Ralph Haberli, the CEO of $326 billion Edelman Financial Engines, said it’s a “great thing” for 401(k) savers to have access to alternative investments, but that it should come with personalized advice in terms of the type and amount of exposure.
“Getting access to less liquid alternative investments that tend to have a longer investment horizon in a retirement context makes sense,” Haberli said at the Wealth Management EDGE conference at The Boca Raton resort in Boca Raton, Fla. “Now, how that comes about and how much matters. This is a more complex investment in many instances; it’s less liquid, so you can’t necessarily go in and out, and prices are less transparent.”
Haberli was discussing alternative investments in 401(k) accounts in the context of a proposed Department of Labor rule currently being hashed out that would ease the path of their use. As of June 1, the DOL received over 37,000 comments on the proposal. Many proponents argued the rule will give everyday savers access to investments formerly reserved for institutional investors and the ultra-wealthy; opponents warn of risks to savers ranging from high fees compared to the results to being locked out of needed savings.
Haberli’s Edelman straddles workplace savings and wealth management, serving as the country’s largest managed account provider for 401(k) plans while also being one of the larger wealth managers by assets and advisor count.
In the conversation with Wealth Management Executive Editor Diana Britton, the CEO said Edelman believes alternatives are something that plan sponsors “should have in your lineup and your plan, but how it shows up there matters quite a bit,” with personalized advice and guidance being key.
Haberli gave the example of a 45-year-old with $100,000 in their retirement plan versus someone of the same age with $50,000 in a retirement plan but has just inherited a million dollars. Both may be put into the same target-date fund for their 401(k) s, but would have very different investment situations and needs.
“We are believers that alternatives have a role to play in the portfolios on the wealth side of what we do, and being able to offer that same set of services and capabilities across the entire investment is a win,” he said.
Haberli took over as CEO of the firm from Jay Shah in late 2025, who had been in the position since May 2023. He joined with a background in the retirement space, including his most recent role as president of the institutional and retirement client group at Capital Group and BlackRock.
Now, the CEO is working to ensure connection across Edelman’s workplace savings business and its financial advice.
Haberli said Edelman is structured so 401(k) savers can connect with financial planners for basic questions. If those conversations become more complex, clients can be recommended to an Edelman financial advisor.
“Our wealth planners get a meaningful portion of their leads from clients that have gotten to know us,” he said. “We’re not just cold calling in that sense. It’s really core to our growth engine and our growth strategy, both at a corporate organizational level, but also for individual planners that are looking to really build their practice.”
Haberli added that Edelman introduced an equity plan for all of its financial planners earlier this year.
“It’s a great way to reward what they do every day, and really aligns us around incentives with that long-term mindset around creating value together,” he said.
