Personalization at Scale: How Advisors Can Efficiently Deliver Custom Advice Through Managed Accounts

Managed account adoption is increasing dramatically as advisors see the value of providing personalized advice at scale. As part of Advisor2x’s 2021 Wealth@wor(k) Digital Series, Franklin Templeton’s Yaqub Ahmed, Strategic Retirement Partners’ Jeffrey Cullen and our very own Josh Forstater addressed the factors driving adoption including advancing technology, the convergence of retirement consulting and private wealth, and the growing demand for customization. During the 30-minute session, they also explored the importance of certain design features to ensure that your managed account offering helps drive outcomes while delivering the individualized experience today’s participants have come to expect.

Vestwell’s Partnership with Franklin Templeton in the news

Franklin Templeton has partnered with digital recordkeeping platform Vestwell to build an advisor managed account experience that will reset the bar on how advisors engage with clients. The new offering combines Franklin Templeton’s proprietary Goals Optimization Engine (GOE™) methodology with Vestwell’s modern recordkeeping infrastructure to create an entirely digital, open-architecture and cost-effective managed account solution. The offering will live natively in Vestwell’s platform, with the ability to automatically enroll participants into a personalized investment strategy.

Read our full press release here and check out some of the coverage below.

2021 Retirement Trends: Predictions for the Changing 401(k) Landscape

For a notoriously slow-moving industry, big changes to the retirement plan market are underway. As we enter 2021, our panelists—401k TV’s Founder & Editor Fred Barstein, Vestwell’s Founder & CEO Aaron Schumm, Mariner Retirement Advisors’ Founder & President David Stofer, and InvestmentNews’ Mary Beth Franklin, CFP—discussed how PEPs, ESGs, and managed accounts are creating opportunity in the 401k space.

A FEW HIGHLIGHTS FROM THE SESSION:
  • Managed accounts are high on advisor’s 2021 implementation lists – but getting them right is a different story.
  • The debate on whether PEPs will actually disrupt the industry continues.
  • Ongoing M&A activity can have big implications, so advisors should pay attention.
Learn more by reading 401k Specialist Magazine’s recap of the event below.

Vestwell Honored as a 2021 Best Place to Work by Built In

Vestwell is honored to be recognized by Built In three times this year as a “2021 Best Place to Work,” including Best Places to Work for NYC, Best Small Companies to Work For, and NYC Companies with the Best Benefits. This annual awards aims to highlight top employers across the country that continually go above and beyond for their employees, taking into account benefits, support, culture programs and initiatives.

100 Best Places to Work In NYC 2021

50 Best Small Companies to Work for in NYC 2021

50 Companies with the Best Benefits in NYC 2021

 

Interested in joining the Vestwell team? Check out our open opportunities at https://vestwell.com/jobs.

Franklin Templeton Partners with Vestwell to Deliver Advisor Managed Account Offering in a Modern Recordkeeping Construct

Thousands of financial advisors can now leverage Franklin Templeton’s Goals Optimization Engine (GOE) to provide personalized advice for their retirement plan clients

New York, NY and San Mateo, CA: January 6, 2021 — Franklin Templeton has partnered with digital recordkeeping platform Vestwell to build an advisor managed account experience that will reset the bar on how advisors engage with clients. The new offering combines Franklin Templeton’s proprietary Goals Optimization Engine (GOE™) methodology with Vestwell’s modern recordkeeping infrastructure to create an entirely digital, open-architecture and cost-effective managed account solution. The offering will live natively in Vestwell’s platform, with the ability to automatically enroll participants into a personalized investment strategy.

To date, managed accounts have been somewhat commoditized, simply added on top of existing offerings and therefore failing to provide the experience or cost-effectiveness investors deserve. With a clear market need to revolutionize the space, Vestwell and Franklin Templeton set out to build a managed account offering that is customizable, affordable, and built on a modern fintech infrastructure that benefits all users. By architecting it directly into Vestwell’s platform, Vestwell can capture data that provides participants a more personalized investment experience at each stage of their retirement journey. With a completely open-architecture fund universe and a dynamic qualified default investment alternative (QDIA) capability, advisors can craft their own unique investment programs to provide fiduciary advice while leveraging a modern fintech platform to effectively scale.

“We believe every U.S. worker and household has the right to experience financial well-being during each life phase. Enabling plan advisors to deliver goals-based, personalized, cost-effective advice to Americans in the workplace is our focus.  We want to equip advisors and investors with innovative tools and technology to achieve that goal at scale,” says Yaqub Ahmed, Head of US Retirement and Insurance at Franklin Templeton. “We’re thrilled to be working with Vestwell to deliver a managed account offering that helps advisors more effectively engage during all stages of a participant’s savings journey.”

The managed account solution allows plan sponsors to rethink their default option by choosing a dynamic investment model for each employee, rather than a traditional single target-date series. What makes a dynamic QDIA unique is that participants can be defaulted into a target-date series early in their savings journey, before being moved into a more active model as they approach, or reach, retirement. As a result, participants with more complex financial needs can get the personalized advice they need when they need it. And because of the technology efficiency, it can cost a fraction of the price of the typical managed account option.

The offering is currently in late-stage development, with an expected rollout in the first half of 2021. At that time, advisors can leverage Vestwell’s unbundled, open-architected, configurable platform to deliver their own white-labeled 401(k) with an integrated advisor managed account solution.

“We recognize the important role customized advice plays in the retirement plan ecosystem and are excited to be working with Franklin Templeton on a native managed account offering,” says Aaron Schumm, Founder & CEO of Vestwell. “Whether a plan has $500 thousand or $500 million under management, participants deserve access to a quality, personalized investment plan. With a native advisor managed account offering powered by Franklin Templeton’s Goals Optimization Engine (GOE), we can deliver on making great plans more equitable and accessible.”

About Vestwell

Vestwell is the digital recordkeeping platform bringing the 401(k) and 403(b) industry into the modern fintech era. We have rearchitected the workplace retirement chassis from the ground up and built an engine to power the $30T industry. Our customizable, open architecture, and white-labeled platform becomes a natural extension of financial services and payroll partners, while removing traditional friction points plaguing legacy recordkeeping. The result is an easier, more efficient, and all-around better experience for everyone, delivered at a fraction of the cost. Learn more at Vestwell.com and on Twitter @Vestwell.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN], is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.5 trillion in assets under management as of November 30, 2020. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

Copyright © 2021. Franklin Templeton. All rights reserved.

Media contact

Abbey Yvon
Vestwell
917.979.5358
abbey.yvon@vestwell.com

Vestwell’s 2020 Employee Retirement Trends Report in the news

In November 2020, we surveyed thousands of employees who were either using Vestwell’s platform for their retirement plan or were eligible to do so. Our 2020 Employee Retirement Trends Report explored how some of this year’s major topics, namely racial unrest, the presidential election, and the global pandemic, intersected with 401(k) plans.

Check out some of the coverage.

2020 Employee Retirement Trends Report

JUST RELEASED: 2020 Employee Retirement Trends Report: A look at 401(k) plans at the intersection of a pandemic, presidential election, and racial unrest.

Between a contentious presidential election, heightened attention to racial inequality, and, of course, a global pandemic, it’s safe to say 2020 has been a year unlike any other. In November of 2020, Vestwell surveyed over 1000 employees who were either currently leveraging its platform for their retirement plan or were eligible to do so.

Some of our key insights include:

  • Minorities such as African Americans and Hispanics/Latinos typically save at lower rates for retirement, even though they generally align with Caucasians regarding how much they believe they should be putting away. When looking at Caucasian respondents, almost 40% have $50k+ saved versus only 16% of Hispanics/Latinos and 11% of African Americans.
  • Employees are generally open to plan advisors reaching out to them, with 70% of respondents saying they welcomed their advice when contacted. However, only 41% of participants surveyed said an advisor reached out to them over the past 12 months.
  • Despite the pandemic putting millions of Americans in tight financial situations, interactions with their 401(k) accounts remained relatively stable. Only 7% of respondents took out a loan, hardship distribution, or both. However, 40% of those who leveraged these funds said it was related to COVID-19.

Download the full report below.

 

Industry Veteran Richard Tatum Joins Vestwell as President of Retirement Services

Former CEO of TPA Avintus and executive of FuturePlan by Ascensus brings 20+ years of retirement experience

New York, NY (December 15, 2020)—Vestwell, the digital recordkeeping platform bringing the 401(k) and 403(b) industry into the modern fintech era, today announced Richard Tatum as its President of Retirement Services. Tatum will report to the firm’s CEO, Aaron Schumm, and will be responsible for further scaling the platform operations, administration and client services as Vestwell continues to advance through exponential growth.

Tatum started his career in the 401(k) industry more than 20 years ago, and brings with him extensive expertise in plan design, administration, and payroll integration. Prior to joining Vestwell, Tatum was the president and CEO of Avintus, a third-party administrator (TPA) firm he joined in 1998. Under his leadership at Avintus, the TPA service division grew into a regional powerhouse while also expanding its service suite to include payroll, human resource, and 3(16) fiduciary outsourcing solutions. In 2018, the firm was acquired by Ascensus under their TPA Solutions division. Following the acquisition, Tatum became a Divisional Vice President, where he was responsible for sales in FuturePlan by Ascensus’ Southern Division.

“I’ve been following Vestwell since the firm’s inception and have always been inspired by their mission to make retirement more accessible,” says Tatum. “It’s an honor to join this incredibly talented team and I’m excited to roll up my sleeves at Vestwell and continue innovating the retirement industry for the better.”

Vestwell is quickly establishing itself as the new standard in workplace investment and savings programs, leading through technology to create scale in a space plagued by inefficiencies. During this phase of hyper-expansion, it’s imperative that the servicing and operations engines not only support the firm’s growth trajectory, but also provide users with the experience they’ve come to expect and deserve. As President of Retirement Services, Tatum will immerse himself in the firm’s ecosystem of partners — which includes global financial services companies across financial advisors, asset managers, and insurance providers, as well as payroll providers, company plan sponsors, and participating employees — to influence the design and deployment of a world-class servicing department.

“We are only as good as our people, which makes us all the more excited to welcome Richard as a member of Vestwell’s executive leadership team,” said Vestwell CEO Aaron Schumm. “Richard’s unique background as both an entrepreneur and industry executive makes him the perfect person for this role. He’s been close to this business since it was only an idea in my head. His knowledge and experience in 3(16) administration, payroll integration, and business innovation will be a tremendous asset to Vestwell and the companies we serve.”

Tatum holds a Bachelor of Science in Finance and Business Management from Lipscomb University.

ABOUT VESTWELL

Vestwell is the digital recordkeeping platform bringing the 401(k) and 403(b) industry into the modern Fintech era. We have rearchitected the workplace retirement offering from the ground up and built an engine to power the $30T industry. Our customizable, open architecture, and white-labeled platform becomes a natural extension of financial services and payroll partners, while removing traditional friction points plaguing legacy recordkeeping. The result is an easier, more efficient, and all-around better experience for everyone, delivered at a fraction of the cost. Learn more at vestwell.com and on Twitter @Vestwell.

MEDIA CONTACT

Abbey Yvon

Senior Vice President, Marketing

Abbey.Yvon@vestwell.com

 

Envestnet Introduces New Retirement Plan Solutions for Advisors: Tech Roundup

Envestnet has teamed with Vestwell to offer turnkey retirement plan solutions to financial advisors.

Vestwell is a digital recordkeeping platform that specializes in 401(k) and 403(b) plans. Through the new collaboration, advisors who use Vestwell’s platform can now access Envestnet’s 3(38) investment management services through Envestnet Retirement Solutions to provide clients with a turnkey solution.

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