401(k) Specialist Issue 4 - 2017 - 29

401(k) PRACTICE
" When access to data is taken out of the equation, meaning it's
ubiquitous and available to those authorized in the industry, it allows for
more of a focus on the things that matter and where advisors can really
make a difference, which include consulting, general support services
and to illustrate a better outcome story through superior software. "
Doing so, he claims, would result in
better retention, as well as better business
building and scalability, one reason he
(and others) are calling for a " Switzerland
account " where record keepers feel no conflict
in sending plan level data.
" When access to data is taken out of the
equation, meaning it's ubiquitous and available
to those authorized in the industry, it
allows for more of a focus on the things that
matter and where advisors can really make a
difference, which include consulting, general
support services and to illustrate a better
outcome story through superior software. "
Not surprisingly, Fluent's flagship product,
UtopiaAdvisor, is an advisor tool kit
that's data-driven, all of which is derived
from a single source across all plan review
practices, something Zimmer says, " mitigates
risk and simplifies processes. "
" Our tools capture actions and activity,
and expedite comments and meeting
notes into aggregated records. It includes
the conversation, and any imagery, which
is reflected in reports. In today's litigious
environment, now capped with the DOL
fiduciary rule and with lawyers lining their
pockets, this is the automation of evidence.
" Not to be George Orwell, " he concludes,
" but aggregated information of this
type is good practice management. "
The Problem with Patchwork
Of course, the lack of technology uptake
might not be all advisors' fault, and Aaron
Klein is almost as stark as Sheridan Road's
O'Shaughnessy when describing the state of
retirement plan offerings.
" I think the industry has been failing
advisors in its delivery of 401(k) solutions, "
says Klein, CEO of Riskalyze, the California-based
tech company built on behavioral
finance precepts. " The current state of the
401(k) industry is a patchwork quilt, and it's
such a hassle that many advisors have quit
on advising on 401(k)s altogether. "
While we might quibble with his conclusion,
the offerings could always be better.
Last year, Riskalyze took it upon itself to
develop and release Autopilot for Retirement
Plans. It's a variation of its popular
Autopilot platform that includes the " Risk
Number " concept it routinely trumpets,
meant to simplify and quantify the appropriate
amount of risk for a given participant's
portfolio.
The company says Autopilot for Retirement
Plans is " the first risk alignment
platform that advisors can use to automate
the matching of 401(k), 457 and 403B
participants with investment allocations. "
The service allows financial advisors to deliver
" advice at scale " to the desktops and
mobile devices of plan participants with
just a few clicks.
More recently, the company announced a
joint offering with investing and technology
company Vestwell. The targeted team effort,
which they dubbed Riskalyze Retirement
Solutions, allows advisors to access a new
version of Vestwell's retirement planning
portal on the Riskalyze platform.
Advisors will be able to log in to generate
401(k) proposals and onboard clients electronically.
In addition, 401(k) plan participants
will have access to pinpoint their own
" Risk Number " to help them get matched
with the right asset allocation.
In addition to Vestwell's 3(38) investment
management services, the new platform will
include access to several of the asset managers
in Riskalyze's Autopilot Partner Store.
" We created Vestwell with the sole intent of
really enabling advisors, through technology,
to better serve clients, and to do it with scale, "
says Aaron Schumm, the company's CEO.
Schumm certainly knows a bit about
technology, having co-founded tech powerhouse
FolioDynamix, which he sold in
2014.
In a nod to small businesses as the engine
of the American economy, he argues that " If
you look at a small-to-medium-size business
space, 90 percent of defined contribution
plans in the marketplace are at $5 million
and below. Fully 98 percent are at $20 million
to $25 million and down. "
Which is why he so vehemently preaches
the need for scale, and technology's role in
achieving it. It's the reason Vestwell created
a platform to engage advisors, plan sponsors
and participants through one unified technology.
The platform allows them to login
and quickly design a customized retirement
plan, sometimes in a matter of minutes, with
known products with which participants
feel comfortable.
" Part of the problem today is that people
get scared, and they might worry about
the quality of their advice. But to be able
to do so with confidence, where they have
fiduciary backing behind it through technology,
it really changes the construct of the
conversation. "
ISSUE 4 2017 | 401kSpecialist.com
29
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401(k) Specialist Issue 4 - 2017

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