FAQ for Allianz Asset Accumulation Plan (AAAP) Participants
Contents
How the advisory services work
How the advisory services work
The Questions and Answers in this category are general discussions of Financial Engines analysis and methodology and are not specific to either service. The information provided herein is based on information provided by Financial Engines.
Financial Engines believes investment advice should be independent and unbiased. They don’t sell investments or receive commissions.
Financial Engines follows an investment process that is systematic, transparent, and objective. They avoid market timing and are instead attuned to market developments, which enables them to adapt and change without short-term trading or guesswork. Read more about their methodology on the Investor Central page of their website.
In addition, Financial Engines personalizes their services to each individual, by considering an individual’s total retirement assets and personal risk preferences. According to Financial Engines’s data warehouse, almost 80 percent of the portfolios that receive their Professional Management service are unique (as of September 21, 2012).
Financial Engines determines your risk level based on your age and your retirement horizon — that is, the number of years you have until retirement. Based on a proprietary analysis of portfolios held by investors worldwide, Financial Engines establishes risk ranges for each retirement horizon. Your risk level is initially set at the median level for your retirement horizon. If you have a preference for risk that is higher or lower than other investors your age, you can adjust your risk level and your investment strategy and retirement income forecast will be updated accordingly.
Financial Engines considers your pension as part of your retirement income. You’ll see it included on your personalized Retirement Evaluation, and when you view the Advice Notes on Your Benefits Resources™.
Financial Engines considers your cash balance benefit in their analysis as follows:
- For the Investments analysis (or Investment Risk and Portfolio Diversification analysis), your cash balance account is treated as cash.
- For the Savings analysis (if applicable), your cash balance account is not considered. This analysis considers only the amount you are saving from your paycheck.
- For the Retirement Income analysis, the cash balance account is part of your forecast. The forecast includes projected interest income on the benefit you have accrued to date, and does not assume any ongoing contributions from the company in future.
For answers to questions about your Retirement Evaluation and your specific situation, please call a Financial Engines Investment Advisor Representative at 1-800-601-5957.
The Retirement Evaluation does not consider your self-directed brokerage account balances. When you use Professional Management or Online Advice, your initial recommendations apply to the balances in the plan’s core funds only. You can personalize your profile to include information on brokerage window investments and, once added, that information will be considered in your advice and management. However, Financial Engines will not make contribution rate changes or direct investments related to your self-directed brokerage account. The Professional Management fee does not apply to brokerage window balances.
Yes, you can easily add information on other retirement savings and brokerage account investments online, and they will be considered in your advice or management. To do this, log in to your AAAP account through YBR, click the “Get Advice” link from the “Savings and Retirement” menu and follow the on-screen instructions to “Add Account.”
You may be asked to provide your username and password to allow Financial Engines to connect securely to your other retirement accounts. Financial Engines will have read-only access and will not be able make changes to your other retirement accounts or self-directed brokerage account.
No. Financial Engines (like all investment advisors) cannot guarantee investment returns or future results. Your investments are subject to market volatility and other investment risks.
For active employees, Financial Engines assumes you remain employed at Allianz until your retirement age, typically 65 (or, if you are already 65, your current age plus one year). Your salary is assumed to grow at a net 1.5% rate, which represents a 5% salary growth rate adjusted for a 3.5% inflation rate. The projected salary is used as the basis for your AAAP contributions, and for your Social Security estimate.
Financial Engines assumes you will require an income in retirement that is 70% of your pre-retirement income, consistent with financial industry recommendations. When you use Financial Engines services, you may adjust your retirement income goal by clicking the “Get Advice” link from the “Savings and Retirement” menu on YBR and following the on-screen instructions, or by speaking with an Investment Advisor Representative at 1-800-601-5957.
For former employees, there is no salary on record. Therefore, Financial Engines can create only a retirement income forecast for your AAAP account, without comparing it to a retirement income goal or calculating estimated Social Security income. When you use Financial Engines services, you can add information on a current job, to see an updated forecast and Social Security estimate.
Yes. Financial Engines services are available to all participants who maintain a balance in the Allianz Asset Accumulation Plan (AAAP). Once you take a total distribution of your AAAP account, you will no longer have access to Financial Engines.
A question mark means Financial Engines doesn’t have enough data to provide a complete analysis. This is typical for former employees, where there is no salary data on record. When you use Financial Engines services, you can add a retirement goal, as well as information on a current job, to see a more complete analysis.
Financial Engines does not receive information about your Social Security from the government. Instead, they create an assumed benefit based on your current Allianz salary. If you have no salary on file — for example, if you are a former employee — Financial Engines does not display an assumed Social Security benefit. When you use Financial Engines services, you can enter your Social Security benefit from your government statement, or you can leave it at $0 if you prefer not to include an amount in your retirement planning.