Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, contributing editor for WealthManagement.com’s RPA channel, reviews all of last week’s industry news and selects the five most important/interesting stories.
Worth reading/listening/noting:
Read the full raw transcript below:
Greetings & a warm welcome to this week’s edition of 401k Real Talk. This is Fred Barstein contributing editor at WealthManagement.com’s RPA omnichannel and CEO at TRAU, TPSU & 401kTV – I review all of this week’s stories and select the most important and interesting ones providing open honest and candid discussion you will not get anyway else. So let’s get real!
FIRST STORY
As convergence of wealth and retirement at the workplace continues to gain momentum, a major topic at the recent RPA Broker Dealer Roundtable as well as the June Record keeper program, how to manage and utilize participant data becomes critical.
To that end, Broadridge, which acquired fi360 in 2019 and helps firm manage data announced the acquisition of iJoin, a fintech that helps advisors and record keepers leverage that data.
As more record keepers are making participant data available to partner firms as well as trying to figure out how to offer wealth services to their participants, firms need help managing the data and making it actionable in a timely manner which is what iJoin has been focusing on the past few years. Along with capturing IRA rollovers and offering managed accounts, iJoin in enabling the industry offer retirement income.
Penchecks, which partnered with iJoin on an IRA rollover solution, Next Level IRA, recently won a Wealthies Award for their initiative.
Next story:
401Go, a budding fintech record keeper, announced an innovative program to match advisors with plan sponsors which will become increasingly important as plan formation explodes due to state mandates and tax credits facilitated by group plans like PEPs.
Though some have been skeptical of fintechs like 401Go calling it an unsustainable business model, someone must deal with these smaller, starter plans which most legacy providers struggle to profitably serve which likely prompted Hancock to partner with Vestwell.
With Guideline now part of Gusto, the opportunities for other fintechs increases especially for innovative firms like 401Go as the sale of Guideline validates this business model likely to lead to increased investments and deals.
Next story:
Fidelity Investments released the 16th edition of their 2025 plan sponsor survey which showed that 92% of plans work with an advisor.
Chris Alpaugh, head of Fidelity’s DCIO channel, stated that plan sponsor focus has shifted to advisors engaging and helping participants with a whopping 93% implementing financial wellness programs and 2/3s stating that it has been very impactful.
Data on what % of plans are expected to switch RPAs was not collected this year.
The survey was conducted this past January with 1,144 plans with over $3m and 25 EEs, 80% under $250m and 44% with plans $50-$249m. These plans were not necessarily record kept by Fidelity which was not named in the survey conducted this past January.
NEXT
As the frothy benefits, P&C, RIA and RPA M&A markets continue to percolate, Lincoln International, a 1000 EE banker announced their intent to acquire MarshBerry, the leading benefits and P&C investment banker.
Looking to expand their RIA and RPA footprint, MarshBerry hired Rob Madore in 2023 from Wise Rhino Group which focuses on RPAs with their founder, Dick Darian retiring recently. Larger benefits shops like Hub, OneDigital, MarshMac and Gallagher have been successful cross selling retirement plans and continue to acquire them as well as wealth shops as convergence of wealth, retirement and benefits at the workplace continues to explode.
No banker has been able to establish a major foothold in more than one market but with greater resources, perhaps MarshBerry can.
FINALLY
With the DC world abuzz with talk about private investments due to the recent executive order, skeptics like Senator Elizabeth Warren have questioned their suitability while others wonder whether there is a real demand.
To those points, Apollo president Jim Zelter, whose firm partnered with State Street on a TDF, stated that they will take a cautious approach when offering private equity to DC plans focused on investment grade rather than more volatile equity strategies.
As the industry awaits guidance from the DOL, some advisors are seeing real interest from C-Suite participants who might have private investments in their personal portfolios as well as younger participants who have a longer time horizon less concerned about liquidity and volatility than those closer to retirement.
FINISH
So those were the most important stories from the past week. I listed a few others I thought were worth reading covering:
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AARP joins lawsuits against TIAA as allegations expand in amended filing
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Kitces says tech is not materially lifting advisor productivity
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Lincoln hires long time industry vet Jason Crane to lead retirement services
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JD Power digital study of record keepers reveals increased focus on security
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T Rowe releases DC consultant survey
A note about the Manulife John Hancock recent Pontera announcement which many media outlets have characterized as a partnership. Rather it is a collaboration to create efficiencies for advisors to approve outcomes, still a really big deal.
#401k #Real #Talk #Episode #September