Products October 19, 2023

Investment Product & Service Launches – 10/19/23

The Standard to roll out intellicents PEP; USAA introduces fixed-indexed annuity; SoFi Invest announces 1% IRA match; and more.

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The Standard to Roll Out Intellicents PEP

Advisory firm Intellicents Inc. has selected the Standard to roll out its intelli(k) pooled employer plan. The intelli(k) PEP offers a scalable solution for businesses with broad and flexible design capabilities.

“The program is unique in that it’s packaged with intellisteps worksite financial planning for all participants, which aligns with improving the availability of quality, affordable retirement plans to American workers,” Steve Chappell, vice president of retirement plan distribution at the Standard, said in a statement.

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The intelli(k) PEP handles both fiduciary and administrative responsibilities by removing the client from the role of plan sponsor. It bundles 3(38) investment governance and 3(16) administrative governance into a seamless packaged solution, allowing employers to upgrade offerings to employees while adding layers of fiduciary protection for the business.

“Whether you are an existing client or a prospect, have an existing plan or are starting a new plan, the intelli(k) PEP is a cost-effective, timesaving and results-oriented option for all plan sponsors to consider,” Grant Arends, co-founder and president of retirement services at Intellicents, said in a statement.

USAA Life Insurance Company Introduces Fixed-Indexed Annuity

USAA Life Insurance Co. announced the addition of a fixed-indexed annuity to its suite of retirement products. The new product is available in nearly all states and offers those planning for, or living in, retirement another option for protected savings growth.

USAA’s new annuity product can help grow retirement savings and create a guaranteed source of income in retirement by offering an interest rate based on the performance of the S&P 500, up to a certain limit, and principal protection in case of market fluctuations.

“Offering a highly competitive fixed indexed annuity product allows USAA to offer our members more choices in saving for retirement,” Bill White, senior vice president and general manager at USAA, said in a statement. “This product provides tax-deferred growth, with the potential to earn more than a traditional fixed annuity.”

USAA will host a free webinar to discuss fixed-indexed annuities as part of a retirement plan on October 25.

SoFi Invest Announces 1% IRA Match on IRA Contributions

SoFi announced SoFi Invest will offer a 1% match on all eligible IRA contributions.

The IRA Match is an extra 1% that SoFi adds to IRAs based on contributions. It does not count toward annual contribution limits, which for 2023 are $6,500 for people younger than 50, who can earn up to $65 extra. For people 50 and older, the limit is $7,500, which means they can earn up to $75 on top of their contributions.

SoFi members can earn the IRA Match on all new IRA contributions from outside accounts, as well as new contributions through ACH transfers.

SoFi Invest complements this new IRA 1% match with a full suite of investing tools and educational resources, including access to credentialed financial planners, career planners and award-winning investment tools such as SoFi Active Invest and SoFi Automated Investing.

Morgan Stanley Investment Management Expands ETF Platform With 5 Active ETFs

Morgan Stanley Investment Management announced the listing of five new exchange-traded funds on the NYSE Arca, a subsidiary of the NYSE Group Inc., which manages the New York Stock Exchange.

The latest additions to MSIM’s ETF platform are all actively managed and span asset classes with one Parametric-branded alternative income strategy, one Parametric-branded hedged equity strategy and three Eaton Vance-branded fixed-income strategies.

“Following the successful launch of MSIM’s ETF platform earlier this year, the new additions to the platform further capitalize on the deep experience of our investment teams and client-focused approach by delivering actively-managed strategies through the in-demand ETF structure,” Anthony Rochte, global head of ETFs at MSIM, said in a statement. “MSIM’s strategic vision for the ETF platform is to offer products across our businesses, asset classes, jurisdictions, and brands that address clients’ needs, and the Parametric and Eaton Vance strategies represent a significant step toward the realization of that goal.”

The five new ETFs advised by MSIM are:

  • Parametric Equity Premium Income ETF (PAPI)
  • Parametric Hedged Equity ETF (PHEQ)
  • Eaton Vance High Yield ETF (EVHY)
  • Eaton Vance Intermediate Municipal Income ETF (EVIM)
  • Eaton Vance Ultra-Short Income ETF (EVSB)
In Practice October 18, 2023

Retirement Advisor Council Launches Financial Literacy Program FinLitFuture$

The council is calling on advisers and the retirement industry to help provide financial education to underserved students in underserved communities.

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The Retirement Advisor Council has launched a new financial education volunteer collaboration initiative for underserved middle school and high school students called FinLitFuture$, according to an announcement October 10.

The council started the program to inspire youth financial literacy volunteer efforts generally and to specifically reach communities traditionally underserved for retirement plan access and engagement, says Lisa Buffington, a Retirement Advisor Council member who also serves as the chair of the RAC Financial Literacy Committee. The FinLitFuture$ program will include a curated online resource library of vetted financial literacy program materials to support advisers and other members of the retirement industry who want to teach financial literacy to students in their communities. 

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“Underserved communities or diverse communities are already tracking behind [others] relative to plan coverage or access to retirement plans,” Buffington says. “There are disparities with compensation and pay that also show themselves from a retirement savings success standpoint, and we know that these communities have expressed some concern about outliving their retirement savings. Starting with financial literacy education will help people start off with stronger footing.”

The RAC initiative provides advisers and others with educational resources and nonprofit partner connections to foster “collective volunteer and advocacy efforts,” according to the announcement. The program is seeking to work with advisers, service providers, asset managers and retirement industry associations.  

“We want key stakeholders to be aware of opportunities in their local communities. Urban and underserved communities absolutely represent a prioritized focus, certainly, [as well as] schools and community programs,” Buffington says. “The key target audience age is in middle school, high school, but not limited to that.”

Buffington says advisers can get involved by connecting with the Retirement Advisor Council through its website and by sharing updates on any financial literacy education they are doing in their communities.

“Go to our website, sign up, let us know what you’re already doing to support youth financial literacy, because we want to, No. 1, shine a light on your efforts that you’re leading with, and, No. 2, track the progress and collective impact made across the industry,” she said.

Financial advisers can also leverage FinLitFuture$ by accessing a curated repository of educational resources and vetted programs, Buffington says. The resources are free of charge, separated by topic and grade level and are available in both English and Spanish.

The organization also recommends reaching out to local organizations like the Boys & Girls Club, YMCA, YWCA or Rotary Club, or local boards of education for volunteer opportunities.

Buffington says her committee will continue to partner with nonprofit programs and groups focused on financial literacy initiatives. The committee is also aiming to get involved in financial literacy advocacy efforts through the retirement council’s government affairs committee.

“I think our biggest opportunity is to leverage the connective tissue we represent, not only as financial advisers, but across the whole industry, thinking about how to inspire financial literacy volunteer efforts across your specific communities or networks,” she said.

Formed in 2009, the Retirement Advisor Council is a national organization that advocates for successful qualified plan and participant retirement outcomes.

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