MassMutual and Envestnet Retirement Solutions, LLC (ERS) haveteamed up to provide managed accounts that allowparticipants in 401(k)s and similar retirement savings plans toaccess personalized, actively managed investment strategies withintheir plans.

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With RetireSmart Ready Managed Path managed accounts, theparticipant’s retirement account is actively managed by ERS on anongoing basis to make sure investments remain appropriate for theparticipant’s objectives.

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The managed accounts, which are available to retirement planswith $5 million or more in retirement assets under management, aredesigned to help participants who need investment guidance but maynot want to actively manage their retirement investments on theirown.

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The managed account investment strategies are built frominvestment options already available through a plan sponsor’sretirement savings plan.

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Employers can use the managed accounts in two ways: aspersonalized investment strategies available for selection byparticipants, or as a qualified deferred investment alternative(QDIA) available in plans that automatically enroll employees orwhen participants otherwise fail to select investments.

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Asset allocation strategies such as target-date funds are becomingincreasingly popular as participants turn over management of theirretirement assets to investment professionals.

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Read: Towers calls on managed account providers tolower fees

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According to MassMutual’s recordkeeping data, the percentage ofassets within asset allocation strategies increased by 26.2 percentin the last five years.

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Participants can enroll in the managed accounts online throughthe MassMutual RetireSMART Ready Tool after establishing a separateadvisory account with ERS, without having to do any otherpaperwork.

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The tool gathers information about each participant’s currentage, target retirement age, risk tolerance, existing savings, andfuture retirement needs, including whether or not he or she has adefined benefit plan.

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Retirement readiness projections, and managed account portfolioconstruction, are based on a participant being able to replace atleast 75 percent of his or her preretirement income, including fullSocial Security benefits.

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