New 401(k)-focused fintech company Arnie is aiming to change how participants invest in their retirement savings.
Arnie’s 401(k) system intends to create individualized portfolios for participants while eliminating the use of mutual funds. The company states its mission is to innovate an industry that has “remained stagnant over the past 40 years,” while being “extremely archaic and restrictive,” according to a press release.
According to the release, Arnie’s 401(k) portfolios utilize a custom-indexing process of investing that is said to provide the flexibility of an individual managed portfolio, along with the diversification expected in a standard fund. The release states that each portfolio is created to fit the individual’s needs, and “is able to take in any number of personal inputs and is monitored with thousands of metrics aimed at reducing risk and maximizing returns.”
Arnie rebalances portfolios to maintain the most optimal fund based on individual financial goals and preferences, while providing protection from market volatility.
Arnie was created by Eliza and Izabel Arnold, who saw a need for individualized 401(k)s after the sisters realized they couldn’t make changes to their own employer-sponsored 401(k)s, like making changes to existing funds they were opposed to. “The 401(k) is an amazing tool, and it has so much potential to help people feel really secure when they retire, it just hasn’t been pushed far enough yet,” shares Eliza Arnold, co-founder of Arnie, in a press statement. “It’s easy to assume that because something’s been done one way for so long, that’s the way it should be. But usually there isn’t any rule stating you can’t change it, it’s just that no one has questioned it yet. We decided to question it.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.