Retirement plans are usually made by people who feel they can actually quit their jobs at a certain age and have enough money to maintain their lifestyle. ?
Several fintech start-ups are working on this issue. Possible to retirebelieves that retirement planning should be easy to come by without setting aside millions of dollars. It calls itself a “theoretical” approach.
Built on a 2019 study by Transamerica Center We found that only 1 in 5 employees have a written retirement strategy, but the company offers similar services to other retirement planning firms. A dedicated advisor and products and services for investing, planning and spending.
But co-founder and CEO Tyler End says the similarities end there. That said, not only does it focus on individuals with low net worth, but it also fully addresses retirement “depreciation.” This is done by allocating a person’s wealth into his three buckets: cash, stability and growth. Clients can see how much they earn in real time and how much they can safely spend each month. We’re also working on a debit card that applies this same logic to investments, turning cash into savings.
The company offers free consultations to Americans over the age of 50, and its services are priced at 0.75% on the first $500,000 of assets under management and are free thereafter. End said this equates to about 63 cents for every $1,000 of his managed, which is lower than comparable advisory services.
“Big companies may offer a call center and have someone help you with your account, but we are the only ones who offer a trusted and dedicated advisor who will work with you on your plans you can trust. “I see a lot of people starting out with a mission similar to ours to help everyone, but when people are motivated to sell, they generally don’t want to sell,” he told TechCrunch. , will flow in the direction of higher net worth.”
End founded the company with Ian Yamey and Brian Ramirez in 2019, and with 15 employees, Retirable has built a unique technology that has designed over 50,000 retirement plans.
A month ago, the company launched investment management and payroll products and began matching customers with planners. Retirees also increased their revenue by more than 25% month-over-month.
Today, the company announced an additional $6 million in venture-backed seed funding, bringing its total investment to date to $10.7 million. The round was led by Primary, with participation from Vestigo Ventures, Diagram, Portage and Primetime.
End said the new funds will be used to accelerate debit card development, continue to expand its advisor team, and add new distribution channels, including working with Medicare agents, tax planners and real estate planners. rice field.
“One of the interesting things about this demographic is that some people are spending too much too early,” he added. “If you stay active in retirement, your spending will fluctuate with age. It’s about giving insight.From there, we can offer discounts on top of the savings.It’s a first in the world.”