What is the difference between a traditional pooled account and a daily valuation platform?
Plans with a pooled account or group trust invest all employees’ accounts together. These accounts are valued periodically to determine each participant’s portion of the account. A plan using daily valuation also uses a group trust, but each participant’s balance is tracked in stock or mutual fund units. The price of each investment unit can be applied to the number of units owned to determine the value for that day. A telephone or internet link allows each participant to view account balances, deposits, and to direct investments.
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