Frequently Asked Questions
What is the HCM-Guided Retirement?
HCM-Guided Retirement is a model portfolio solution that offers a more personalized approach to asset allocation for plan participants. HCM offers access to the proprietary HCM Blended Risk-Based Models, or a Custom Risk-Based Model approach using cost-efficient ETF’s or Mutual Funds. HCM can provide 3(38) services to plan sponsors with either one of these options.
What does the HCM-Guided Retirement consider when managing my plan's investments?
Plan sponsors can select between our HCM Blended models which are comprised of tactical Mutual Funds, or HCM Custom models utilizing the investment options in your plan. HCM will analyze the performance history and fees/expense ratios to formulate an investment strategy for your retirement plan.
What funds will be offered to my plan participants?
HCM-Guided Retirement will determine a suitable combination of funds for each of our models which are chosen based on expense ratios, MorningStar™ rating, and their performance history.
How much does HCM-Guided Retirement's service cost?
HCM provides 3(38) fiduciary services for 0.06% annually. Our HCM Blended models are available at no additional cost but do contain a small custodial charge of 2.5 to 3.5bps depending on what custodian is used on the plan. Plan sponsors looking to use the HCM Custom models will be charged 0.40% for this option (this includes custodial fees).
What are the benefits of using a managed account vs. doing it myself or a target date fund?
Most employers do not actually manage the retirement plans they offer. HCM-Guided Retirement offers professional management to plan participants to potentially help grow and maximize their long-term returns. In addition, our models have integrated downside risk management that monitors market conditions to strive to sidestep any major market downturn. This is key differentiator to a buy and hold strategy as well as target date funds, that are not designed to adjust investment allocations or move to less risky investments during times of market stress or turmoil.
If I have a question, how can I get in contact with someone?
Please email, firstname.lastname@example.org or call our customer support line, 800.314.0150.
How often will my account be re-balanced, and what are the benefits of mitigating risk on the downside?
The HCM-Guided Retirement’s models actively manage participant accounts and are designed to potentially rebalance up to four times a year and/or in the event the HCM-BuyLine® has a major sell or buy signal (dependent on the plans limitations).
What is the HCM-BuyLine®?
The HCM-BuyLine® is Howard Capital Management’s proprietary stoploss indicator designed to preserve capital in market downturns while seeking to outperform the major indices during market upturns. In use since 1996, the indicator is a math-based, quantitative strategy that aims to take the emotion out of investing.
Can I opt out of the service?
Yes, you can opt out of the service by electing to choose your own investment options.
Who is Howard Capital Management, Inc.?
Howard Capital Management, Inc. (HCM) is an SEC-registered investment advisory firm which offers professional money management to private clients, registered investment advisors, and broker-dealers since 1999. The vision originated during the 1987 stock market crash with the opinion that incurring financially devastating losses from market volatility may not be necessary. HCM developed a methodology with the objective to help clients preserve capital during market downturns. The services offered by HCM includes separately managed accounts, retirement tools, as well as proprietary mutual funds and ETFs.
What makes HCM-Guided Retirement different than other 3(38) services?
HCM-Guided Retirement provides plans with a combination of fund management experience and proprietary technology with the stoploss indicator, the HCM-BuyLine®. HCM strives to provide the most suitable allocations for retirement account holders. Rather than participants setting and forgetting their account investments and allocations, HCM-Guided Retirement acts on your behalf to provide your participants a more personalized and planned future.
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All investments are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares when redeemed may be worth more or less than their original costs. There are unique potential risks associated with the specific asset classes that a Mutual Fund or ETF represents. You should carefully consider the risk, charges, and expenses of an ETF prior to investing. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stoploss order that automatically sells securities in the portfolio at a certain price. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stoploss order that automatically sells securities in the portfolio at a certain price. Howard Capital Management, Inc. (“HCM”) is registered with the SEC and only transacts business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability. The HCM Guided Retirement Solution is a web-based Risk Assessment Tool intended to help clients invest in their employer’s 401(k) or similar defined contribution plan. Clients receive discretionary investment management from the HCM Guided Retirement Solution while maintaining total control over their personal accounts. The goal is to reduce risk by taking proactive measures with company-sponsored retirement plans. Changes in investment strategies, contributions or withdrawals may materially alter the performance, strategy, and results of your portfolio. All investment strategies have the potential for profit or loss. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark for measuring the performance of a portfolio. When HCM provides investment advisory services to a retirement plan qualified under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, it does so in its capacity as a “fiduciary,” as that term is defined under Section 3(21) of ERISA. When HCM provides these services on a discretionary basis, it does so as an “investment manager,” as that term is defined under Section 3(38) of ERISA. Investing comes with risk, including the risk of loss.