FAQ for Allianz Asset Accumulation Plan (AAAP) Participants
Contents
How the advisory services work
About Professional Management
The information provided herein is based on information provided by Financial Engines.
When you choose Professional Management, Financial Engines manages your account for you for a fee. They work with you to create a retirement strategy using the funds in the AAAP. After that, Financial Engines will manage your account based on your strategy, including requesting any necessary transactions through YBR on your behalf to keep you on track. With Professional Management, Financial Engines keeps you informed of your account status on a quarterly basis. You may continually refine your strategy.
Here’s how to enroll in Professional Management for your AAAP account:
- Call a Financial Engines Investment Advisor Representative at 1-800-601-5957 (Monday through Friday, 9 a.m. to 9 p.m. ET)
- Complete and return the Reply Form included in your Retirement Evaluation packet that is mailed to your home.
“Personalization” is the main difference. The SmartRetirement funds are target retirement date funds with investment mix and risk exposure tailored to the retirement date indicated in the fund’s name. They are a simple way to invest if you are just beginning your retirement saving and do not require much personalization. As your career progresses, personalized investment help may be more appropriate for a more complete analysis that also considers other accumulated retirement savings, outside of the AAAP.
*This is not a specific fund recommendation. You should decide whether the JPMorgan SmartRetirement Funds are right for you. See the Fund Fact Sheets or refer to YBR (www.ybr.com/allianz) for fund details.
The Professional Management program has a tiered fee schedule with discounts for your assets above $100,000. The table below summarizes how the fees apply. There are no commissions, hidden fees, or cancellation fees. The fee is paid quarterly from your Allianz Asset Accumulation Plan account.
| Portion of account | Annual rate | Monthly amount (per $10,000) |
| Up to $100,000 | 0.60% | $5.00 |
| $100,001 to $250,000 | 0.45% | $3.75 |
| Over $250,000 | 0.30% | $2.50 |
An Investment Advisor Representative can tell you the fee amount for your account balance.
Examples:
- For a $50,000 account balance, the fee is $300 a year (which is $25 a month).
- ($50,000 × .0060) ÷ 12
- For a $200,000 account balance, the fee is $1,050 a year (which is $87.50 a month).
- ($100,000 × .0060) + ($100,000 × .0045) ÷ 12
- For a $400,000 account balance, the fee is $1,725 a year (which is $143.75 a month).
- ($100,000 ×.0060) + ($150,000 × .0045) + ($150,000 ×.0030) ÷ 12
Yes, you can provide information about any other retirement assets you or your spouse may have, such as individual retirement accounts, pension, or 401(k) plan accounts. Financial Engines will consider these accounts as they build a strategy for your AAAP account. Please note that you are responsible for making any changes to your outside retirement accounts.
According to information provided by Financial Engines, through the AAAP, the program costs about 30 percent less than what you might pay on your own for a similar service. The annual AdvisorBenchmarking Study* found that on average, Registered Investment Advisors (RIAs) charge 0.92%, or $7.67, per month per $10,000 and require a minimum balance of $250,000. Financial Engines has a $5 minimum balance requirement to operationally manage the account. *The AdvisorBenchmarking Study is based upon online surveys of 427 self-selected RIA firms from February to May 2011. Investment Advisor services vary. Some advisors in the Study may provide different services than Financial Engines Advisors L.L.C.
Yes, you may cancel Professional Management at any time by calling Financial Engines at 1-800-601-5957. Financial Engines requires that you cancel directly with their advisors so they can smoothly transition your AAAP account back to you.