Congrats to our portfolio company NextCapital, who announced that a defined contribution plan advisory firm is using NextCapital’s digital advice solution, combined with Russell’s Adaptive Investing methodology, to re-enroll its own 401(k) plan and now offers the solution to all its plan sponsor clients.
NextCapital's digital advice solution enables Russell's Adaptive Retirement Accounts (ARA) to personalize and automate investment management for retirement savers and provide a retirement plan that is regularly updated. The personalized plan also integrates features such as auto-escalation savings to help employees achieve their target income in retirement. Plan advisers may offer the NextCapital/ARA solution to all their plan sponsors to provide personalized portfolio management and planning to all employees. Re-enrollment of all employees into the solution is possible because it qualifies as a Qualified Default Investment Alternative (QDIA). "Target date funds have been the runaway default used by the industry to approximate a prudent portfolio for each investor, but we can do better with more personalized investing and planning. Today truly personal portfolio management is obtainable for all DC participants for about the same cost as a TDF..."