The models, powered by Morningstar Associates, are designed to help advisers make informed recommendations on asset allocation to help clients meet their investment goals. Advisers can create portfolios using the client’s target asset allocations and their answers to an optional Morningstar Risk Tolerance Questionnaire.
An online Morningstar proposal-builder tool gives advisers the flexibility to use a LiveWell Model or to select a LiveWell Asset Class Model as a framework to choose the funds themselves. The tool allows advisers to add a hypothetical comparison portfolio to help evaluate the asset allocation, investment style, top holdings and historical performance. The end result is a set of illustrations at the asset-class or investment option level that advisers can use for clients or prospective clients.
Advisers need a range of options to offer clients for investing rollover money from 401(k) and other investment vehicles. The challenge with too many options may be the difficulty in allocating the investment dollars, according to William Lowe, president of Sammons Retirement Solutions Inc. “To address the growing demand for allocation assistance, we have responded to financial professionals’ requests for something beyond traditional asset class allocation strategies,” Lowe said. “The LiveWell Mutual Fund IRA offers fund-specific models, and the LiveWell Variable Annuity provides a similar model at the investment option level.”
The models comprise portfolios that provide exposure to a broad spectrum of asset classes. Each model takes into consideration a client’s time horizon, investment goals, and risk tolerance across different investment categories such as conservative, moderate, moderate growth, growth, and aggressive growth. Investment options come from brand-name money managers as well as boutique managers.
Sammons Retirement Solutions Inc.develops and distributes products focused on IRA rollovers and other retirement assets. More information is available here.