Auto investing, How it works. When you enroll in Icon, your money will be automatically placed into a target date fund that corresponds to your age. A target date fund is a mix of investments that automatically adjusts to help make sure your portfolio is allocated based on your age. By automatically placing your money in a target date fund, we remove the burden of building your own portfolio–it’s already done.
A common practice. The process of automatically placing accounts into a target date fund is common practice in 401(k)’s. This plan feature has proven to be very helpful for millions of people who don’t have the time, expertise, or interest in building and maintaining a diversified portfolio.
How target date funds work. The great thing about a target date fund is that it adapts over time. It’s built to be a mix of investments appropriate to your age. As you get older, it automatically adjusts to help make sure your mix of investments is on target for when you reach retirement. You need to be in only one target date fund to have a diversified portfolio.
Icon’s target date funds. The target date funds in Icon were selected by Icon’s independent advisory board, which consists of members who are all experts in investing and portfolio management. The target date funds in our plan is managed by State Street Global Advisors (SSGA). SSGA is one of the world’s largest, oldest, and most respected asset managers.
Of course, you can always opt out of the target date fund and mix your own portfolio by selecting investments from a menu of funds available through Icon.
As a point of comparison, the average fees on a target date fund are 0.55%.
Icon’s target date fund has a low flat fee of just 0.09%. In addition, because a target date fund is a mix of funds that is professionally managed, you don’t need the added cost of an investment advisor.