Mark Friedenthal, founder and CEO of Tolerisk, demonstrated the firm’s latest offering, a 401(k)-specific tool for advisors working with retirement plans, on Monday at the FinovateFall 2018 conference in New York.
WealthManagement.com caught up with him at the conference Tuesday.
“Simply put, it has just been too time consuming for advisors to create customized advice for participants in most retirement plans—low 401(k) participant balances just often make it hard for most advisors to justify,” Friedenthal said.
“Minutes instead of hours, that is what we are providing with this new tool; with it advisors can provide some custom answers and financial planning to participants they could not really serve cost-effectively before,” he said.
.@Tolerisk’s Mark Friedenthal and Ryan Wheeler debuting the Tolerisk 401(k), a tool that allows advisors to provide custom financial planning advice to participants in minutes #Finovate pic.twitter.com/lc2OMaG5sf
— Finovate (@Finovate) September 24, 2018
Tolerisk 401(k) leverages Tolerisk’s analytics and simple user interface (first versions launched in 2014), to allow retirement plan participants to largely get their own customized insights about their financial plan and asset allocation but through working with the advisor as an intermediary.
The application takes into account a participant’s asset allocation-based factors, including time horizon, savings rate, spending rate, assets outside the 401(k), other retirement income, tax rates and personality.
The new product will be rolled out to existing users over the next two weeks with general availability thereafter. Tolerisk provides a one-week free trial, after which a single advisor subscription to the software costs $89 per user per month (for two to 99 users the price drops to $79).
