Products March 13, 2017

401kFiduciaryOptimizer Makes Significant Database Expansion

In addition to 45,000 plans that were available in the prospecting system, the firm has added another 40,000 “to supercharge sales efforts.”
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The newly expanded 401kFidicuaryOptimizer program from RiXtrema now includes more than 85,000 plans in its sales and prospecting support database.

In addition to existing plans in the “Plan Screener” database, users will now see plans that have a “Request Plan” button next to them. If the adviser requests a plan, it will be added to the database within 24 hours, “allowing advisers to get started on diagnostics for that plan sponsor right away.”

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“Best of all, for any plan that you request, you will be the first advisor to diagnose and solve plan sponsor’s potentially dangerous problems,” the firm says. “401kFO uses sophisticated quant algorithms to optimize three things that get the response of a CFO: significant cost savings, significant performance improvements and fiduciary liability and best practices support.”

The firm adds that “CFOs are especially willing to talk because 401kFiduciaryOptimizer’s reports are novel to them.”

More information is available here.  

Data & Research March 13, 2017

Americans Less Confident About Retirement Prospects

A large number of Americans are lagging behind in retirement savings, but adviser interaction and effective digital tools may reverse this trend.
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As market volatility persists and a wealth of research indicates Americans would need to save more to retire comfortably, many are trailing behind. According to the latest Financial Freedom Survey by Capital One Investing, just 62% of Americans feel confident they will retire comfortably. That figure is down from 64%, which was recorded during the firm’s previous survey.

The new study found that a range of factors contribute to Americans’ retirement-planning flaws including lack of knowledge and experience (51%), distrust of the financial services industry (49%), and lack of pricing transparency (45%).

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Moreover, inertia is preventing a large number of Americans from saving adequately for retirement. The survey found that although 65% are dedicating portions of their income toward retirement saving, only 49% have a long-term financial plan—highlighting Americans’ need for overall financial wellness and money-management skills. Meanwhile, 32% aren’t saving at all. And even though 39% believe people should be saving at least 15% of their income for retirement, only 13% are doing so.

The Capital One Investing study also offers some insight into how Americans are saving for retirement and their preferences for adviser interaction. The study found technology is a key factor in financial planning. Respondents value financial information aggregators (83%), retirement calculators (73%), technology to connect with advisers (71%), human-digital hybrid solutions (69%), and robo-advisers (56%).

“Today’s investors need a combination of great digital tools and unbiased advice to navigate the markets and get on a path to action and confidence,” says Yvette Butler, president of Capital One Investing. “We’re committed to enabling smart investing habits by delivering straightforward, accessible tools and experiences that leverage the best of technology and human advice.”

When it comes to extreme market volatility, however, the majority (74%) prefer human interaction with advisers. The degree to which investors would seek help from human advisers during times of heightened market volatility seems to vary among generations. Sixty-nine percent of Millennials said they would seek human interaction, while 75% of Generation Xers and 74% of Baby Boomers reported the same.

Capital One Investing’s latest Financial Freedom Survey was conducted with input from more than 1,000 adults ages 18 or older living in the continental United States. More information about the findings can be found at CapitalOne.com

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