Tech upstarts are making inroads into 401(k) plans and that’s bad news for some retirement plan advisers.
Such fledgling companies as Betterment for Business, ForUsAll, Human Interest and Vestwell, as well as more established players such as Financial Engines, are using technology to deliver services to plan sponsors and participants that traditionally are offered by human advisers.
“Where do you best service your client — plan design, product selection, education services? We become the rest of that equation around the adviser,” said Vestwell founder and CEO Aaron Schumm. Read the full article here.
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Since prospecting, selling and servicing retirement plans is such a complex, often inefficient, market, spread across many different stakeholders, it’s no surprise there has been a rise of digitally focused vendors seeking to reduce the inherent friction in building, implementing and servicing 401(k) plans. One of the more prominent is Vestwell, which calls itself the industry’s “first and only fiduciary-backed retirement platform for the financial advisor.”
Led by Founder and CEO Aaron Schumm, a serial entrepreneur who previously built and then sold FolioDynamix to a private equity firm (which then sold it to Envestnet), Vestwell still qualifies as a startup, but has recently been busy not just in finding additional capital but in partnering with advisor-focused firms like Riskalyze and Morningstar. They’ve added to their advisory board high-profile industry names like Josh Brown of Ritholtz Wealth Management and Lori Hardwick, formerly of Envestnet and Pershing, who recently founded Advisor Innovation Labs.
“Schumm says the lack of the necessary scale and structure for advisors to serve multiple retirement plans was the whole reason we built Vestwell”. Read the article here.
“Riskalyze expected to be a competitor, not a collaborator with Vestwell, at first”. More on this unique collaboration here.
“Equipping advisors and clients with a digital retirement experience that helps alleviate administrative and fiduciary burdens has been, and always will be, a top priority for Vestwell as we continue to expand our offering,” said Vestwell Founder and CEO Aaron Schumm. More January news here.
Riskalyze unveiled “the first end-to-end digital 401k experience” Wednesday at the T3 Advisor Conference. Riskalyze Retirement Solutions, powered by Vestwell, is a digital platform designed to make it easy and profitable for advisors to propose, onboard and serve 401k plans.
“Through our joint platform, Riskalyze advisors will be able to create and manage retirement accounts quickly and painlessly, while meeting all compliance needs”
See the full article here.
Vestwell, a digital retirement platform, announced it will be offering a select list of investment options under Morningstar Investment Management LLC’s 3(21) fiduciary services program to Vestwell clients.
“We’re delighted to integrate Morningstar Investment Management’s 3(21) fiduciary services program, which complements our offering and provides advisers with a diverse, highly customizable set of retirement solutions for their clients”.
Read more here.
Join Josh Brown, CEO of Ritholtz Wealth Management, and Aaron Schumm, CEO of Vestwell Holdings, as they discuss ways to grow your retirement business.
“It’s never enough to invent software. You also have to make it fit into the business world and win accounts for its users that pay the freight… which is why [this] Vestwell startup keeps making news in the [investment advisory] business”