Recent Market Volatility Reinforces that Employees Need More Retirement Help
PALO ALTO, Calif., December 17, 2008 – Financial Engines, a leader in providing retirement help, just marked its 10-year anniversary of providing independent advisory services to employees planning for retirement. The company launched its first advice service in October 1998 as it set out to accomplish the vision of its founder, Nobel-Laureate William F. Sharpe: To make high-quality investment advice widely available. Today, Financial Engines works with more than 750 large employers (including 114 of the Fortune 500 and 8 of the Fortune 20) and eight of the largest 401(k) providers, including ACS, Fidelity Investments, Hewitt, ING, JPMorgan, Mercer, T. Rowe Price and Vanguard. As a result, over one million people have used Financial Engines online advice or have their 401(k) accounts professionally managed by the company.
"We were founded on the early recognition that people desperately needed retirement help to get them to a secure retirement," explained Jeff Maggioncalda, president and CEO of Financial Engines. "At the time, there was no one in the marketplace helping the average investor, and we saw an opportunity to truly make a difference in people's lives. While we have helped millions of people in the last ten years, the recent market volatility clearly demonstrates that investors of all sorts still need more retirement help."
Early on in its history, Financial Engines realized that technology would be key to developing high-quality advice that could reach millions of people. Since introducing its first service of online retirement advice in 1998, Financial Engines continues to lead in developing new services and enhanced functionality. Soon after offering 401(k) advice, the company broadened its focus to enable a total portfolio view, advising not only multiple tax-deferred accounts but also taxable accounts. In 2004, the company began offering paper-based personal retirement evaluations to help 401(k) participants get a sense of how well they are doing against their retirement goals. Also in 2004, Financial Engines was one of the first to offer managed accounts, including establishing an Advisor Center, to help those who don't want to manage their 401(k)s themselves and prefer someone they can talk to who will do it for them.
"Advisory services in 401(k) plans are now standard thanks to leading companies who felt strongly about helping their people and public policy changes by Congress and the Department of Labor that encouraged employers to offer more help," said Maggioncalda. "Financial Engines has been at the forefront of providing quality independent help for 401(k) participants, and remains committed to helping all plan participants achieve their retirement goals."
About Financial Engines
Financial Engines is a leading provider of independent investment advice and managed accounts to defined contribution plans. Founded by Nobel Prize-winning economist, William F. Sharpe, Financial Engines serves millions of employees at many of America's largest corporations. Patented advice technology and institutional-quality investment methodology allow Financial Engines to offer a suite of advisory services to meet the needs of a wide range of investors. For more information, please visit www.financialengines.com.
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