Next Version GuidedSpending Retirement Income Solution Goes Beyond the 4% Rule

LA JOLLA, Calif., Jan. 28, 2011 /PRNewswire/ -- GuidedChoice®, a leading provider of investment advice and managed account services for defined-contribution retirement plans, has announced the launch of GuidedSpending(SM) 2.0, a major revision of its industry-leading retirement income advice program.

Reactions from beta testers and early adopters, including a 13,000 participant Fortune 500 company, have been extremely positive and helped shape the final product offering. This is the first online tool of its kind to be offered to all participants within a plan, rather than just as an executive benefit.

GuidedSpending will be demonstrated in a by-invitation-only webcast* for journalists and analysts on Wednesday, 9 February 2011. Chief Architect Harry M. Markowitz, Ph.D., father of modern portfolio theory (MPT), and Sherrie Grabot, Chief Executive Officer, will explain key features and answer questions.

GuidedSpending was designed to replace the overly simplistic '4% rule' approach long used by financial planners. It addresses the need for an easy way to find a personal answer about the amount of money to withdraw each year in retirement in a way that is both more flexible and more effective. The new tool uses the same sophisticated analytics engine first developed for GuidedSavings, the flagship retirement planning product by GuidedChoice.

"Like many other rules of thumb, the 4%-a-year approach to withdrawing retirement income is easy to criticize as being at best inefficient, and at worst downright dangerous. It's certainly not grounded in any actual economic analysis," stated Dr. Markowitz. "Our research has shown that a fixed annual drawdown is not only unworkable, but it doesn't reflect the reality of people's income and spending patterns, either."

*Members of the press who are interested in attending the webcast should contact dlehman(at)market-up(dot)com. Additional product details will be released publicly following the Webcast.

About GuidedChoice

GuidedChoice is an independent service firm providing investment advice and managed account services to individual retirement plan participants in some of the largest defined contribution plans in the U.S. GuidedChoice advice is also available to small and mid-size DC plans through several institutional partnerships. The advice is based on trusted industry standards of asset allocation using Modern Portfolio Theory developed by co-founder and Nobel laureate, Dr. Harry Markowitz. GuidedChoice is headquartered in La Jolla, CA, with sales and communications offices in Los Gatos, CA and Hartford, CT. For more information, visit www.guidedchoice.com.

SOURCE GuidedChoice