Reality Investing provides Great-West Retirement Services’ retirement plan participants access to personalized investment portfolios. Offered though Advised Assets Group, LLC (AAG) and powered by Ibbotson Associates, Reality Investing will be available to retirement plans and participants October 1, according to a news release.
The individually managed investment portfolios provided by AAG will be based on specific allocations designed by Ibbotson Associates. Additionally, AAG will monitor and rebalance participant allocations in response to market performance and personal information provided by participants. For participants, the core management fee is 65 basis points.
Great-West said the need for this product came after the firm’s market research found participants wanted an investment professional to make their retirement investment decisions for them. In fact, 56% of the participants polled by Great-West said they would either “love” or would “probably” like to have an independent financial expert make investment decisions for them. This comes as 66% found it “very” or “somewhat” difficult to understand the information that is being provided to them about current investment choices.
“We believe that no plan participant should be without this additional investment approach option,” said Allyson Zoellner, vice president of Great-West Retirement Services. “We know the reality is that with today’s busy lifestyles, most participants do not have the time, interest, or desire to manage their own account and would rather have an expert do it for them. That’s why Reality Investing includes a managed account solution that will help retirement plan participants benefit from more effectively built, diversified and managed accounts.”
Great-West is not abandoning the investment education or advice models. Under the Reality Investing umbrella, Great-West Retirement Services will continue to offer more traditional participant education through its education counselors. Online investment advice and guidance through AAG also will continue to be available to participants.
Plan sponsors with an existing Great-West relationship can contact their client relationship manager for more information. Otherwise, information is available by contacting Amy Talchak at (303) 737-3732 or Rob McCallum (303) 737-2024.