Demand for Conflict-Free Advice and Management Grows
SUNNYVALE, Calif.--(BUSINESS WIRE)--May. 8, 2013--
Financial Engines (NASDAQ:FNGN), America's largest independent
registered investment advisor, today announced it is expanding its
services to include management of Individual Retirement Accounts (IRAs).
IRA management includes access to Financial Engines’ retirement income
feature, Income+. The company is now managing IRA assets for 401(k)
participants from select sponsors on multiple custodial platforms.
The expansion comes as demand for Income+, the first retirement income
solution designed specifically for 401(k) plans, remains strong. Over 70
plan sponsors have signed contracts as of March 31, 2013, representing
over $126 billion in assets and over 1.4 million participants.
“Americans entering retirement today, especially those with modest
assets, are on their own to manage unprecedented complexity and
uncertainty,” said Jeff Maggioncalda, CEO of Financial Engines. “There
is an urgent need for unbiased help and management that puts together
all retirement accounts and sources of income to make the most of what
people have saved. By offering IRA management, we are another step
closer to this vision.”
Since its inception, Financial Engines’ mission has been to provide
high-quality, independent help across an investor’s total retirement
picture regardless of account balance or where the account is held. In
2001, Financial Engines expanded its 401(k) investment advice offering
to include advice on accounts outside the 401(k), including IRAs. In
2004, the company introduced a 401(k) discretionary account management
program, which was expanded in 2011 to include Income+.
Amid unprecedented forces reshaping today’s retirement, participants are
asking for more help with retirement decisions that go beyond the
401(k), including help with management of IRA accounts. Today’s
announcement answers that call.
Financial Engines has extended its innovative Income+ methodology to
IRAs so that retirees looking to generate income from an IRA can receive
steady monthly payouts based on their household’s changing needs. This
enhancement also makes management and Income+ portable for participants
who want continued help if they decide to roll out of their 401(k) plan
or take a pension lump sum distribution.
Independence is more important than ever. The Government Accountability
Office (GAO) recently issued a report highly critical of 401(k) rollover
practices.1 The GAO found that participants are subjected to
pervasive marketing of IRAs, in many cases from their plan service
provider steering participants towards the purchase of their own retail
products and services. Financial Engines doesn’t sell investments and is
free from the product conflicts or the perception of conflicts of
interest that can arise for firms that sell products.
Financial Engines continues to extend its model of offering investment
advice and management free of product conflict. Broader IRA advice and
management leverages Financial Engines’ institutional-quality
methodology and is delivered through an open architecture framework so
participants do not need to move their accounts. Current custody
platforms include Charles Schwab and TD Ameritrade.
About Financial Engines, Inc.
Financial Engines is the nation’s largest independent investment advisor
and is committed to providing everyone the trusted retirement help they
deserve. The company helps investors with their total retirement picture
by offering personalized retirement plans for saving, investment, and
retirement income. Co-founded in 1996 by Nobel Prize-winning economist
Bill Sharpe, Financial Engines works with America’s leading employers
and retirement plan providers to make retirement help available to
millions of American workers. For more information, visit www.financialengines.com.
Financial Engines® and Retirement Help for Life® are registered
trademarks or service marks of Financial Engines, Inc. Advisory services
provided by Financial Engines Advisors L.L.C., a federally registered
investment advisor and wholly owned subsidiary of Financial Engines,
Inc. Financial Engines does not guarantee future results.
1 “401(k) Plans: Labor and IRS Could Improve the Rollover
Process for Participants”, Government Accountability Office, March 2013.
Source: Financial Engines
Diane Paul, 408-498-6797
Carley Hummel, 714-913-9942