Products April 30, 2018

Resources Investment Advisors Reveals Financial Elements Literacy Program

The financial wellness and literacy program is meant to help employers address the hard costs of high-turnover, absenteeism and financial hardship of their employees.

Reported by

Resources Investment Advisors, Inc., a partnership of independent financial advisers based out of Overland Park, Kansas, is launching a new financial wellness solution called Financial Elements.

Going live on May 1, 2018, the program is meant to be “purchased by employers who experience the soft and hard costs of high-turnover, absenteeism and financial hardship of their employees.” According to the firm, the Financial Elements program breaks down challenging concepts into simple elements to increase financial literacy and reduce employee financial stress through education and behavioral coaching.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The rollout comes as financial stress among U.S. employees is reaching “epidemic proportions.” Survey data shows as many as 75% of Americans currently live paycheck to paycheck, while personal savings rates are at their lowest since 2007 and non-mortgage debt levels are higher now than during the Great Recession.

Data provided by Resources Investment Advisors, citing PwC’s latest employee financial wellness report, suggests more than half of employees are regularly stressed about their finances—and more than a quarter of financially stressed employees admit to being distracted at work. Notably, nearly half of distracted employees say they spend over three hours per week on personal finances at work.

“Financial Elements wellness program targets employees on an individual level to identify and change behaviors that impact each employee’s financial literacy and wellness,” the firm explains. “First, through an online assessment, mentors (financial professionals) identify the state of each employee’s financial health. Second, mentors who provide personalized financial guidance introduce ‘the human element’ by reaching out to employees to address elements such as budgeting, retirement planning, debt, and investment counseling. Finally, through periodic check-ins and goal setting, mentors assist employees in sticking to their financial plans, thereby changing behavior, and easing financial stress.”

Vince Morris, president and CEO of Resources Investment Advisors, says the program is unique in its utilization of technology and off-site mentors to work with employees.

Additional details about the program can be found at www.financial-elements.com.

Deals & People April 30, 2018

Hellman & Friedman Buying Financial Engines

The deal is for $45.00 per share in cash, for a total value of $3.02 billion.

Reported by

Hellman & Friedman has signed a deal with robo adviser Financial Engines to purchase the independent investment adviser for $45.00 per share in cash, for a total value of $3.02 billion.

The price per share is more than a 32% premium above the closing share price of $33.95 on April 27 and more than a 41% premium above the trailing 90-day volume weight average stock price for the period ended on April 27. Hellman & Friedman, which owns Edelman Financial Services, will combine the two companies.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Financial Engines has $169 billion in assets under management. The company serves retirement plans at more than 750 companies. Edelman manages more than $21.7 billion for more than 35,000 clients.

“After a thorough assessment, the board has determined that this transaction represents a compelling outcome for our stockholders, customers and employees,” said Blake Grossman, chairman of the board of Financial Engines. “It recognizes the value of Financial Engines’ franchise and mission while providing stockholders with a substantial premium.”

Allen Thorpe, a partner at Hellman & Friedman, added, “We look forward to further investing in Financial Engines to accelerate its growth and success.”

Ric Edeman, chairman of Edelman, said, “We are very excited to join forces with Financial Engines to serve more clients better than ever and to accelerate growth in the business.”

The transaction is expected to close in the third quarter, subject to approval by Financial Engines’ stockholders, regulatory approval and other customary closing conditions.

In 2015, Financial Engines purchased The Mutual Fund Store for $560 million in order to offer its clients more holistic advice. At the time, Financial Engines President and CEO Lawrence (Larry) Raffone said that robo and in-person advice are not mutually exclusive and that research his firm conducted indicates that even those interested in robo-advice value the human touch. In line with this, the following year, Financial Engines hired additional advisers around the country. Citing reserach from Aon Hewitt, the company noted that 54% of employees would like access to financial advice through the workplace. Additionally, Aon Hewitt’s 2016 Hot Topics in Retirement and Financial Well-Being report indicated that 89% of employers are likely to add or expand the financial well-being tools and services offered to employees this year.

In March, The United States District Court for the Northern District of Illinois, Eastern Division, ruled for the defendants in an Employee Retirement Income Security Act (ERISA) lawsuit filed by participants in the Caterpillar 401(k) plan against Aon Hewitt. Financial Engines was named in the text of the suit but was not formally charged as a defendant.

«