Adaptive Retirement Accounts (ARA)

While target date strategies are good menu options, they are built for the average participant—and no one is average. With Russell Investments Adaptive Investing, you can provide participants with access to customized asset allocations aligned with their individual retirement income goals.

Not all DC plan participants are typical

Target date funds are the most popular qualified default investment alternative (QDIA). But, differences in participants’ savings and market experiences can lead to different outcomes as they try to reach their targeted retirement income replacement goals.

Russell Investments Adaptive Investing —The next evolution of target date investing

  • Designed to be cost-efficient and easy to use, like target date funds
  • Incorporate multiple participant data points
  • Generate a customized asset allocation for each participant
  • Designed to increase the probability of reaching a targeted retirement income goal

Adaptive Retirement Accounts (ARA) explained

This short video shows how ARA creates customized investment portfolios designed to help DC plan participants reach their specific retirement income goals.

Please note fees will be paid directly by participants unless they opt out of the ARA program.

The projections produced by this tool are estimated by using current capital markets assumptions and are subject to change based on market conditions. There is no guarantee that the stated projections from this tool will be achieved.

Russell Investments Adaptive Retirement Accounts is a product of Russell Investment Management Company, LLC ("RIM"). The implementation of Adaptive Retirement Accounts in investors' portfolios and related investment advice are provided through investment advisers and other financial intermediaries that are independent of RIM and its affiliates. The advice provided by RIM in Russell Investments Adaptive Retirement Planner is based on asset-class level assumptions only.

An Adaptive Retirement Account will review the asset allocation on a quarterly basis and automatically shift the participants portfolio based on current age, gender, account balance, savings rate and salary. Based on the Adaptive Retirement Account methodology, asset allocation may become more conservative by increasing its exposure to bonds or more aggressive by increasing its exposure to asset classes that have historically had higher risks (e.g. stocks).

Investing in an Adaptive Retirement Account is not guaranteed. The projections produced by the Adaptive Retirement Planner are estimated by using Russell Investments' capital markets assumptions and are subject to change based on market conditions. There is no guarantee that the stated projections will be achieved. Results will vary with each use and over time. Investing in an Adaptive Retirement Account involves risk; principal loss is possible. The principal value of the account is not guaranteed at any time.

Target date fund investing involves risk, principal loss is possible. The principal value of the fund is not guaranteed at any time, including the target date. The target date is the approximate date when investors plan to retire and would likely stop making new investments in the fund.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

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