Solutions For RealSolutions For Real
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

5 Tips For When It Is Time To Quit

July 15, 2025

This Is What 1% Interest Rates Would Mean for Your Money

July 15, 2025

25 Remote Jobs That Let You Set Your Own Schedule

July 15, 2025
Facebook Twitter Instagram
Trending
  • 5 Tips For When It Is Time To Quit
  • This Is What 1% Interest Rates Would Mean for Your Money
  • 25 Remote Jobs That Let You Set Your Own Schedule
  • 10 Bills That Middle-Class Americans Can No Longer Afford
  • How (Le) Poisson Rouge Went From Idea to Music Destination
  • 13 Behaviors People Find Condescending
  • Nvidia CEO: AI Will Change Everyone’s Jobs, Including My Own
  • Charitable Planning After The Big Beautiful Bill (OBBBA) Is Different
Tuesday, July 15
Facebook Twitter Instagram
Solutions For RealSolutions For Real
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
Solutions For RealSolutions For Real
Home » Why are Collective Investment Trusts in Your Portfolio?
Investing

Why are Collective Investment Trusts in Your Portfolio?

News RoomBy News RoomAugust 8, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Every month, millions of working Americans save a portion of their paycheck into some form of retirement savings account such as a 401(k), 403(b), or IRA. While there are a lot of investment vehicles, do you know the type that your 401(k) account is being held in? If you’re saving in your employer-sponsored account, your Plan’s Fiduciaries are responsible for providing and monitoring a diverse investment menu. However, you hold the power to determine how much you want to contribute and where based on the available funds within your plan. One type of retirement investment vehicle that has been quickly growing in popularity are Collective Investment Trusts (CITs). So, what sets them apart from mutual fund investment vehicles?


What is a CIT?  

CITs are a particular saving vehicle used in investment menus offered in retirement plans. Simply, it’s a way to give individual investors inside their 401(k) plan the purchasing power of large institutions, better pricing, and more competitive investment opportunities. CITs are essentially the “Costco” or “Sam’s Club” of the investment world. They are sponsored by a bank or trust company and are regulated by the Office of the Comptroller of the Currency.

 

What Makes CITs Unique? 

All investment funds are regulated in one way or another, but CITs are regulated by the Office of the Comptroller of Currency, and as a result have fewer regulatory restrictions and also might have more leeway to invest in alternatives like hedge funds, commodities, real estate, and high-yield bonds. While they are commonly compared to another investment called mutual funds, CITs do have distinct differences. For example, CITs are usually cheaper, have more flexibility, and have fewer distribution costs compared to mutual funds. For retirement plans, we recommend using CITs that closely mirror the mutual fund version of the same investment strategy.

CITs are not for everybody, so if you do not see it in your plan’s investment line-up, don’t fret. It just means your Plan Fiduciaries determined that a CIT was not a prudent choice for your plan. When your company is considering adding investment options they’ll weigh pros and cons and determine which best aligns with the employee’s overall needs. Additionally, not all financial institutions offer CITs for their strategies.

CITs are just, one piece to your Plan’s investment menu offering. We encourage you to check out other resources on MoneyNav to learn more about how various investment strategies work and identify a mix that’s right for you.



Read the full article here

Featured
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

This Is What 1% Interest Rates Would Mean for Your Money

Burrow July 15, 2025

25 Remote Jobs That Let You Set Your Own Schedule

Make Money July 15, 2025

10 Bills That Middle-Class Americans Can No Longer Afford

Budgeting July 15, 2025

How (Le) Poisson Rouge Went From Idea to Music Destination

Make Money July 15, 2025

13 Behaviors People Find Condescending

Investing July 15, 2025

Nvidia CEO: AI Will Change Everyone’s Jobs, Including My Own

Make Money July 15, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

This Is What 1% Interest Rates Would Mean for Your Money

July 15, 20250 Views

25 Remote Jobs That Let You Set Your Own Schedule

July 15, 20250 Views

10 Bills That Middle-Class Americans Can No Longer Afford

July 15, 20250 Views

How (Le) Poisson Rouge Went From Idea to Music Destination

July 15, 20250 Views
Don't Miss

13 Behaviors People Find Condescending

By News RoomJuly 15, 2025

Everyone knows what it’s like to be around someone who just doesn’t make them feel…

Nvidia CEO: AI Will Change Everyone’s Jobs, Including My Own

July 15, 2025

Charitable Planning After The Big Beautiful Bill (OBBBA) Is Different

July 14, 2025

Walmart’s Anti-Theft Crackdown: Honest Shoppers Lose Out

July 14, 2025
About Us
About Us

Your number 1 source for the latest finance, making money, saving money and budgeting. follow us now to get the news that matters to you.

We're accepting new partnerships right now.

Email Us: [email protected]

Our Picks

5 Tips For When It Is Time To Quit

July 15, 2025

This Is What 1% Interest Rates Would Mean for Your Money

July 15, 2025

25 Remote Jobs That Let You Set Your Own Schedule

July 15, 2025
Most Popular

Allstate Takes New Approach to Return-to-Office: Coworking

November 19, 20243 Views

51 Reasons I Won’t Lend Money to Friends and Family

August 6, 20231 Views

Memorable Stories, Feuds, and Rumors That Made Ed Sullivan …

August 5, 20231 Views
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 Solutions For Real. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.