OneAmerica® recognizes that one size does not fit all when it comes to retirement preparation. A continued commitment to product innovation and customization is at the core of RetirementTrack, a new, user-friendly investment option that pairs personal choice and individual needs with traditional target date funds. PLANADVISER recently spoke to Sandy McCarthy, Retirement Services president at OneAmerica, an organization that can trace its history in the financial services industry back more than 140 years.
PA: What are the details of RetirementTrack?
Sandy: RetirementTrack, which became available at the beginning of June, is a multi-glidepath approach to target date funds. RetirementTrack goes beyond simply looking at age and retirement date and uses three glidepath options (conservatively managed, moderately managed, or aggressively managed) to allow participants to further customize by risk tolerance. Created through a collaboration of industry pioneers (BlackRock, flexPATH Strategies, LLC, and Wilmington Trust), RetirementTrack adheres to U.S. Department of Labor fiduciary guidelines and is available exclusively to OneAmerica customers through a collective investment trust (CIT) structure that allows for cost competitiveness. The inclusion of a stable value asset class helps manage market volatility.
PA: How did you come up with RetirementTrack?
Sandy: RetirementTrack really speaks to our foundational belief in the importance of customization. No two participants are alike, and the solutions we offer need to reflect that. RetirementTrack gives participants options so that they can make the best choices for their unique situation, income, age or risk tolerance.
PA: What are the benefits of expanding beyond a one-size-fits-all equation?
Sandy: Traditional Target Date Funds (TDFs), while a great choice for many people, can be limited by the fact that they only tie asset allocation to age and retirement date. An individual’s risk tolerance is a big piece of the equation, but one that’s sometimes neglected with a traditional TDF. With RetirementTrack, risk tolerance gets the consideration it deserves, and allows participants more options than the standard ‘one size fits all’ approach they may be used to. At the heart of it all is providing participants with options that go beyond cookie cutter. Our goal is to put participants on the path to reach their unique goals, which requires us to offer products with an out-of-the-box, individualized mindset.
PA: Does RetirementTrack offer any other benefits for participants?
Sandy: Yes. Though some participants are comfortable with investing, others find investment allocation challenging, especially when it comes to choosing the options that best align with a participant’s individual goals and comfort in the market. RetirementTrack takes the guess work out of the equation and provides a user-friendly way for participants to assess their situation and take action. On top of that, the product is supported by recognized providers and combined with the AUL Stable Value Account from OneAmerica to help mitigate market risk.
PA: How do fiduciaries ensure they are meeting their responsibilities when choosing a Qualified Default Investment Alternative (QDIA)?
Sandy: Now more than ever, fiduciaries need a way to help protect them when it comes to selecting what’s right for their participants. RetirementTrack, as a custom target date solution, meets the risk mitigation criteria necessary to be offered as a QDIA. It’s non-proprietary, offers best-practice options, choice, and includes cost efficiencies.
PA: What would entice advisors to look at this?
Sandy: Plan advisors and sponsors will recognize providers they know and will be drawn to the impartiality of this investment option that addresses risk and asset allocation. At the end of the day, participants, sponsors and advisors don’t just want what’s better than the others, they simply want what is better for them.
Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.
The AUL Stable Value Account (SVA) is a group fixed annuity, issued by American United Life Insurance Company® (AUL), a OneAmerica company, One American Square, P.O. Box 368, Indianapolis, IN 46206-0368, 1-800-249-6269. Investing involves risk which includes potential loss of principal.
BlackRock, flexPATH Strategies, LLC, and Wilmington Trust are not affiliates of any OneAmerica company.
OneAmerica® is the marketing name for the companies of OneAmerica.
To learn more about our products, services and the companies of OneAmerica, visit oneamerica.com/companies.