A Unified Managed Account May Be Your Best Bet for Retirement

A unified managed account could potentially help you when saving for your retirement. This type of account has several unique features that make it desirable to those that are saving for retirement. Here are a few things to consider about the unified managed account.

Unified Managed Accounts

The idea of the unified managed account is very enticing and simple for investors. With this type of account, you can combine every type of investment that is available into a single account. For example, one investor could invest in a mutual fund, bonds and stocks from the same account. They could even have an IRA or some other type of retirement account within the unified managed account.

Asset Allocation

With this type of account, you can take advantage of asset allocation. Since you will have many different types of investments available to you, you can easily determine how much of each type of investment you want. You could choose from several preselected allocation models that are provided by your broker. You could also completely customize the investment mix to meet your unique investment goals. This feature makes it very easy for investors to reallocate their investments as needed. Since they have everything in one place, they can easily keep track of it all with easy-to-read portfolio statements.

Tax Efficiency

Having a unified managed account can also help you significantly when it comes to tax efficiency. Since you have all of your investments in one place, it is easy to identify where you can offset your gains with losses. You could also choose to invest in securities that are less tax efficient, such as small-cap stocks, by putting them in your retirement account. With this broad view of your investments, you will be able to easily identify ways to save on taxes. Your broker will also be able to provide you with assistance in this area since you have all of your investments with them.

Managed Accounts

A big benefit of this type of account is that you can have access to a qualified money manager. Previously, this benefit was only provided to accredited investors that had significant sums of money to invest. However, with the unified managed account, you can get involved much more easily. You will be able to deal with someone that has substantial expertise in the financial markets and knows how to build a portfolio. They can sit down with you and look over your unique investment goals and objectives. They can then help you come up with the perfect investment mix to help you reach those goals. It can be very helpful to have someone there beside you when planning out your investments.

High Minimums

One of the drawbacks of this type of account is that they traditionally have higher minimum investments. Although they are not as high as getting involved with a hedge fund, they are still considered high by many. This eliminates many of the potential customers that could benefit from this investment strategy. For example, you might be able to get involved with a unified managed account only if you have at least $25,000 to invest.

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