Michael Sebastian, Chief Investment Officer
The hybrid qualified default investment alternative (hybrid QDIA) is a retirement readiness innovation that is growing rapidly in adoption. Here’s a quick overview, a discussion of how hybrid QDIA is gaining momentum with plans, and some next steps.
Hybrid QDIA is a holistic, dynamic, personalized retirement solution that utilizes two investment options: (1) a low-cost target date fund (or customized target date portfolio) investment, and (2) a managed account. Participants begin in the target date fund investment solution before automatically adding on managed account services when they reach a specified milestone, such as a certain age (or choose on their own to upgrade to managed account services.)
When Hybrid QDIA serves as the default investment option for a retirement plan, it provides planning for everyone regardless of the investment option. Being the default maximizes value added potential for all participants, enabling mass enrollment and engagement. In this way, it reaches all participants--early-, mid- and late-career, everyone has a plan. Additionally, the methodology and user experience are consistent throughout the participant’s career.
NextCapital is very proud to have been awarded one of Chicago’s Best Places to Work for the second year running by Built In. The success of NextCapital as an organization is a direct output of the engagement, growth, and success of its people.
To top it all off, we received awards in three categories:
Best Places to Work (#37)
Best Midsize Companies to Work For (#10)
Companies with the Best Benefits (#43)
As we continue to deliver disruptive solutions to our partners in the financial industry, we look forward to growing our talented team. If you are interested in joining us at NextCapital, take a look at our current openings.
NextCapital named one of Nassau Re/Imagine's 2021 Top 100+ Retiretech Companies in Retirement Planning for Employees
We are thrilled to announce that NextCapital has been named one of Nassau Re/Imagine's Top 100+ Retiretech Companies for 2021 in the Retirement Planning for Employees category! The award recognizes the most innovative companies shaping the future of the industry. According to the retiretech incubator, "We believe these companies will effectively rewire the [retirement] industry for the next ten years."
Learn more about the Most Innovative Companies Shaping The Future Of The Industry
NextCapital is proud to announce that Liz Kigin, Vice President of Partner Management, has been included on Innovate Finance’s Women in FinTech Powerlist 2019.
According to Innovate Finance, the list “shines a spotlight on the women leading innovation in financial services.” The 2019 list recognizes 200 women from across the globe. Liz is listed in the Professional and Financial Services category as someone who is an “in-house specialist, the go-to for the latest in FinTech trends, and an influential voice on sector innovations and diversity in finance.”
NextCapital, the leader in enterprise digital advice®, announced today that it has been featured on Built In’s 2020 list of the Best Places to Work in Chicago. NextCapital has been recognized as one of the Best Midsize Places to Work and one of the Companies With the Best Perks and Benefits.
Target date funds (TDFs) aren’t sophisticated enough to address the retirement needs of American workers. There’s a rising tide of workers retiring, and many of those workers don’t feel ready for retirement. Now more than ever, investors need customized, cost-effective income planning and investment strategies. Personalized managed advice can meet that need by providing better outcomes for investors than they would get with TDFs. There are a number of benefits for firms that offer personalized, managed advice, too.
It’s becoming more apparent that despite the broad adoption and dominance of the $1.7 trillion Target Date Fund (TDF) product, TDFs don’t address the trends and issues that are becoming more urgent for American workers. When it comes to both the increased lack of retirement readiness and the shift in the growing base of retirees that need income distribution advice, TDFs aren’t doing enough.