Pontera, the fintech provider specializing in retirement account management, has unveiled a new strategic partnership that will help boost financial advisors' ability to guide retirement savers.
Pontera announced that it's collaborating with 401GO, a technology-driven 401(k) recordkeeper to let plan participants directly access professional 401(k) management services from their advisors.
The milestone partnership, unveiled on Thursday, marks a significant step in simplifying retirement plan management for small and midsize companies.
Founded in 2019, 401GO is known for its innovative use of 401(k) recordkeeping technology to enhance workplace retirement plans. By integrating with Pontera's platform, 401GO aims to provide plan participants with more options for personalized advice in managing their retirement savings.
While more than half of the median American's wealth, it's been challenging for advisors to seize on the sizeable 401(k) opportunity. That poses a potential missed opportunity for retirement savers as well, with studies suggesting returns in professionally managed accounts outpace self-directed ones by a margin of 4 percent each year, according to Pontera.
"Enabling personalized 401(k) account management through Pontera provides plan participants more choice in how they receive in-plan help," Jerry Bonnabeau, head of defined contribution partnerships at Pontera, said in a statement. "Our secure platform helps clients with more complex financial needs receive a higher, more comprehensive level of service from their trusted advisor."
A notable feature of the partnership is that it allows financial advisors to deduct their management fees directly from clients' 401(k) accounts. This new capability, requested by many Pontera users, simplifies the fee payment process and brings it in line with other in-plan management options, such as target-date funds and managed accounts. According to Pontera, this direct debit feature will also streamline operations for advisors and expand their ability to serve clients with workplace retirement accounts.
"Pontera shares 401GO’s vision for reshaping the retirement industry through technology, making 401(k)s more inclusive, approachable, and affordable," said 401GO co-founder and chief executive Daniel Beck, emphasizing the partnership's potential to help advisors manage 401(k) accounts more efficiently and offer their services to a broader range of clients.
Pontera's deal with 401GO builds on other partnerships it's forged this year, including one it inked with hybrid RIA Ameritas Advisory Services in April and its mega-partnership with Stifel announced in May.
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