Use this article to learn how to switch to a managed portfolio or build a custom portfolio for your Gusto 401(k) or Gusto IRA, understand how allocation changes apply, and know how long portfolio changes take to apply.
When you change your retirement portfolio, you can choose from three options.
See portfolio recommendations: Answer a series of questions about your current age, estimated retirement age, and risk tolerance. Gusto Investment Services will recommend a portfolio based on your answers
View all portfolios: Browse and compare all managed portfolios offered by Gusto Investment Services. Use the Less risky and More risky buttons to explore your options
Build a custom portfolio: Select individual funds from the full fund menu and set your own allocation percentages
Note: You can switch between managed portfolios or return to a custom portfolio at any time.
To change your retirement portfolio, choose the path that matches how you signed in.
Sign in to Gusto and go to Benefits. Under Savings, find 401(k) and select View, then select Manage 401(k).
To update the portfolio, select Change portfolio, then choose Get started.
Sign in directly at the Gusto Retirement sign-in page.
Select Portfolio to view the portfolio breakdown.
To update the portfolio, select Change portfolio, then choose Build a custom portfolio.
Follow any additional prompts, then select the button to save your changes.
Building a custom portfolio lets you choose your own mix of individual funds and set each allocation percentage yourself. Before you start, consider factors like your age, time until retirement, risk tolerance, diversification, and cost.
To build a custom portfolio, follow these steps.
Go to the Portfolio tab in the main navigation.
Click Change portfolio.
Select Build a custom portfolio. You see the full fund menu, organized by type — for example, real estate, government bonds, and equity.
Select a fund name to view its description, performance information, and a link to the fund’s full profile.
Enter your desired allocation percentage for each fund you want to add.
Once your total allocation equals 100%, select This portfolio suits my objectives.
Note: You can reallocate your custom portfolio or switch to a managed portfolio at any time.
Some retirement plan providers let you change your investment options for future deposits while keeping your current allocation for funds already contributed. At Gusto Retirement, we take a simpler approach to support positive long-term results. If you change the way your portfolio is allocated, the update affects your entire portfolio — not just future contributions.
Because your retirement account grows tax-deferred, there is no tax disadvantage to updating your allocation when you decide a change is right for you. Consider consulting a qualified financial advisor if you have questions about your specific tax situation.
When you make changes to your portfolio, we generally process any required reallocations within 1 – 3 business days from when we receive the submission. Certain scenarios may increase processing time.
Pending activity — like payroll contributions — may affect the timing of portfolio allocation updates. All account transactions need to settle before a reallocation can occur.
Because we submit trades before values (prices) are finalized at the end of the trading day, we estimate the value, and Gusto Investment Services adds a “trade buffer” to the targeted trading amount. If the sale is less than the buffered amount (undersell), we may need to sell additional securities on subsequent days.¹ In times of market volatility, this may result in a delay of when your portfolio changes apply. See the Trade Process in our Terms of Service for additional information on how Gusto Retirement handles trades.
When you change your portfolio, Gusto's system will automatically determine whether your investments must be reallocated.
If the new portfolio holds exactly the same funds and only the allocation amount changes (the percentages you have invested in each fund) a rebalance will only occur if your total portfolio drift reaches or exceeds 5%.
If the requested changes result in less than 5% drift, or less than $250 will be reallocated, no reallocation will be initiated. Instead, upcoming contributions are allocated to bring the funds in your portfolio to the new target amounts.
If your new portfolio includes any fund you don't currently hold or drops one you do, a reallocation will occur. This applies whether you switch to a different managed portfolio or build a custom one. If your fund lineup changes, your investments are reallocated regardless of your balance or drift.
Once a reallocation is fulfilled, there is a 30-calendar-day restriction before we receive and complete any further reallocations. Any requests to change your portfolio again do not take effect until this period has passed.
You can see how your Gusto 401(k) or IRA portfolio is performing at any time within the Portfolio section of your dashboard. Below is an overview of the performance markers we track for you:
Last 7 days: Your portfolio’s performance or total return over the last week.
Your all time: Your portfolio’s performance or total return since you started investing.
Current weight: This percentage shows the proportion of the portfolio the asset represents.
Number of shares: The number of shares you own in the mutual fund.
Market value: The value of your holdings in the asset.
Investment advisory services for Gusto’s 401(k) (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Gusto Investment Services, LLC, an SEC-registered investment adviser. References to “Gusto” “we” or “our” in this article specifically refer to Gusto Investments, LLC. For more information regarding fees and
services, see Gusto’s ADV 2A Brochure and Form CRS.
The information above is provided for educational purposes only and should not be construed as personal investment advice or a guarantee of performance. All investments involve risk and your investments could lose value. You are advised to consult a qualified financial adviser before relying on the information provided herein.
Past performance is not a guarantee of future return, nor is it necessarily indicative of future performance. All investments involve risk, including the potential for loss of principal. Performance is shown net of fees and reflects the reinvestment of interest and dividends.
¹ If the sales proceeds are less than the dollar amount, Gusto will sell additional securities on subsequent days until the total amount of the sales proceeds (based on the Market Close Price) equals the dollar amount. In the event your account has pending activity, trade execution m
ay be delayed until the activity settles in your account. Pending activity can include, but is not limited to, payroll contributions, processing of fees, processing of loan payments, disbursement requests, and automatic portfolio rebalancing.