Financial Engines
AMERICAN CENTURY INTRODUCES ROLLOVER ADVISOR SERVICE POWERED BY FINANCIAL ENGINES
American Century's Rollover Advice Specialists Aid Investors with Rollover Decisions
KANSAS CITY, Mo. and PALO ALTO, Calif., March 19, 2003 – American Century Investments, together with Financial Engines, Inc., today announced its new Rollover Advisor service. Rollover Advisor combines the expertise and personal touch of American Century's Rollover Advice Specialists with Financial Engines' advice technology to provide advice on retirement assets rolled over to a rollover Individual Retirement Account (IRA).
Using Financial Engines' IRA Rollover QuickSolve solution, an American Century Rollover Advice Specialist works with an investor to design a Rollover IRA portfolio and give specific fund recommendations that are tailored to meet the investor's personal investment needs.
"An increasing number of investors, driven by job changes and more recently by layoffs, need to confront their 401(k) rollover decisions,"said Doug Lockwood of American Century. "American Century, together with Financial Engines, is able to offer those investors an assisted-advice solution that combines the expertise of our investment advisor representatives with Financial Engines' industry-leading technology to provide advice that addresses these investors' needs."
According to Cerulli Associates,* investors who were once willing to manage their own investments are increasingly seeking professional advice. While some self-reliant investors will always remain, market conditions and other industry trends indicate that the majority of investors want professional advice and guidance. This is especially true when investors are faced with a specific financial event, such as rolling over a lump sum of retirement money. Rollover IRAs account for more than 50 percent of total IRA assets and are the fastest growing component of the IRA market.
"Individuals are responsible for piecing together their own retirement income and, for many, IRAs will play a large role in their retirement security," said Jeff Maggioncalda, president and CEO of Financial Engines. "The Rollover Advisor service from American Century combines the human touch of a Rollover Advice Specialist with Financial Engines' advice technology to advise individuals how to invest their IRA dollars in a way that matches their risk tolerance while helping them meet their retirement goals."
Additionally, investors who are self-directed also can access American Century's Rollover Advisor service online themselves. Both the personally assisted and online Rollover Advisor services are available at no additional charge.
Using the Rollover Advisor service, either through American Century's Rollover Advice Specialists or its Web site (www.americancentury.com) , individuals will be taken through a series of targeted questions to help determine how their rollover money should be invested. First, information is collected on the investor's age, target risk level and current account information. Next, the Rollover Advisor service generates a proposal that compares the potential future outcome, risk level and fund allocation of the individual's current account with the recommended IRA account. The investor can then choose to refine the plan step-by-step or take action to implement the new plan. Additionally, the Rollover Advisor service creates a formatted report with a list of recommended transactions. The Rollover Advice Specialist can work with the investor to help complete paperwork and monitor each step of the rollover process.
American Century is a leading investment manager with more than 40 years of experience helping investors achieve their financial goals. Serving investment professionals, institutions, corporations and nearly two million individual investors, American Century offers a broad array of products across a variety of investment disciplines.
Based in Kansas City, Mo., the company manages approximately $70 billion in assets through mutual funds, managed accounts, commingled trusts and subadvisory accounts. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is co-chairman and William M. Lyons is president and chief executive officer. For the past four years, American Century, which employs approximately 2,600 people, has been selected as one of FORTUNE Magazine's 100 Best Companies to Work for in America. For more information about the company, visit www.americancentury.com
Financial Engines provides advice technology and services to help financial institutions and employers address real-world investor needs for their clients and employees. Financial Engines' services provide specific, actionable investment recommendations based on the outcomes an investor wants to achieve and can be delivered through the web, phone, or face-to-face. More than 15 financial institutions and 850 plan sponsors have hired Financial Engines to make advice available to over 3.0 million individuals. Nobel Prize winning economist William F. Sharpe founded the company with a revolutionary vision: to help financial institutions and employers make institutional-quality advice available to individual investors. For more information on Financial Engines, visit www.financialengines.com.
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Financial Engines is a registered trademark of Financial Engines, Inc.
Advice services are provided through American Century Advisory Services, Inc., a registered investment adviser.
*Cerulli Report: "Retirement Industry Update: Trends in 401(k) and IRA Markets,"Cerulli Associates, (2002).