Nov 17th, 2006 Financial Engines Achieves $7 Billion in 401k Assets Management
On Nov 6th, 2006, Financial Engines announced that 401k retirement savers have given the company over $7 Billion in 401k retirement assets, up $1 billion from the last month. Thanks to the Pension Protection Act of 2006, more companies are encouraging their employees to sign up for 401k retirement plans via automatic setups.
Executive VP of Financial Engines, Larry Raffone quotes, "As more large companies wind down their defined benefit plans, many seek to deliver greater value through their 401k plans, and managed accounts fit well within that strategy. One reason large plan sponsor demand for managed accounts has risen of late is that managed accounts are uniquely suited to work in conjunction with other company benefit programs, such as cash balance plans and company stock programs."
Financial Engines allows 401k retirement savers to have 401k professionals manage their accounts and offer expert investment advice to clients. Raffone further quotes, "This is a big decision for participants, and many are grateful to have the option of delegating the management of their 401k to a professional. Our research shows that at initial enrollment in managed accounts, 90 percent of participants have poorly diversified portfolios, so it’s clear that we’re providing help to the people who need it most."