New Online Services Put You Back in Command of Your 401(k)
Summary
Now Silicon Valley startups like Jemstep and Personal Capital are using the power of statistics and software algorithms to provide the kind of data-driven advice that, in the past, was accessible only to the managers of big brokerage funds.The main point of the service is to evaluate your existing retirement portfolio and suggest changes that will optimize your risk/return ratio, balance your investments in a way that minimizes the fees and future taxes you’ll owe, and, in the end, increase your post-retirement income.“What Jemstep is designed to do is take the complexity that most of us have to live with—all of the different accounts, brokerage firms, spouses and partners, et cetera—and make sense of it and deliver a simple direction as to what to do, so you can get on with your life,” Roy says.After running 500 simulations, each assuming different portfolio mixes and market conditions (it’s called a Monte Carlo analysis), Jemstep offers an action plan for reallocating your assets.Personal Capital, based in Redwood City, CA, offers services similar to Jemstep’s, one difference being that you can use it to track your whole net worth, including your banking and credit-card accounts, rather than just your investments.
Classifications
AskAI Classifications
LabelsLinked Companies
