having us manage it on their behalf," says Kovach.
Although there are other companies who offer a "do it for you" add-on to their advice or mutual fund offerings there are very few companies devoted to personal 401k management like StraightLine. "Offering 401k advice via the Internet may be a great way to deliver complex allocation models to clients, but it is not particularly customer-friendly. We prefer to sit down with our clients 1-on-1, in a personal way, then manage their account for them for a low annual flat fee." says Mosshart.
About StraightLine
Founded in 2001, StraightLine was one of the first companies to offer "do it for you" personal 401k management to individuals and companies. With over $170,000,000 under management and an annual growth rate of 350%, StraightLine is one of the fastest growing providers of this service. StraightLine, an independent Registered Investment Advisor, is headquartered in Troy, MI, with offices in Detroit, Grand Rapids, Boston, Phoenix, and Toledo. Offices will also be opening soon in St. Louis and Cleveland. For more information visit www.myRplan.com or call 866-401-5238.
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