RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

Power Player: Larry Raffone is racing to 'lock up' the 401(k) market by taking its robo head start and combining it with a semi-national RIA

One analyst calls Financial Engines' Personal Advisor a 'massive long-term opportunity' but the rollout is slow and details are scant

Author Mia Diamond June 26, 2017 at 6:56 PM
Admin:
no description available
Larry Raffone: They can’t plan for retirement because today is getting in the way of tomorrow.

FAA

FAA

June 26, 2017 — 11:38 PM
2 Dumb Questions: Does RIABIZ have any business (adverting etc.) relationships with any of the companies/people you tout on this 'list'? #2- Will RIABIZ disclose that? 1 Dumb observation- transparency is important particularly now
Frank Underwood

Frank Underwood

June 27, 2017 — 4:07 AM
Brooke, This piece seems more “Love” than Tough.” Hopefully, the next parts of the series will be more characteristic of your hard edge reporting style. This story fails to mention the following: That half of FE’s managed account business is-sub advised which means the relationship is owned by the likes of Vanguard, Voya and Empower who are unlikely to allow FE to market their Personal Advisor service and risk cannibalizing their own offerings. Also, FE’s current managed account business has a 80% annual retention rate which doesn't bode well for up-selling these users to the more expensive Personal Advisor product. The Mutual Fund Store acquisition is essentially a “Hail Mary” for FE. Its 401(k) business selling to large employers has plateaued and this move essentially pivots the company further away from its technology roots to more or a brick and mortar play emphasizing people more than product. Lastly, robo-advisor competitors like blooom are making big gains. Blooom essentially does the same thing as FE but doesn't have the overhead of having to integrate with 401(k) recordkeepers and selling to employers. It sells directly to individual 401(k) participants and has quickly attained almost $1B in AUM.
Graham Thomas

Graham Thomas

June 28, 2017 — 3:37 AM
FAA-no ads from mutual fund store or financial engines! At least in the 2+ years I have worked here.

Related Moves

John Bunch is out at Financial Engines Advisors after merger integration 80% complete; 'big reveal,' relaunch planned in coming months

The No. 2 man at the $181-billion RIA built a uniform client experience, but now has a chance to be CEO of VC-backed firm based in his hometown

July 11, 2019 at 4:26 AM

Adam Bold, the RIA who went Hollywood -- literally -- after his Mutual Fund Store cash out, is accused of 'general chaos' at his Tinseltown talent agency

Business partners made the lurid allegations in a lawsuit that's scandalous even by Hollywood standards, charging Bold's aberrant behavior has driven the agency to the brink of bankruptcy; Bold calls it a 'shakedown.'

February 14, 2024 at 3:58 AM

Allworth gets its man in John Bunch, who takes over as CEO 'with bases loaded and nobody out' but faces a high bar

Co-founders Scott Hanson and Pat McClain of the $18-billion RIA got the former TD Ameritrade retail chief on his way home from a stint in the UK

October 13, 2023 at 2:06 AM

July 11, 2023 at 2:46 AM

See more related moves

Mentioned in this article:

Financial Engines
401k Plan Consultant



RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo