RetireTool(k)it, which will be available through Matrix’s wholly owned subsidiary, MG Advisory Services, is a Web application for end-to-end tasks—from fund selection and monitoring, investment policy statement (IPS) preparation, point-of-sale brochure design, and plan enrollment kit creation, according to a Matrix press release. The open-architecture application is for advisers, brokers, and third-party administrators.
The application sits in front of an investment research engine, powered by another Matrix affiliated company, Prima Capital. Advisers can use RetireTool(k)it to select and monitor funds themselves, or hire MG Advisory Services to fill a co-fiduciary role with the plan sponsor, according to Matrix.
The process begins with the adviser entering fund search mandates. RetireTool(k)it then produces investment products that meet those mandates, from the available universe of funds, and delivers an IPS based on the input, according to the release. The RetireTool(k)it also generates automated quarterly fund and annual plan review reports for the adviser to deliver to their plan sponsor clients.
When MG Advisory Services is hired as co-fiduciary and the RetireFocus funds (target-date funds) are included as the qualified default investment alternative (QDIA) option, customized enrollment booklets to the plan are provided at no additional cost, according to Matrix.
“The first thing to do is to make selling a 401(k) plan using open architecture as easy as it is with a bundled product. RetireTool(k)it is a significant step toward that objective,’ said Stewart Cohune, president of MG Advisory Services. “RetireTool(k)it represents the best of both worlds. It is full disclosure, fee transparency, mutual funds at NAV, with the automated and professional reporting consistent with bundled provider output. Not to mention it will save the adviser an inordinate amount of time and resources that he or she can now spend prospecting.’
The highlights of the new tool, according to Matrix, are:
- rational open architecture,
- fund selection,
- investment policy statement,
- point-of-sale material,
- optional co-fiduciary services,
- annual plan review,
- branded enrollment kits,
- core fund list,
- ERISA 3(21) fiduciary status with plan sponsor.
More information is available atwww.matrixfinancialsolutions.com.