Managed accounts combine professional investment management with direct ownership of securities, offering customization, tax management, transparency, and personalized risk management. But investors must also consider fees, investment risks, conflicts of interest, fiduciary responsibilities, custody, and regulatory protections. The key is determining whether the benefits justify the added cost and complexity compared with simpler, lower-cost alternatives.

Annuities and guaranteed lifetime income features can be used within Qualified Default Investment Alternatives (QDIAs). We highlight recent Department of Labor guidance confirming that annuity components, when properly integrated, do not disqualify QDIAs and outlines key fiduciary considerations as retirement planning shifts from accumulation to sustainable income.

A proposed DOL rule would clarify how 401(k) fiduciaries can evaluate alternative investments. It reinforces that ERISA prudence depends on a disciplined, process driven analysis that covers fees, performance, liquidity, valuation, and complexity, rather than favoring or excluding asset classes, aiming to modernize retirement investing while maintaining protections.