How Do I Make Investment Elections?

In this article, we will cover:

Selecting a Different Asset Allocation or Model Within the Same Strategy

As a participant in your plan, you always control your investments, and you are solely responsible for making your investment decisions. Vestwell does not provide legal, financial, tax, or other investment advice to any individual. Our platform enables you to change your investments using different methods.

Once you make a change, your existing balance and all future contributions—including your own contributions and any employer match or other contributions—will be updated to reflect your changes. In general, it takes approximately five business days for your changes to be reflected in your portal. The balance and allocations displayed on your saver portal will not be updated until all investments are exchanged and trades are settled. We suggest that you refrain from making any additional investment changes until the rebalancing process has been completed.

Below we will walk through adjusting the following different asset allocations:  

Adjusting Age-Based Strategies

To change to a different target date fund, adjust your intended retirement age in the input control panel. You may increase or decrease your desired retirement age to move into a different target retirement date fund. Remember, the closer you are to the date of the target date fund, the more conservative the investment mix. For example, if you select a 2030 target date fund, the combination of investments within that fund will be more conservative than the mix of investments in a 2050 target date fund.

Adjusting Age-Based Strategies in the Vestwell portal

Adjusting Risk-Based Strategies

To select a different risk model, adjust your risk tolerance in the input control panel. Select a more conservative or more aggressive strategy on the slider to invest in a different risk model.

Adjusting Risk-Based Strategies in the Vestwell portal

Adjusting Custom Allocations

To change your custom allocation, click Adjust Allocation and change the allocations of your selected investments. Select the percentage for each fund you wish to invest in. The total percentage of the funds you select must add up to 100%. When you’re finished, click Update Allocation to save your selections.

Adjusting Custom Allocations in the Vestwell portal

Adjusting Goal-Based Strategies

You can adjust your current salary, retirement age, retirement income goal, or risk tolerance to receive a new suggested allocation mix and retirement income projection from the Goals Optimization Engine (GOE). Executing the suggestions in your goal feedback gap, if any are provided, will also create an updated recommendation from GOE which may help meet your stated retirement income goal.

Adjusting Goal-Based Strategies in the Vestwell portal

Changing to a Different Strategy

When changing your investment strategy for future contributions, changes should be effective after a 2-3 business day window. To change your strategy, start by navigating to the "Overview" page. Next, select Manage Investments and then click Change Strategy.

Changing Your Investment Strategy in the Vestwell Portal

Depending on the investments selected by your plan's investment fiduciary, you will see up to four strategies:

  • Age-Based: Provide your desired retirement age in the setup wizard. You’ll be matched with the target date model that most closely approximates the year in which you plan to stop full-time or part-time employment. The asset allocation within the target date fund will become more conservative as you approach your target retirement year.
  • Risk-Based: To be placed into your chosen risk model, you may select or change your risk tolerance on the slider in the setup wizard from more conservative to more aggressive.
  • Custom Allocation: Select from the available investment options and customize your selections until you create a portfolio that is 100% allocated across your selected investments.
  • Goals-Based: Provide your desired retirement age, current income, and retirement income goal in the setup wizard. Franklin Templeton’s Goals Optimization Engine (GOE) provides a portfolio option that optimizes your chances of meeting your retirement goal using these data points and other information you may provide in your profile.

Note: If you click Continue Using Current Strategy, your investment selection will not change.

Adjusting Your Automatic Rebalancing Settings

Market fluctuations may cause some of your investments to appreciate or depreciate, so our tool, by default, will rebalance your portfolio automatically every quarter and on each occasion when you change your investment strategy. Generally, the rebalance will occur on the first day of each quarter. 

To turn this feature off, click Rebalance Settings on your "Manage Investments" page and toggle "Automatic Rebalance" to off.

Adjusting Your Automatic Rebalancing Settings in the Vestwell Portal

Toggling to Off

Rebalancing Your Portfolio

When rebalancing your portfolio, changes should take effect after a 5-6 business day window. Rebalance your portfolio through the following steps:

  1. Navigate to the "Manage Investments" page. 
  2. Click on Rebalance Settings and confirm your asset allocation.
  3. Select Apply Rebalance on the "Confirm Your One-Time Rebalance" pop-up.

Rebalancing Your Portfolio on the Vestwell Portal

Investing Future Contributions Into a New Strategy While Leaving Existing Assets in a Current Strategy

Navigate to your "Manage Investments" page and click on Rebalance Settings. Toggle "Automatic Rebalance" to off. This will prevent your existing investments from being rebalanced if you change to a new investment strategy. Next, return to your "Manage Investments" page and click Change Strategy. Select your new strategy and apply changes. All future contributions will be allocated to the new strategy, and your current holdings will remain in your previously selected strategy.

See our trading policies and procedures or review your plan's documents in the "Plan Documents" section of your portal for more information.

We hope you found this article helpful. If you need further assistance, please contact us at help@vestwell.com.