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Your retirement can be 20 to 30 years or longer. Do you know how you’ll make your money last throughout those years?

During your working years, you’ve had the goal to grow your assets in preparation for retirement. As you get closer to retirement, it’s important to start thinking about how you want to spend that money or said in another way, the withdrawal strategies that best align with your personal goals. One approach is called the bucket strategy.

It involves allocating your retirement savings into three buckets:

The difference between the three buckets is the time horizon for when you’ll need to access the money and therefore, the level of risk you are able to take with those funds. The shorter your time horizon, the less room you have for error with riskier investments because you need that money to be available to you sooner rather than later. The longer your time horizon, the more risk you can take.

The idea with a three-bucket strategy is to secure one to two years of cash or liquidity needs in a more conservative, low-risk capital preservation bucket, one that is likely to maintain its value in the short term. You would then place the next three to five years of living expenses in your income bucket, which is a portfolio with moderate risk. The remainder of your portfolio would be allocated to a longer term, higher risk growth bucket designed to maximize market returns.

To leverage the three bucket strategy, you must first calculate your annual retirement spending. Look at your spending history. How much do you need to cover your essential expenses like food, shelter, healthcare, utilities, transportation, and taxes. Next, identify your discretionary expenses, including hobbies, travel, entertainment, memberships, gifts, and any charitable giving. It’s important to have a realistic picture of how much you’re spending each year. If you don’t already have a budget that you stick to, start by tracking your expenses for a few months.

Next, identify your sources of income in retirement. Some are considered lifetime income. Those you can expect to pay you as long as you live, such as:

The next type is variable income sources or sources that have a finite amount of money in them and could run out if not managed well. These include:

The last categories, any other assets that could serve as additional income sources like rental property income or receiving an inheritance. Once you have a full picture of your retirement income and
expenses, you can then allocate your retirement savings to each of the three buckets. Matching your different types of retirement income to your expenses can be helpful. Lifetime income sources like social security and pensions are often best matched with your essential expenses.

Knowing you can reliably provide food, housing, and medical expenses can ease your anxiety. But if your lifetime income sources are inadequate to cover your essential needs, you’ll have to determine how much you need to draw from your retirement plans, IRAs, or other savings that you may have. If you’d like to get started on the bucket strategy, but need guidance, then call CAPTRUST. We are here to help.

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As defined contribution plans continue to evolve. An increasing number of plan sponsors are now turning to 3(38) investment managers for help with their retirement plans. But before you can decide whether this type of relationship might be right for your organization, it’s important to know what it entails.

To better understand the role of a 3(38) investment manager. Consider what it’s like to move to a new home. When you move, you have three options:

  1. You can choose to do all the work yourself.
  2. You can ask friends and family for help.
  3. You can hire a moving company to handle the process for you.

If you choose to do everything yourself, you’ll be fully responsible for the entire process and the outcome. If you ask friends and family for help, that can handle some of the work and can offer useful suggestions on how to pack and move things, but ultimately, the decision-making and responsibility are still yours.

This is similar to hiring a 3(21) investment advisor, but if you choose to hire a moving company, that company assumes full responsibility for moving everything efficiently and for the care and safe transport of your items. Unloading this burden onto professionals gives you time and energy to focus on all the other elements of your move. This is what it’s like to hire a 3(38) investment manager.

A 3(38) investment manager is an advisor, asset manager, or trustee appointed by a retirement plan sponsor to assume responsibility for the investments in its retirement plan. The 3(38) manager can assume responsibility for managing a single fund, or can be responsible for selecting and monitoring all of the investments in the plan menu for single fund 3(38) services. Investment managers will typically handle underlying investment selection, asset allocation, rebalancing, and trade execution.

On the other hand, 3(38) services covering the entire plan menu usually include in-depth investment manager research fund selection, ongoing investment monitoring, fund change management with record keeping partners, and signing paperwork for all investment changes within the plan. This is different than a 3(21) investment advisor because 3(38) managers have the discretionary authority to make the investment changes on their own. They can pack and move all the boxes as they see fit, and they have the expertise necessary to do this effectively and efficiently.

A 3(21) advisor can only give guidance and make recommendations when serving in a 3(38) capacity. The investment manager absorbs the investment fiduciary risk from the plan sponsor for the selection and monitoring of the funds in the menu. Given the increased frequency of litigation in the retirement plan industry, this can be a meaningful delegation of risk for many organizations. Importantly, though, hiring a 3(38) does not absolve plan sponsors of all fiduciary responsibility.

Sponsors still have a fiduciary duty to monitor the firm hired as the 3(38) investment manager to ensure the manager is enacting a thorough and appropriate process. Another potential advantage is saved time for the retirement plan committee. By delegating investment monitoring and decision-making committee members can spend less time making investment decisions and more time focused on other initiatives to improve their plan.

But the decision to engage a 3(38) investment manager may not align with the needs of every sponsor. For instance, sponsors with a robust internal investment team might not require these services, and sponsors that like to have direct control over their investment decisions might find the 3(38) approach less appealing.

For sponsors that do decide to hire a 3(38) manager, due diligence is critical. Research multiple firms and evaluate their fee structures investment, selection, process, and experience serving in a 3(38) capacity.

Think you might need help moving the boxes for your retirement plan? Call CAPTRUST. Our team of institutional advisors can help you determine the best solution for your plan.

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What are Institutional Asset Pools?

Businesses and nonprofit organizations often have large asset pools, like cash or reserves, that aren’t yet designated for a specific goal or need. Typically, these rainy-day funds have grown over time and can represent a significant component of an organization’s overall financial structure. When properly managed, they may be a healthy source of capital growth.

Institutional Asset Pools, or IAPs, are usually managed by an internal investment committee or a third-party investment advisor. Some of these pools are managed conservatively with the goal of capital preservation. In other cases, the portfolio manager will aim to maximize an IAP’s earning power, which can serve to backstop an organization’s outstanding debt. A few examples of IAPs are:

Investing Institutional Cash and Asset Pools

Depending on the type of organization and the state where it operates, each institution may be subject to different regulations regarding fiduciary responsibilities. But even if the organization is not defined as a fiduciary, companies still have an ethical responsibility to manage assets prudently. Here are a few best practices to follow when considering whether and how to invest an IAP.

First, remember to keep your organization’s specific goals and needs in mind. Capital preservation in a highly conservative strategy may be the right choice, or it may be a good idea to explore opportunities for growth. What’s important is that leaders and committee members understand both the upside potential and the risks involved in investing an IAP, so that the organization can make informed decisions with appropriate short- and long-term perspective.

Second, consider how quickly your organization might need to deploy the capital. Will it need access to this money in the next month, in the next one to three years, or on a much longer time horizon? Understanding the organization’s cashflow needs and vulnerabilities will help determine which asset pools may be good candidates for investment.

Third, make sure to manage risk over time. Work to understand how the organization may be impacted by changes in IAP values before making any investment decisions. Many organizations seek to maintain certain internal capital or financial ratios. Others may be required to do so through bond indentures or covenants. Regardless, understanding how
IAP investment decisions will impact the organization’s financial risk will help its leaders make better decisions.

And fourth, take time to document key investment decisions and the reasoning behind them. For organizations that do not have a formal investment policy statement, this is a good time to write one. And for those that do, remember to review it at least once a year. These checkups will help ensure that current policy still aligns with the organization’s needs and objectives. At times, an investment committee or financial advisor may be managing institutional assets that have liabilities attached. In this case, organizations should create models that explain the conditions under which it may be appropriate to take risk, and when it is best to remain conservative.

By following these practices, organizations that are independently managing their IAPs can deliver on their fiduciary responsibilities, whether legally mandated or not. However, for organizations that want assistance, managing institutional asset pools is an easy add-on to a trusted relationship with an existing financial advisor. Whichever path you choose, organizations that manage their IAPs well are better positioned to not only protect their assets but also potentially grow them over time.

To learn more about institutional asset pools, call CAPTRUST. We’re here to help.

As financial advisors to retirement plan sponsors across the country, we know the value of financial wellness for employees. CAPTRUST at Work is designed for employers who want to help their employees reach their financial wellness goals and maximize their employee benefits. Learn more by watching this video.

To download a copy of the transcript, click here.

To download a copy of the transcript, click here.

Understanding your priorities is the foundation of working with a financial advisor. Your advisor should understand what is important to you and why. This knowledge will allow your financial plan to be tailored around your priorities. As your life and goals evolve, your advisor’s responsibility is to adapt and refine your financial plan.

Let’s take a closer look at how clearly identifying your financial aspirations can help you achieve your goals. To begin, consider what’s important to you. What makes you excited about planning and what keeps you up at night? Write down the top three to five areas of focus for you right now from this list:

If you have a partner, it’s a good idea to name your goals separately, then compare and try to find agreement on which categories matter most to both of you. Once you understand your general priorities, it’s time to dig deeper. For example, perhaps one of your top priorities is covering the cost of your children’s or grandchildren’s education.

If so, you need to consider the details. Do you want to cover just their tuition or all of their living expenses? Is it important to you that they work through college? Or would you prefer them to immerse themselves in their studies without having to work at all? What if a child doesn’t want to go to college?

Will you help them pay for a gap year instead, or pay their living expenses for a period of time while they begin working or take on a trade? These sorts of clarifications can help you define and stay aligned with your values. At regular intervals, you should revisit and clarify your goals with a financial advisor.

Each person’s situation is unique, and the aim is to provide tailored solutions that meet your specific needs. When done well, the wealth planning process meets clients where they are, financially and emotionally. By exploring your financial priorities, you’ll not just have a clear plan and a better chance of meeting your goals, you may also uncover goals you didn’t know you had.

For help, call CAPTRUST. Goal setting is one of the very first steps in every one of our client relationships.

Nonprofits are increasingly opting for CIO outsourcing–in other words, looking beyond their organization for a chief investment officer to manage their portfolios. Here’s why it may be a good idea to consider these nonprofit investment advisors.

Transcript:
An increasing number of endowments and foundations are now delegating their investment management to an outsourced chief investment officer, OCIO.

An OCIO can be especially helpful to nonprofits with limited staff, limited investment expertise, or highly specialized investment needs. But it’s important to know the benefits and considerations before deciding whether OCIO is the right choice for your organization.

An outsourced chief investment officer is a professional advisor or advisory firm hired by a nonprofit to manage its investment portfolio and make strategic investment decisions on the organization’s behalf. Typically, an OCIO provides day-to-day management of the organization’s investment program, allowing nonprofit leaders to focus on their mission. The OCIO has investment discretion and is directly accountable for performance. That’s why you might hear the OCIO relationship described as discretionary portfolio management.

Most nonprofits have a limited number of, or sometimes no, full-time staff who can focus on investments. So it can be hugely helpful to have a professional investment manager working on your behalf. As a co-fiduciary, the OCIO is bound to act in the best interest of organizations and their beneficiaries. The OCIO services often include portfolio analysis, management, and trading, investment policy statement development, research and selection of investment managers, regular performance reporting, and tactical or strategic asset allocation. For many nonprofits, handing these tasks over to a trusted partner is a welcome sigh of relief.

However, engaging in OCIO might not be the right move for every nonprofit organization. For instance, institutions with a strong, capable, and well-resourced internal investment team might not need one. And institutions that prefer to have direct control over their investment decisions will probably find an OCIO less appealing.

If you decide to engage in OCIO, due diligence is key. Research multiple firms, explore their fees, reporting schedules, track records, and stability. Institutions with highly specialized investment requirements will need an OCIO with robust industry expertise to meet their specific needs. You may also want to gauge how well the OCIO will integrate with your organization’s existing governance structure and communication channels. Ultimately, the decision to hire an OCIO should be based on careful evaluation of your organization’s needs, objectives, and resources. Making a well-informed decision can lead to more efficient and effective portfolio management that is better aligned with your institution’s short and long-term objectives.

To better understand whether an OCIO is right for your organization, call CAPTRUST. Our nationwide team of institutional advisors can help you decide the next steps forward.

To download a copy of the transcript, click here.

To download a copy of the transcript, click here.

To download a copy of the transcript, click here.

When you’re designing or redesigning an investment lineup for your employer sponsored retirement plan, there is no one size fits all solution, but there are a few best practices you can follow to make sure your investment menu aligns with your participants’ needs and goals.

As a retirement plan sponsor, choosing which investments you will offer to participants is a critical part of designing your plan. Thoughtful investment menus can increase participation and have a positive impact on employees’ retirement outcomes. When designing your unique lineup, here are five key guidelines to keep in mind. First, consider offering a range of investment options that cater to different types of investors. Of course, you have a fiduciary duty to help participants diversify their investments, but how you do that can vary depending on your philosophy as a committee. For instance, you may want to give participants access to domestic equity, but will you choose to do that via active management, passive management, or a combination of the two? Will you separate your large cap strategy from your mid and small cap strategy? Or will you offer a white label fund that combines all three market caps into one investment option? You may choose to make these decisions yourself or work with a financial advisor.

Second, keep things simple. While it’s important to offer diverse options, it’s also important to make sure that your menu is streamlined and easy to understand. Participants should be able to quickly and easily identify which investments are best suited to their needs. If your lineup is overwhelming or confusing, you could see participation decrease. Try to simplify and organize investment choices in ways that are easy to navigate. For instance, you might group investments by time horizon or by risk. To understand what participants want, consider asking them to self-select their level of engagement, their time horizon, and their goals. Risk tolerance questionnaires are one way to help guide participants through the selection process. However, more plan sponsors are now offering one-on-one participant advice sessions in addition to online tools and resources to help participants navigate their investment options.

Another best practice is to offer a QDIA, or qualified default investment alternative. If a participant doesn’t specify how they want their money invested, it is automatically placed into the plan’s QDIA. While most plan sponsors utilize target date funds as their QDIA option, more are considering a hybrid approach that uses target date funds for younger participants and moves to a managed account for older participants who may require more customization.

Third, remember to account for all types of investors. While some will want to set it and forget it with automatic features, others will want to make their own educated investment decisions by periodically updating their asset allocations. A robust menu should include a range of investment options across different asset classes so that each participant can create their own diversified strategy. It’s also a good idea to include both passive and active options for investors who want broad market exposure at a lower price point.

For your most active participants, you might also consider offering a self-directed brokerage option that is separate from the broader investment menu. A brokerage window provides each participant with access to a larger range of investment options, allowing them to select and change allocations at their own risk. As the plan sponsor, you can typically set broad limits as to how much participants can invest and what kind of investment options are offered.

Fourth, regularly review all investment options to be sure they are performing well and continuing to meet the needs of plan participants. It’s important to stay up to date on which investment options are available as this can change over time, as can the needs of your participants.

Lastly, remember that a well-designed retirement plan menu should be accompanied by educational resources to help participants make informed investment decisions with appropriate tools and advice like savings calculators, retirement planning tools, and access to financial advisors, participants can learn to make the most of the retirement plan lineup that you have designed.

Want help determining which investment options might be best for your participants? Call CAPTRUST. Our team of retirement plan advisors can help you navigate menu design and more.

CAPTRUST offers a best-in-class client experience, using local financial advisors with highly specialized expertise and supporting them with centralized, nationwide resources. In this video, learn about the suite of resources CAPTRUST wealth advisors have available to them—from industry-leading cybersecurity and centralized trading to performance reporting tools and wealth planning technology, including our proprietary planning software, WealthView.

Video Synopsis – “CAPTRUST Wealth Management Services Overview”

What sets CAPTRUST apart? In this in-depth overview, leaders and advisors from across the firm share the infrastructure, values, and team dynamics that power the CAPTRUST experience.

1. Built Around the Client, Not the Company

CAPTRUST was designed from the ground up to work backward from the client’s needs. Rather than fitting clients into a one-size-fits-all model, the firm built its platform to support advisors in solving real financial challenges, with tools and resources tailored to individual goals.

2. Centralized Strength, Local Expertise

While each advisor is a local expert, they’re backed by a nationwide bench of over 700 professionals specializing in trading, research, operations, performance reporting, and financial planning. This centralized model ensures consistency and efficiency while allowing advisors to focus on what matters most—client relationships.

3. Comprehensive Resources Under One Roof

From best-in-class planning software (WealthView) to a robust client services team, CAPTRUST brings together the technical, operational, and human expertise needed to support complex financial lives. Specialized teams cover everything from U.S. and international equity research to trust and estate planning.

4. A Culture of Ownership and Continuous Improvement

Every CAPTRUST employee has the opportunity to be an owner in the firm, fostering a culture of shared accountability and long-term commitment. As Rush Benton explains, clients benefit when they’re working with someone who owns the business—because that alignment drives better service and results.

5. Investing in the Future

CAPTRUST reinvests half of its earnings annually into the business, fueling innovation in technology, cybersecurity, and client services. This approach not only ensures resiliency through changing markets—it also keeps the firm positioned at the forefront of the industry.

Key Takeaway:

CAPTRUST wealth advisors aren’t operating in isolation—they’re part of a deeply connected, highly resourced team built to deliver confident outcomes and exceptional client service. This video illustrates how scale, specialization, and culture converge to create a standout wealth management experience.

To download a copy of the transcript, click here.

To download a copy of the transcript, click here.

Video Synopsis—“Planning for Long-Term Care”

As life expectancy rises, so do the odds—and the price tag—of needing extended care. In this short explainer, CAPTRUST breaks down what “long-term care” actually means, how much it can cost, and three main ways to pay for it.

Why It Matters

Likelihood: Today’s 65-year-olds face a nearly 70 percent chance of requiring help with daily activities such as bathing, dressing, or meal prep.

Price tag: A private nursing-home room averages $108,000+ per year; hiring an in-home aide can top $60,000 annually.

Three Funding Paths

Traditional long-term-care (LTC) insurance

Pros: Dedicated pool of dollars; optional inflation protection; preserves retirement savings.

Cons: Premiums climb sharply with age and health changes—buying earlier locks in lower rates.

Hybrid policies (life + LTC)

Combines a death benefit with access to LTC coverage. If care isn’t needed, heirs collect the payout. Expect higher premiums than standalone LTC insurance, but some like the “use it or leave it” flexibility.

Self-funding (“self-insurance”)

Paying out of pocket lets you keep full control of your assets—until a prolonged illness, market downturn, or unexpected expense erodes them. Best suited to households with ample liquid net worth and a solid investment plan.

Key Considerations

Timing: The younger and healthier you are, the more affordable traditional or hybrid coverage becomes.

Liquidity: Even with plenty of real estate or business equity, you’ll need accessible cash to cover care on short notice.

Estate impact: Large insurance payouts kept inside your estate could trigger estate-tax exposure; an irrevocable trust may help.

Spousal coordination: Weigh how benefits—or asset drawdowns—would affect your partner’s future needs.

Next Step: A financial adviser can model different cost scenarios, evaluate policy quotes, and weave long-term-care planning into your broader retirement strategy. CAPTRUST is ready to help you decide which mix—insurance, self-funding, or both—fits your goals and peace of mind.