Financial Engines, which claims to be America’s largest independent investment advisor, announced a strategic partnership with ADP.
Under the relationship agreement, ADP will offer Financial Engines’ retirement planning expertise to its retirement services clients.
Financial Engines is the robo advisor founded by Nobel Prize-winning economist William Sharpe of Sharpe Ratio fame.
“The Financial Engines advisory service offering, on the ADP platform, will launch in the summer of 2018,” the companies said. “It will broaden ADP’s financial wellness capabilities that aim to help 401k participants better prepare for day-to-day expenses and for broader financial challenges.”
Financial Engines’ direct advisory services for participants include:
- Online Advice – personalized online savings and investment advice and retirement income services for employees who want to manage their retirement themselves
- Professional Management – a discretionary personalized management service for participants who want to partner with and delegate the management of their retirement accounts to a professional
- Income planning and Social Security claiming guidance – advice provided through Financial Engines’ nationally recognized Social Security Planner
- Personal Advisor – personalized professional management for all participant accounts (401(k), IRA and taxable accounts), comprehensive financial planning, and a dedicated advisor
“These services combined with the ADP financial wellness program may help employees more confidently manage their financial decisions and encourage employees to use best practices to better meet their retirement goals.”
In addition, participants will have access to Financial Engines’ non-commission based Investment Advisor Representatives, as well as to independent online investment advice, and to ongoing financial wellness programs and education.
“We’re very excited about this strategic relationship with ADP Retirement Services because it aligns with our mission,” said John Bunch, Executive Vice President and Chief Operating Officer at Financial Engines. “It allows us to expand our ability to deliver financial help through the workplace and introduce directly a suite of financial wellness capabilities—including advisory services—to millions of employees.”
“ADP is excited to collaborate with Financial Engines to deliver to participants the value of its more than 20 years of experience providing personalized advice to participants,” said Chris Luongo, Vice President of Product Marketing and Business Development, ADP Retirement Services. “ADP and Financial Engines share the goal to leverage technology to improve participants’ experiences. This underscores ADP’s commitment to financial wellness and gives employees sound financial resources, so they can be confident in their retirement planning and savings decisions.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.