Putting Held-Away 401(k)s Within Reach for Financial Advisors

By Alexandra Zendrian

Financial advisors have been touting holistic financial planning for years without being able to truly deliver on that promise because the majority of many investors’ wealth lies in their workplace retirement accounts. According to Envestnet’s Trends Report 2023-24, families with between $100,000 and $2 million in liquid assets have 56% of that in retirement accounts. 

But investors want that comprehensive financial planning according to research. The 2023 Herbers & Company Service Market Growth Study found that investors were most interested in firms with holistic financial planning offerings that incorporated tax and retirement planning. 

Future Capital, a tech-enabled registered investment advisor (RIA) that focuses on retirement solutions, is making an impact in bringing these previously unseen assets to light through its recent partnership with SS&C’s Black Diamond Wealth Platform. This partnership will give the nearly 3,000 wealth management firms that utilize Black Diamond direct access to their clients’ held-away retirement assets. 

Future Capital accomplishes this through its Construct platform, which allows advisors to build and trade customized 401(k)s with a flexible fee structure. 

Before platforms such as Construct, advisors could access their clients’ held-away retirement assets if clients shared their login information, but that’s a compliance issue.