Invesmart's RightPath Program Tops a Half Billion Dollars in Assets
PITTSBURGH, PA, October 4, 2005 -- Invesmart, Inc., the national retirement financial services firm, reported that assets in RightPath, its next generation defined contribution (DC) plan, have surpassed a half billion dollars, with more than 60% of participants choosing to enroll in the plan opting for discretionary investment advice.
RightPath was launched in late 2004, after four years of research and development, as a participant-focused approach to traditional Defined Contribution (DC) plans. More than 130 plans representing more than $500 million and 15,000 employees have either been converted or are in the process of converting to RightPath.
"The percentage of retirement plan participants who choose Invesmart's discretionary investment advice has remained consistent since we first launched RightPath almost a year ago," said Kent Buckles, Invesmart CEO. "Plan participants both need and deserve every opportunity to build their retirement nest egg for a financially secure retirement. We believe that objective advice from unbiased investment professionals is the surest path to that goal. We're delighted the enrollment numbers support that assertion."
Transforming Results
Invesmart and its advisory partners delivering RightPath are addressing the fundamental request of participants that time spent in an enrollment meeting be productive. As a result of the upfront preparation work and the advisor's unbiased and candid involvement during the meeting, the participants learn just how much savings is required for retirement. During the enrollment process, 61% of participants enrolling in a RightPath plan selected the fee-based discretionary advice alternative where the advisor, associated with Invesmart Advisors, Inc., manages the participant investments and contribution levels. Importantly, fully 44% of participants upped their contribution levels following the enrollment meeting, resulting in an absolute increase in contribution of more than 4%. Eighteen percent of employees who elected to contribute to the RightPath DC plan weren't previously contributing to an employer-sponsored retirement plan.
Mr. Buckles noted that RightPath's growth momentum is based on more than simply offering discretionary advice.
"RightPath is a service where the advisor has a candid, face-to-face dialog with participants during the enrollment meeting, about their retirement financial situation and the saving and investing strategies to help them reach their retirement goals," he said. "Plan participants, no matter their level of financial sophistication, want to be informed like any other consumer making an important purchase decision."
About Invesmart
Invesmart, Inc. is a national full-service retirement financial services firm. Invesmart combines one-on-one, personalized service and technology to help financial service intermediaries advise companies of all sizes in establishing and administering retirement plans. Invesmart provides investment advisory services through Invesmart Advisors, Inc. and brokerage services through Invesmart Securities, LLC, member NASD. Invesmart, Invesmart Advisors and Invesmart Securities are wholly owned subsidiaries of Invesmart, Inc., a Delaware corporation. Invesmart Advisors' relationship as co-fiduciary to the plan and/or to the participant is governed by the terms and provisions of a contractual agreement executed by Invesmart Advisors and the plan sponsor or the participant. Invesmart, Inc. and/or its affiliates do not retain any fund-related reimbursements for any of its investment advisory programs and do not offer any proprietary investments. Invesmart represents 4,000 (DC) retirement plans. Headquartered in Pittsburgh, Pennsylvania, the firm has 20 sales and service locations. Visit Invesmart's website at www.invesmart.com.
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