The insurance companies and investment houses were the first to offer daily valuation recordkeeping. In order to use their services, the plan was confined to investing in a small selection of mutual funds. Most insurance companies re-priced the mutual funds in their product to build in fees and expenses. These products carry high fees and surrender charges.
We use mutual fund offerings of TD Ameritrade and Charles Schwab. These custodians provide the capability of electronic trading for our daily valuation services. The mutual funds offered can be selected from a universe of thousands of funds that are mostly available to the general investing public.
Because of the large selection, we can monitor and replace funds that are underperforming our benchmarks. This Open Architecture provides us with the flexibility to move among funds based on performance and other factors.
We can select funds that have no loads on each contribution and there are no surrender charges for liquidation. Some of the best funds may have short term redemption charges, but the decision to include or exclude them is completely the trustee’s, who will be advised by an adviser of Fidelity Federal Planning Corp.