The new managed account brings personalization and lifetime income to the masses
LeafHouse, iJoin, and ARS are excited to announce a new partnership to deliver personalized advice that features the State Street GTC Retirement Income Builder Series (Series) target date funds within a managed account offering.
The State Street GTC Retirement Income Builder Series combines State Street Global Advisors’ cost-efficient asset management expertise with ARS’s patent-pending lifetime income innovation to help Americans become more retirement-ready. Global Trust Company (GTC) is the fiduciary and trustee of the Series.
The Automated Personalized Portfolio™ (APP) program combines the strength of a consortium of industry partners to help enhance participant outcomes through personalized savings, steady growth, and lifetime income.
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Many Americans want a diversified retirement plan designed to their specific needs and they often look to their employer-sponsored plan to help. In fact, 78% of workers would be interested in more personalized 401(k) investment options tailored to their unique financial situation.1 Additionally, 85% believe in-plan lifetime income should be an option in their retirement plan.1 As a record-breaking number of Americans approach retirement each year the need for a solution that can meet both needs is stronger than ever.
“When 85% of your customer base is demanding something, you better consider providing it,” says Todd Kading, CEO of LeafHouse. “That is the percent of participants asked by Voice of the American Worker survey that said they would like access to an in-plan income solution.”
This solution is designed to meet both of these participant needs. The LeafHouse FlexFiduciary™ and reallocateIT™ portfolio management technologies, in conjunction with iJoin’s participant experience, creates an automated personalized portfolio. The solution’s core investment, the State Street GTC Retirement Income Builder Series, delivers growth potential, retirement risk mitigation, and a personalized lifetime income strategy by embedding ARS’ patent-pending Lifetime Income Builder into the core portfolio’s glidepath. Dimensional Fund Advisors LP will provide evidence-based investment solutions to APP clients to complement the core investment.
“This consortium of industry-leading product innovators was established to help drive better participant outcomes through participant-centric innovation,” said Dave Paulsen of ARS. “We are committed to offering participants personalized saving vehicles that also seek to deliver lifetime income, aiming to provide the tools they are asking for to help achieve their financial goals in retirement.”
APP is a technology-driven solution that provides a personalized savings and income experience for participants. LeafHouse will be the fund fulfillment and allocation technology provider as well as the participant-level fiduciary (the 3(38)). The State Street GTC Retirement Income Builder Series will be used as the core investment, providing a lifetime income strategy coupled with State Street’s low-cost investment experience. The starting cost of the APP is 7 basis points (not including investment expense).
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