In this article we will provide a structural overview of the Apple 401(K), and the options within the plan.
Each pay period, money is deducted from an employee’s paycheck and is re-directed into Empower. Apple has hired Empower to be the custodian and recordkeeper of the Apple 401(K) plan. Apple and Empower have pre-selected 26 mutual funds for employees to choose from for the investment of their retirement savings.
Additionally, with the 401(K) plan, employees are able to transfer their funds from the Empower pre-selected funds into a self-directed account (SDA) at Charles Schwab. Although the money is shifted from the Empower funds, it does not leave the Apple 401(K) umbrella. A self-directed account provides employees greater investment selection. The SDA allows for the purchase equities, bonds, ETFs and mutual funds. Instead of 26 mutual funds to choose from at Empower, there are over 3,000 ETFs and mutual funds in the SDA at Charles Schwab.
Because our firm is a Registered Investment Advisory firm, we are able to use multiple custodians to invest our client’s monies. One of the custodians available to us is Charles Schwab. Having a custodial relationship with Charles Schwab gives us the ability to manage the retirement accounts for Apple employees.
While having more investment choices is advantageous, it can still be a daunting task knowing which investments to choose, how much to buy, when to rebalance, etc.
Should you want to learn more about how we can manage your Apple 401(K) please don’t hesitate to schedule a complimentary call by clicking here.
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