Invesmart to Release New DC Plan

September 20, 2004 ( - Invesmart has announced the release of RightPath, a new defined contribution (DC) plan that allows access to investment managers acting as co-fiduciary through the enrollment process and after.

Through RightPath, employees will have access to financial advisors at enrollment time and afterwards, if they choose to do so. By looking at a subset of data on employees’ financial situation and goals, RightPath advisors will advise enrollees on the best course of action, the company said. If participants opt to use the RightPath Comprehensive Program, they can, for a flat fee, get fuller and more detailed financial advice on a quarterly basis, according to a news release.

Advisors are available either by appointment or through Invesmart’s advisory call center, and participants who prefer to make their own investment choices, RightPath will also offer access to traditional investment support and planning tools via the Internet.

Program Price

The RightPath program is available to participants for a flat monthly fee that may be paid by the plan sponsor, the participant or both.   RightPath participants can opt out of the comprehensive program at any time.  The investment management expense ratio of the participants well-diversified portfolios will range from 55 basis points for an aggressive portfolio to 45 basis points for a more conservative portfolio.   To eliminate any hidden costs, Invesmart says it returns all revenue sharing proceeds received from mutual funds to the plan participant.  

Kent Baur, EVP and CEO of Invesmart Advisors, noted “Unfortunately, ‘free’ advice in the retirement industry has typically been expensive for the participant.   We’d like to see the end of high expense ratios and revenue sharing that benefit the provider at the expense of the participant.”

Invesmart, which earlier this year unveiled its Investment Fiduciary Standards Scale (see  Invesmart Publishes Fiduciary Standards Scale ) said it believes the new RightPath program is the “first service of its kind to fully comply with the Green Standard of participant advocacy only system.”  

“Employees are looking for their retirement providers to be more proactive in telling them how much to save for retirement and how to invest their retirement money,” said Christian Echavarria, Founder and SVP of Invesmart, in the press release.   “With RightPath, the enrollment meeting transitions from an education session to the road to a better-funded retirement.”