AltexSoft Helps Lucia Capital Group Transition from its Legacy System by Co-building a New SaaS Retirement Investment Solution

Lucia Capital Group is a US-based financial services company that provides its clients with end-to-end investment strategies. At the time of the initial engagement, the company oversaw approximately $2.3 billion in invested assets. The company engaged AltexSoft to co-build a wealth management application that would allow its advisors to manage retirement investments on behalf of their clients, monitor the plans, and update clients on how their investments perform against selected targets.

When designing portfolios for income in retirement Lucia Capital Group applies the Bucket Strategy, which is quite different from the rebalancing and systematic withdrawal approach used by many financial services companies. The traditional systematic-withdrawals strategy is designed to systematically withdraw income from a diversified portfolio of asset classes for the entire retirement period rebalancing the remaining assets.

The Bucket Strategy approach, however, divides all investment assets into at least three groups, each representing a different timeframe for the money’s use and different levels of asset sensitivity to changes in interest rates, market volatility, and other factors.

The Bucket Strategy® can consider the wide range of specifics that each investor’s portfolio has and align it with individual financial situations, income needs, longevity, and retirement goals. On the other hand, it may be more complicated to implement than a systematic withdrawal approach. But if done right, the strategy can be applied to building custom tailored pension plans.

The goal of the project was to design and engineer a software environment that would make Bucket Strategy implementation easier for advisors and more transparent for their clients.

More information https://www.altexsoft.com/case-studies/finance/altexsoft-helps-lucia-capital-group-transition-from-its-legacy-system-by-co-building-a-new-saas-retirement-investment-solution/