Fintech company Arnie launches to disrupt retirement savings
Founded by sisters Eliza and Isabel ArnoldArnie is set to disrupt 32 trillion dollars the pension savings industry
SAN FRANCISCO, 21 February 2023 /PRNewswire/ — Sisters Eliza and Isabel Arnold is redefining the pensions industry with the launch of its flagship platform Arnie.
according to Investment Company Institute (ICI)was total US pension assets 32.3 trillion dollars per 30 September 2022down 4.5 percent from 30 June 2022. Pension assets accounted for 30 per cent of all households’ financial assets in the United States at the end of September 2022.
Retirement savings is a massive industry; 401ks are where most Americans keep most of their wealth. And yet, 401ks haven’t changed since 1978. They’ve been sitting still for the past 40 years and ended up replacing pensions entirely by accident, even though they were never designed to. 401ks are extremely archaic and restrictive, unable to keep up with the speed of innovation found in all other financial services. Which is exactly what Eliza and Isabel Arnold set out to change at the beginning of Arnie.
The result is the origin of a confusing acknowledgment of Eliza years ago that her employer issued 401k invested in companies she was diametrically opposed to (and actively worked against on her employer), and when she asked for changes, she was repeatedly told no.
The two sisters, who have started businesses together since elementary school, are now at the forefront of female founders in the financial institution landscape. Rebuilt from the ground up, Arnie’s modern 401ks no longer pool employees into generalized funds that are impersonal and cannot be customized, but instead create individualized portfolios for each employee. And they do this in a completely new way – by eliminating the use of mutual funds. Almost every 401k use mutual funds exclusively, which is why they are notoriously restrictive and slow-growing. Arnie’s rejection of archaic mutual funds and a whole new method of investing is transformative for the industry…and the employees who benefit from them.
Arnie’s 401ks use a customized indexing process to invest that provides the full flexibility of an individually managed portfolio, combined with the diversification you expect in a standard fund. Created uniquely for each individual, each portfolio is capable of taking in any number of personal inputs and is monitored with thousands of metrics aimed at reducing risk and maximizing returns.
While traditional 401ks are mutual fund-based, often rebalanced only once a year, Arnie rebalances portfolios daily to maintain the most optimal fund based on individual financial goals and preferences, providing protection against market volatility. By building his 401ks more like a brokerage account, Arnie allows for direct individual trades of stocks—screened using their fundamentals, rather than standard categorizations—and provides tax benefits and protection. The result is one 401k giving clients unparalleled control over their portfolios, innovating and disrupting a traditional industry, and holding the keys to the current pension crisis facing us.
“The 401k is a fantastic tool and it has so much potential to help people feel really secure in their retirement, it just hasn’t been pushed far enough yet, says Eliza Arnold, co-founder of Arnie. “It’s easy to assume that because something’s been done one way for so long, that’s the way it’s supposed to be. But usually there’s no rule that says you can’t change it, it’s just that no one has questioned it yet. We decided to question it.”
Contact:
Amanda Hudson
18056578674
[email protected]
SOURCE Arnie
