0
Background
1
R&Discovery
2
Core Needs
3
Ideation
4
Prototype
5
Test
6
Conclusion

Automating Roth IRA

A feature to simplify saving for retirement

Proof of concept for Auto-Transfer and Invest
The Background
Many Americans struggle to consistently save for retirement. We've all be there: forgetting to contribute, finding insufficient funds, and finally being met with a complicated bank-y process.

We want to be committed to saving for retirement, but need a more accessible approach to it all. Let's simplify saving for retirement.
The Scope
A new mobile app feature
My Role
UX Designer, solo
proof of concept only
Timeline
July — Aug 2023
80 hours
Tasks
User Research, UI Design, Prototyping, Usability Testing
The Problem

In 2021, 26% of all US households own traditional or Roth IRAs, but did not contribute in the tax year.

Many individuals struggle to consistently save for retirement, leading to missed opportunities and potentially insufficient funds later in life.
‍This project aimed to establish a foundation for simple saving habits.
How might we...
make saving more accessible

for those planning for retirement?

The
A Solution

Online brokerages can implement automated features like recurring contributions and automatic investments into diversified ROTH IRA portfolios.

1
Set goal
2
Automate transfers
3
Invest transfers
This approach encourages regular saving, simplifies investing, and maximizes the potential for long-term growth, ultimately helping individuals achieve their retirement goals.

Research & Discovery

Schwab’s competitors are prioritizing financial literacy and habits.

Achieving wider reach and deeper engagement through customized educational content, visualized insights, curated recommendations, and automated deposits.
Direct
Aspiring savers
Educating clients on how to build healthy saving and spending habits
Separate app for educational material, reaching only specific clientele
Different frameworks for investments
Leaning further into micro-investing weekly / monthly
Micro-investors,
Longer term investors
Automated portfolio,
Parents planning for college funds,
Social responsibility
Secondary
Indirect
Target Market
Competitor Type
Broad exposure to new stocks,
529 Plan
Weekly auto-deposit and invest,
Visual of portfolio performance
Limited financial calculators, tools, and goal planning
Strengths
Opportunities
Weaknesses
Wealthfront
Fidelity
Integration of education into main application- not exclusive for novices and children
M1
Not sure about client's comfort level with AI, therefore, are straddling both lines

I interviewed 5 people who contributed to their ROTH IRA account in the last year.

What people talk about when they talk about ROTH IRA Contributions
Too tedious
“There are too many steps per transaction, and the language is too bank-y. This makes contributing a very tedious task.

One year, I put it off for many months and then forgot to contribute.”
Luke
Scrambling for tax season again
“Life gets in the way, and it’s already tax season...

I find myself having to find a couple thousand dollars to contribute during tax season.”
Lori
Missing features
“You can auto transfer and auto invest on web browsers, but not on the mobile app.

I do most of my banking on my phone, so this makes it really inconvenient.”
Leo
Luke, Lori, & Leo are

Investors who value low effort and reliable yield.

Investor goals
To maximize yield through small but consistent saving
system requirements
  • Automated features on mobile app for regular saving
  • Simple language, guide to contributions
  • Hands off investment like target funds
How might we...
help people like Luke, Lori, & Leo,

effortlessly maximize their yield?

Defining core needs

To help our clients maximize yield, this project aims to facilitate completion of contribution and investment tasks

Schwab’s goal is to leverage clients at all levels of income and every stage of life

This project aims to facilitate completion of contribution and investment tasks

An investor’s goal is to maximize their yield

Automation can be implemented within the existing sitemap of Roth IRA contribution features.

Combining monthly transfers with automated investments offers opportunities for effortless banking by leveraging personalized suggestions based on spending limits, investment goals, and available funds.

Ideation

Setting goals and Automating Recurring deposits and investments are must-have features that will build the foundation for better saving habits.

Piggy bank
Must-have
Automated
Interviews:
Understand diversification and risk exposure w/ comprehensive view of investment portfolio; comparing performance against relevant benchmarks

‍Competitive analysis:
Stay engaged and motivated with visualization of the progress over time, and information about key drivers
Portfolio Tracking and Insights:
‍Real-time tracking of investments, performance charts, personalized insights into user's portfolio growth
Competitive analysis:
Presents a holistic view of the investment journey.

Interviews:
Dividend investors may prioritize this information to gauge their passive income stream.
Automated Recurring Deposits & Investments:
Users set up recurring investment schedules by specifying a fixed amount or percentage of their income (daily, weekly, or monthly contributions).
Goal-based Investing:
‍Users define financial objectives, such as buying a house, funding education, or building an emergency fund.
Competitive analysis:
‍The progress towards achieving the contribution helps motivate users to stay focused on their financial goals and invest regularly to meet those objectives.
Purpose
Supporting research
Fruits of labor
Interviews:
‍Manually initiating each transaction is a friction point as it requires discipline. Automation ensures consistent contributions to their portfolio.
Fairy god-mother dashboard
Can come later
Gains/Losses:
‍Highlight the total gains or losses in the portfolio. This includes both realized gains/losses from sold investments and unrealized gains/losses from current holdings.

‍Yield and Dividend Information: Display the portfolio's overall yield and dividend income.
Prototyping

Low fidelity screens visualize progress. Motivating users to stay on track.

High fidelity mockups of key home screens highlight current state and next steps.

Automation tasks are sequenced as such to make it easy to complete at a user’s convenience:
Step 1: Transfer
Step 2: Investments

Inline hints provided to give users guidance at every form field.

Testing

I conducted moderated usability tests with 4 participants who have Roth IRA accounts

Moderated Usability Test
Goal of Test
Assess successful completion of tasks (4), and gauge impact towards their goal of regular saving
Must have experience with banking applications and Roth IRA in the last year
All 4 users have Roth IRA accounts
- 1 user did not regularly contribute
- 3 users contribute monthly or by tax deadline
Eligibility Criteria
Recruited Participant details
Results
Task
1. Set goal
2. Set auto-transfer
3. Set auto-invest
4. Check on progress
Completion
Ease
(scale:1-5)
Errors
Satisfaction
(scale:1-5)
4/4
4/4
0/4
0/4
0/4
0/4
4/4
4/4
Avg: 5
Avg: 5
Avg: 5
Avg: 5
Avg: 4
Avg: 4
Avg: 4
Avg: 4
Analysis
Task
1. Set goal
2. Set auto-transfer
Overall success
Strategy
User Reaction
Success ✅
Success ✅
Needs improvement ⚠️
Pre-filled form fields based on answers from ‘Set Goal’ task reduces redundant actions
Progress bar and status cards of automated transfers and investments will update as the months progress and automated activities occur
3. Set auto-invest
Inline hints and set completion, to give users confidence and urgency to get to the finish line
Using personalization to motivate further engagement and completion of tasks
Users look forward to / are curious about the features that may be unlocked upon adding these details
Users feel guided by the pre-filled fields and examples given, and feel as though they’re getting along with the task faster
Users understand at this point that contributions transferred into this account are being used for investment
Though all features are essential and delightful to their goal of contributing and investing regularly, users feel that this page doesn't represent the magnitude of the task at hand.
4. Check on progress
Success ✅

Goal setting and auto-transfer & invest feature, “just simplifies everything”.

The bundling transfers and investment is not a feature that users are familiar with, but is a feature they are excited about and are interested in using.
Priority Revision

Employment of toggle switch for quick deactivation.

4
Let it grow,
or just hit pause and adjust
This approach encourages regular saving, simplifies investing, and maximizes the potential for long-term growth, ultimately helping individuals achieve their retirement goals.

Next steps a/b test usability of bundling vs separate

In a future iteration, I would consider A/B testing the transfer and investment layout; how a decoupled approach might work with users, in relation to the current coupled approach.
in conclusion, this design
compounds small contributions into exponential dividends.
This takes the mental angst out of investing.
“
The most frustrating thing is constantly going into your brokerage account or doing research on companies, wondering where to invest.

This was a lot easier.

This preset helps cut out all that noise. I know the amount that I'm going to invest, I know the breakdown of how much is going to a fund.

This takes the mental angst out of investing.”
Luke
To those who shared their stories and tested this product:‍

Thank you for making this work possible.

Related work

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