This month’s Winners of Wealthtech interview is with Aaron Schumm, the Founder and CEO of Vestwell, an entirely new kind of digital retirement platform transforming the way plans are offered and administered — for the benefit of advisors, employers, and employees alike.
Prior to founding Vestwell, Aaron was a co-founder of FolioDynamix, a wealth management and advisory services company that powered $800 billion in assets for over 100,000 advisors. At FolioDynamix, which was sold to Envestnet in 2017, Aaron oversaw the strategy, revenue, marketing, customers and product. Aaron holds a B.S. degree in finance from the University of Illinois and an M.B.A. degree from Duke University, The Fuqua School of Business. He was named as one of 40-under-40 by InvestmentNews and WealthManagement.com’s “10 to Watch”.
Listen to the podcast here!
If you could create your own fantasy Board of Directors who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, a CO— reader asks whether it is feasible for a small business to sponsor a 401(k) plan for employees.
Ben Thomason, executive vice president of revenue at Vestwell, answers…
Companies know it’s vitally important to have the right people on board to build the business, and a solid benefits package attracts the top talent they need. However, many small businesses assume they do not have the option to offer a 401(k) retirement savings plan.
In the quest to grow their businesses, advisors find challenges in new opportunities and in managing scale. But a survey from retirement platform Vestwell finds that they’re overlooking gaps in the way they approach making their practices more efficient.
Identifying new opportunities and managing scale were cited by retirement plan advisors as the biggest issues they struggle with in growing their practice, but a new study suggests they are not taking steps to create additional efficiencies.
In “Evaluating Operational Challenges to Drive Scale and Efficiency,” 39% of advisors stated that identifying new opportunities is their biggest hurdle to growing their practice, followed by 33% who see managing scale as their biggest hurdle. Yet, an even smaller percentage are outsourcing their most basic functions, according to the study by digital platform firm Vestwell.
Consolidation of recordkeeper service providers to the defined contribution market may not yet be as torrid as some early predictions, but it’s happening.
The trend is expected to continue among the largest national recordkeepers—a list numbering about 40—and among the scores more of regional providers.
“From a pure recordkeeping standpoint, there is excess capacity,” Alexander D’Amico, a partner in McKinsey’s financial services practice, told BenefitsPRO earlier this year.
As the world’s largest custodian bank and asset servicing company, and one of the oldest banking corporations in the US through its predecessor, many would believe that the Bank of New York Mellon Corporation (BNY Mellon) is a traditional financial services company that has not kept up-to-date with digital and technology advancements and is instead tied to its legacy past.
Read more about our partnership with BNY Mellon here.
Advisers are increasingly outsourcing parts of their business to focus on growth. But a new study from Vestwell, a digital platform that allows advisers to offer and administer retirement plans, suggests many aren’t doing it with a strategic focus on the unique value they provide clients.
When Vestwell asked 420 retirement plan advisers to name the key factor that differentiates their practice from others, 75% named some form of relationship management, such as employee education or holistic wealth management.
By: Ryan W.Neal
Vestwell is honored to share we are winners of the 401(k) RETIREMENT PLAN SUPPORT: Technology category of the 2019 Wealth Management Industry Awards!
Retirement plan improvements help plan participants and plan sponsors alike. Today, retirement plan improvement in the form of Fintech is at a tipping point. Led by advances and huge investments, fintech firms are competing to solve retirement, savings, investing and debt management issues at the worksite. At the inaugural 401kTV Genie Awards held in New York City on August 22nd at the Park Lane Hotel, 401kTV revealed the three Finalists for the 401kTV Genie Technology Award from the many nominations received.
Chances for Senate passage of the Secure Act—the bipartisan bill to shore up America’s retirement system—are dwindling as the Senate’s scheduled Friday recess looms. The failure will mean a setback for advisors and broker-dealers interested in creating and branding pooled employer plans (PEPs) for the first time.
Read more here