A new software solution aims to combine the best parts of target-date funds and managed accounts in 401(k) plans.
Target Date Solutions Monday announced the release of Soteria, a technology that blends personalized safe-landing target-date fund glide paths with the personalization of managed accounts. TDFs are the most popular qualified default investment alternative for defined-contribution plans, while managed accounts are the second most popular.
Read more: 10 things to know about TDFs
Ronald Surz, president of Target Date Solutions, said the benefits of Soteria include a better management of sequence of return risk compared with other QDIAs, a patented design with a 16-year track record, and a cost below 20 basis points, which is typically less than half of the fees charged for managed accounts.
“Our pioneering innovation equips record keepers with software that revolutionizes 401(k) investing for both defaulted and self-directed participants,” Surz said in a statement.
Surz has been a leading voice in the retirement industry regarding the unseen risks of target-date funds, especially when they near or reach maturation. In 2022, for example, target-date funds performed poorly as a result of the severe market corrections in both the equity and fixed-income markets.
Soteria is designed to correct potential imbalances by better integrating participants' anticipated retirement age with their level of risk tolerance, as well as utilizing safe landing, low-risk investments that are within a participant's risk zone.
So far, legal settlements involving Jim Walesa since 2021 have cost Osaic about $26.3 million.
New survey data show record contributions and investing gains, even as employer education on retirement use stays limited
Phoenix-based Brookwood Investment Group taps the AI-native wealthtech firm as its advisor count and AUM keep climbing
To achieve contentment, advisors should think twice before selling their firms for the biggest dollar amount.
San Diego broker-dealer giant picks up California-based Sierra Ridge and its roughly 40 advisors, who had been affiliated with LPL for just over a year.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
