Empower, the nation’s second-largest record holder for wealth, has announced further expansion into wealth management with its Empower Personal Wealth division, providing financial advisory, planning and investment services to consumers.
The Greenwood Village, Colorado-based firm has since acquired Personal Capital, a registered investment advisor and wealth manager, for $1 billion, whose infrastructure was part of the development of a new division. I made this announcement about three years later. Carrol Waddell, who Empower named him head of its private investor division in January, will become president of Empower Personal Wealth and oversee the company’s expansion into wealth management.
“Empower Personal Wealth is the next generation of people and technology advice,” Waddell said in a statement. “We’re here to help answer people’s money questions so they can move on to the next phase of life, work and play.”
Personal Strategy+, one of the company’s leading digital services, already manages more than $2.1 billion, according to a spokesperson. With this service, Empower manages a client’s entire portfolio, including employer-sponsored retirement accounts such as 401(k) and her 403(b). This service is the option of choice for retail investors. The plan’s sponsors don’t need to be involved, the spokesperson said.
The move by Empower represents a trend in the retirement space to serve the advice and wealth management needs of plan participants. Participants, many of whom are enrolled in “set and forget” funds, were increasingly asked questions about how to manage multiple retirement accounts from different jobs and how to manage a reduction in retirement savings. facing.
With $1.3 trillion in DC assets under management, Empower focuses on consumer money management as a way to “reconcile” people’s savings with all aspects of an individual’s “fragmented” money management experience. claims to be As part of its offering, Personal Strategy+ allows customers to create dashboards including retirement plans, credit cards, loans, and other investments.
Empower has grown over the past decade through a string of combinations, starting with Great-West Financial and most recently following the acquisition of retirement businesses MassMutual and Prudential Financial. The company currently has over 17 million retirement plan participants.
There will be an additional charge for consumers to use Personal Strategy+, but Empower said it did not specify a specific charge. Investment products within the service include Empower Personal Cash, a high-yield cash account and tool for household finances and budgeting.
As part of its foray into the consumer goods market, Empower recently launched a new personal finance news site and newsletter, The Currency, a branded campaign, “Empower What’s Next,” and a national TV commercial.