Diversified Investment Advisors recently introduced PlanXpress that it says aims to encourage sufficient participation rates and savings levels. The plan helps answer the questions, “How much should I save?” and “How should I invest?” the company said
According to the news release, PlanXpress offers plan sponsors and their participants the following services:
- PortfolioXpress – utilizes a series of portfolios to help participants create and maintain an appropriate investment mix by automatically rebalancing their investment allocations on a quarterly basis. When a participant signs up for the free service, the program automatically invests in funds appropriate for the participant’s investment time span. The investment combination is automatically adjusted to reflect a more conservative strategy as the participant approaches retirement.
- EnrollXpress – automatically enrolls eligible employees in the plan after plan sponsors select the default contribution percentage and default investment fund. Participants can opt out at any time.
- SaveXpress – participant’s plan contribution rate is automatically and regularly increased. Automatic deferral increases will cease when participants reach plan/IRS contribution limits.
“Industry research has shown that procrastination and inertia contribute greatly to low participation levels in company sponsored defined contribution plans,” said Diversified Investment Advisors’ chief technology officer Mark Fortier in the news release. “We know that a plan design that offers automated features that takes the burden off of the employee and streamlines an individual’s decisionmaking can be highly effective in increasing participation and contribution rates overall.”
Diversified Investment Advisors, a national investment advisory firm specializing in retirement plans, serves over $74 billion in retirement plan assets, helping more than 1.4 million participants save and invest for retirement.