Prudential Retirement Services has launched a new asset allocation tool for defined contribution plan participants.
GoalMaker is based on a worksheet that determines a plan participant's risk tolerance and calculates the individual's time until retirement. The system then matches these results with one of 12 model portfolios developed with Ibbotson Associates using Prudential and other managers' investment options. The services takes into account the participant's personal savings goals, the types of funds available and the funds' performance.
GoalMaker offers three models, conservative, moderate and aggressive, along with four time horizons: zero to five years; six to 10 years; 11 to 15 years; and more than 16 years. The system automatically rebalances participants' accounts periodically to maintain the asset allocation. Rebalancing intervals are determined by the plan sponsor.
The service is being provided at no additional cost to plan sponsors.
