AdvisoryWorld and Zacks Investment Research Join Forces to Provide 401k Solutions
LOS ANGELES, CA, October 29, 2004 -- Zacks Investment Research has teamed up with AdvisoryWorld to create a new managed account solution for plan sponsors and their employees that offers not only professional investment management through Zacks, but also guidelines to help individual employees invest as much as needed to retire comfortably.
"This is a major new product for us," says Philip Wilson, president of AdvisoryWorld. Participation in the online 401k system allows financial professionals to enter available investment and asset allocation options while giving the plan participant flexibility in selecting those solutions that are best suited to his or her needs. User selections include model portfolios constructed by professionals as well as theoretically optimal solutions that will achieve their financial goals while not exceeding their downside risk parameters, and Monte Carlo simulation to show the probability of achieving their financial objectives.
This service is set for release in the first quarter of 2005. Zacks Investment Research, a well recognized money manager and provider of security information and research to the investment community will allocate and design portfolios for participants, while AdvisoryWorld will provide the application platform and analytical tools for the 401k system. Len Zacks, CEO of Zacks Investment Research said, "Our quantitative analysts have developed models that predict future returns for Mutual Funds. We are making these models available through this new system to assist 401K plan participants in improving their fund allocation decisions."
The 401k application will offer colorful easy-to-read reports to each plan participant. Analysis will be tailored to participants' financial needs and their ability or willingness to accept risk. Participants have the option of determining the portfolio allocation they desire as well as the mutual funds to be used as the investment vehicles. They can either manage the portfolio themselves or have Zacks manage the investments for them.
The tailored output demonstrates to employees the potential problem of a shortfall in retirement savings and offers alternative solutions including a re-allocated portfolio. "Most people have a shortfall between what they want [income] at retirement and what is likely to be available. The 401k system will show them this in a way they have probably never seen before," according to Philip Wilson. Dynamic graphics will show each employee where they currently stand and what needs to be done in order to achieve their financial goals.
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