What is a SMA?

Also known as a SMA (“Separately Managed Account”), is a single investment account comprised of individual stocks, bonds, cash or other securities, tailored to achieve specific investment objectives.

Your portfolio manager oversees the investments according to your specific investment objectives and in an investment style with which you are comfortable.  Put simply, a SMA is for demanding investors who:
  • Seek the comfort of professional investment guidance and a heightened level of personal service
  • Still want to take an active role in their financial life
  • Desire the flexibility to invest in different strategies or styles, while seeking the liquidity and potential tax benefits that come from owning individual securities in separate accounts, versus mutual funds
  • May want a single fee to cover ALL account costs, including trading costs and performance reporting.
  • Low-cost, transparency and 24/7 online access

For those with more than $100,000 a SMA may be the smart way to manage portfolio assets, due to lower costs, greater tax efficiency and transparency.

Employers need a 401k’s to attract millennial talent

A study from Fisher Investments 401(k) Solutions found that 80 percent of millennials say they would prefer to work for a company that offers a 401k plan, dispelling a commonly-held belief that millennials are not as interested in 401k plans as other generations.

However, despite their high levels of interest, millennials also tend to be (understandably) less educated on the ins and outs of retirement planning, with the same percent (80) failing Fisher’s 401(k) IQ in the Workplace Quiz. That’s higher than the 70 percent of general respondents who earlier failed the same workplace quiz, missing at least three of the nine basic questions.

“We’re encouraged that the vast majority of millennials recognize that 401k plans can be indispensable to meeting their long-term savings goals,” Nathan Fisher, managing director and founder of Fisher Investments 401(k) Solutions, said in a statement. “However, when you get down to the nuts and bolts of planning, it becomes clear there’s an education gap”.

The Fisher study also found that millennials are more likely than other groups to receive and trust information about retirement planning from individual contacts, whether they be friends, relatives or co-workers, countering the view that younger savers are more reliant on internet-based information and advice.

In fact, nearly one in three millennials trust a friend or family member’s advice on retirement planning most. In keeping with their desire for individual attention, millennials are more likely than other age groups to wish their retirement provider would reach out to them personally, and to know more about their company’s 401k plans.

Millennials at small businesses (which Fisher defines as those with between 5 and 200 employees) tend to be less engaged in retirement planning, with nearly one in four saying they are not enrolled in a plan.

Those who are enrolled in a plan are also less likely to receive information from their 401k provider than their counterparts at larger companies, and, perhaps most troubling, they are less likely to trust the 401k plan offered by their employer.

The survey also found some stark differences between millennial women and men. Millennial women are much less confident in their ability to pick the right investments and save enough for retirement than their male peers. They are also less likely to be enrolled in their company’s 401k plan and more likely to fail the 401(k) IQ Quiz.

“This study really strikes at the heart of the assumptions many employers and planners have about the millennial generation,” Fisher continued. “While they are very technologically savvy, millennials are in fact the most likely generation to seek individual rather than web-based information about their retirement plans. We were also surprised to find that a significant gender gap continues to exist when it comes to investing and retirement planning, something that employers and 401k providers must address.”



NAMCOA has updated a “SMA vs Mutual Funds” educational piece outlining the differences of SMAs (“Separately Managed Accounts”) and Mutual Funds. It can viewed by clicking here.

This education piece has a long history, originally prepared by Paul McIntyre in 1995 when he was a Trainer at PlannerChoice in Detroit, a regional professional education firm that was dedicated to assist financial advisers transition from “commission-based” to a “fee-based” relationship with clients, with a goal to reduce portfolio costs and conflicts of interest found in commission products.

It was updated again when McIntyre was the Dean of Adviser Development in 1998 at RunMoney in San Diego, a national Separately Managed Account platform that private labeled its own SMA platform for Broker Dealers, Banks and Insurance Company’s, which later become part of Fidelity.  Versions of the educational piece were also used at UBS in early 2002 to help clients learn about their portfolio management options.

McIntyre states “The most important aspect of any marketing or content driven information piece is Education.  Investors consistently need to learn ways to reduce portfolio management expenses, gain greater tax efficiency and transparency in their portfolio to better meet financial objectives“.

CE Courses for Agents – 2017

NAMCO Benefits will be offering eight CE courses are Florida  Life, Variable and Health Agents in 2017.   All courses will be offered at $10 (ten dollar) each.  tom-cooper

These courses represent 69 credit hours of CE, Florida Agents don’t need more than 24 hours, or 20 credit hours if licensed 6 years of more.  Also up to 24 hours can be carried over to the next license term. Courses carried forward will not be counted as duplicate if taken three (3) calendar years after the initial complete date.

Click this link if you would like to download the course syllabus.

For Agents who wish to enroll, visit www.namcoce.com

Happy Thanksgiving!

The Naples Asset Management Company, LLC Office will be closed November 24th & 25th in observance of the Thanksgiving Holiday.

In awareness that the market is open on Friday we will have a member of our team here for trading purposes.

From us here at NAMCO, we wish you a wonderful and safe Holiday Weekend.

Business will resume as normal on November 28th, 2016.