We are a team of engineers and investment professionals with real world experience. We designed portfolio management software for some of the largest asset managers and traded $6 billion daily for large pension funds.3
Our portfolios are individually designed for an employee’s personal risk profile, making it more likely they stay invested. This means they are more likely to experience higher investment returns in the long run.
We select the best fund for each asset class using multiple criteria, with the employee’s best interest in mind. We have no conflicts of interest, so our funds are selected purely based on merit. We review and replace the funds every three months without any transaction costs to the plan.
We select and monitor your plan's investment choices, and have discretion to change them if they're performing poorly. Usually other providers only offer advice and don't have discretion to make changes.
Typical return of 3.17% as calculated by DALBAR. OctaveWealth return is estimated by adding outperformance for the listed portfolio features.
Portfolio allocations drift as prices move. We use rebalancing to reduce risk, which increases returns in certain market conditions. Estimate based on Unconventional Success by David Svensen.
Traditional retirement portfolios invest in three asset classes: US Equity, US Debt and International Equity. OctaveWealth portfolios are diversified across 9 asset classes. Simulations of both approaches show diversification adds 0.6% on average.
We don't chart percentage fees based on assets managed because they erode invesment growth. We estimate a 1.00% saving when compared to typical small plans that charge 1%-1.32%. (Centre for American Progress).
On average, an index investment style beats active investment management after fees. Estimate based on S&P Active Versus Passive Scorecard (SPIVA).
Investors often try to increase growth by timing the market. On average these decisions negatively impact returns versus a buy-and-hold approach, this is called the Behavior Gap. Estimate based on Friesen & Sapp.
For illustrative purposes only. This is not a prediction or guarantee of future performance, and is not based on actual client trading data. Data as of 01/01/2016.
You may be eligible to claim a $1,500 tax credit over the next three years, to help with setup/admin costs. Both admin fees and (optional) company matching contributions are tax deductible.
OctaveWealth uses state-of-the-art security measures when handling your information. Your sensitive personal information is fully encrypted and securely stored.
OctaveWealth is registered with the Securities and Exchange Commission (SEC). All investments are held in a secure trust in your name with a third-party qualified custodian. Our brokerage partner is a member of Securities Investor Protection Corporation (SIPC), which insures your company’s account up to $500,000 (including $250,000 for claims for cash).More →
1Small plans defined as 100 participants and/or $5,000,000 assets. 401k Averages Book 16th Edition
2Based on a company with 35 employees earning an average salary of $100,000, a 6% employee contribution, a 4% company match, and 7% annual investment growth. OctaveWealth Pricing is $120 base fee plus $9 per employee fee per month. Competitor Pricing is $120 base fee plus $5 employee fee per month, and a 1.28% fee on assets annually.
3Based on average daily volume from 2007-2011.
4Added investment growth is the difference in account balance of an employee paying $5/month vs. a 0.50% fee on assets managed over 30 years. This is based on an average annual return of 7% on a $10,000 annual contribution per employee (6% employee contribution, 4% employer match on a $100,000 salary).