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Advice and crisis: Unprecedented volatility reveals the value of fiduciary advice

Jul 8, 2020
Empower Institute

For many Americans, the current pandemic has caused a current state of financial instability and insecurity.

To gain more insight into how investors are reacting to the historic stretch of market volatility, we analyzed data from millions of our retirement plan participants. With a focus on comparing individuals who are enrolled in Empower Advisory Services with those savers who take a do-it-yourself (DIY) approach, our research shows there is a stark contrast in behavior between these two groups.

As it turns out, Advisory Services users are more likely than DIY investors to stay the course with their long-term investment strategy.

Key findings:

  • Advisory Services users are less likely to make major self-directed allocation transfers.
  • Participants in Advisory Services are more engaged with the Empower call center.
  • For the most part, individuals in Advisory Services have remained in the program.
  • Call center volume shows those in Advisory Services are seeking concrete advice rather than “panic selling.”
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Empowering America’s Financial Journey

Empowering America’s Financial Journey carefully analyzes the behavior of approximately 4 million active defined contribution participants.

Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower Retirement for a prospectus, summary prospectus for SEC-registered products or disclosure document for unregistered products, if available, containing this information. Read each carefully before investing.

Securities, when presented, are offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment adviser, Advised Assets Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time.

Investing involves risk, including possible loss of principal.

Insurance products are issued by or offered through Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY. Guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer.

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