Having been concerned with many RPA trade awards like 401kWire’s Most Influential and NAPA’s Wingmen honoring the perfect DC wholesalers, I’ve witnessed a little bit of award fatigue. As a Wealthies decide for the previous two years and having attended since I started writing for WealthManagement.com in 2022 after leaving InvestmentNews and, earlier than that, NAPA Web, I’ve come to comprehend the significance of the Wealthies for RPAs and the organizations that assist them.
Not a distinct segment market, outlined contribution belongings have been $12.3 trillion on the finish of the third quarter of 2024, not together with $15.2 trillion in IRAs, most of which emanate from DC plans, and $42.4 trillion general in retirement belongings, in keeping with the ICI. This market has garnered the eye of the wealth administration trade, in addition to the most important asset managers and lots of non-public fairness corporations. DC belongings are sticky and have a tendency to stay available in the market even throughout recessions, making them an amazing hedge towards particular person investor belongings—RPAs don’t get blamed as a lot when returns are down despite the fact that charges and revenue margins are decrease. Wealth and retirement are the quintessential noncorrelated markets for monetary advisors and asset managers.
The explosion of small and start-up plans due primarily to state mandates facilitated by tax credit and group plans like PEPs has compelled many wealth advisors to assist wealth shoppers who personal or run a enterprise with their retirement plan, which retains an RPA out who might probably disrupt the connection whereas additionally trying to find wealth or monetary planning shoppers. Former Morgan Stanley CEO James Gorman has said that the workplace will be the No. 1 source of assets for the firm.
These forces brought on Creative Planning to buy Lockton’s retirement plan division with $110 billion and helped enhance their valuation to over $13 billion earlier than taking in a minority funding by TPG and pushed Helloghtower to acquire $1.6 trillion institutional investment consultant NEPC in addition to Mariner to purchase $109 billion Andco and recently $292 billion Cardinal Investment Advisors.
Led by Captrust, virtually all RPA aggregators at the moment are centered on wealth alternatives inside the DC plans they handle, shifting a majority of their M&A.
The Wealthies are the one awards that embrace each the wealth and RPA industries, and WealthManagement.com has turn out to be the thought chief for the convergence of wealth and retirement at work. RPA-focused awards, publications and teams caught within the 401(ok) echo chamber could also be lacking the larger image as a result of their restricted viewers attain.
Retirement plan assist and advisors companies Wealthies award categories embrace:
I encourage all RPA trade suppliers, advisory corporations, DCIOs and tech corporations that assist advisors to appoint their agency for all relevant Wealthies classes to indicate not solely how they’re supporting RPAs and their plans and individuals however are additionally increasing their attain to the rising variety of wealth advisors and trade suppliers who’re changing into extra on this $42.4 trillion recession proof “area of interest” market.
