According to a news release from Fulcrum Financial, the company’s advice is based both on the individual participant’s risk tolerance and age. Participants electing the free advice first complete an investment questionnaire which the company uses along with the person’s age to make personalized investment recommendations, the announcement said.
David Nolte, Fulcrum’s founding principal, said in the announcement that the company can offer the service without charge because its plans are based solely on ETFs. “ETFs make it easy to know where the money is invested,” Nolte said in the announcement. “Consequently, both we and the participants can more easily see and track the advice and investments. In short, ETFs allow us to efficiently create broad and non-overlapping diversification of holdings. We do not have to worry about mutual fund investment style drifts, or complicated and ever-changing analyses of underlying holdings.”
According to the announcement, the company also offers plan sponsors a free analysis of their existing 401(k) investment alternatives, and a free analysis of how the employer can reduce the cost of its 401(k) plan by using a customized plan.
More information is at www.fulcrumfinancial.com .