News Archive

"Most advisors are using artificial intelligence (AI) to gain incremental efficiency by automating routine tasks, but the larger opportunity lies in redesigning workflows to enable proactive plan monitoring, true personalization at scale, and scalable expertise.... Differentiation is more likely to come from disciplined integration rather than speed, combining AI with human oversight, compliance guardrails, and validation protocols."  MORE >>

"[M]any advisors say they find it easier to turn plan participants into clients than acquiring clients through traditional channels.... 9% of advisors surveyed work with more than 20 plans, while 26% don't serve any defined contribution plans at all. Nonetheless, a majority are finding success by engaging participants through workplace retirement relationships[.]"  MORE >>

"What was once a glossless business has since become a prize for buyout firms, which see the steady growth of the $14 trillion market for US defined-contribution retirement plans as a potential source of juicy returns. ... Some buyout shops see profit in handling retirement plans and ancillary businesses. Others see higher-end wealth management and its more lucrative fees as an attractive target at a time when the rich keep getting richer."  MORE >>

"[M]any advisors and record keepers are looking beyond omnibus accounts to focus on and serve individuals in the plans they manage, leveraging worksite access and endorsement, whether explicit or implicit, by sponsoring employers.... Also driving the move beyond plan-level products and services is the need and desire for personalization.... Managed accounts are the next inevitable step, but only through better engagement, use of data and AI."  MORE >>

"Strategic use of guardrails, backup plans, and market stress testing can help firm owners make more confident and strategic decisions over time. Further, reducing low-reward risks while doubling down on growth-aligned ones allows advisory firms to scale more sustainably. Advisors who understand and intentionally shape their firm's risk profile are better equipped not just to survive, but to grow something uniquely molded to their long-term vision!"  MORE >>

"[T]he confidence boost tied to having an advisor is actually most pronounced among lower-balance savers. In other words, professional guidance may be especially impactful for younger employees who are still in the early stages of building wealth. That matters, because Gen Z is already engaging with retirement saving."  MORE >>

"Nearly 70% of remote and hybrid workers say their work-life balance has improved over the past year, with a similar share reporting lower work-related stress compared with office-based work. Job confidence remains strong as well: 75% of workers feel secure in their roles, and close to 80% report high job satisfaction."  MORE >>

"Plan sponsors rely on providers because they cannot realistically master this level of detail themselves.... Providers who want to avoid being swept into the catch-up mess should focus less on marketing readiness and more on structural honesty. First, stop oversimplifying.... Second, document limitations clearly.... Third, help sponsors build internal processes.... Finally, resist the urge to promise protection."  MORE >>

"Recordkeepers are expanding into wealth management, managed accounts, and participant-level services -- areas once reserved for advisors.... These dynamics risk becoming co-option -- where advisors, dependent on recordkeepers for referrals, technology, and even marketing support, lose their independence. When that happens, plan sponsors and participants may face higher costs, less transparency, and weaker fee negotiations."  MORE >>

"All baby boomers will be older than 65 at the start of the next decade ... That's a big pipeline of retirees, many who will be seeking guidance on managing their retirement nest egg. And it creates an opportunity for you to position your practice as the go-to source for comprehensive retirement income solutions and develop a more loyal and committed client base."  MORE >>

"For advisors who want to help plan sponsor clients begin proactively looking at plan providers' utilization of AI, here are six ideas: [1] Start doing due diligence ... [2] Understand a recordkeeper's AI priorities ... [3] Get knowledgeable about data-security risks ... [4] Learn about hallucination risks: ... [5] Look into protections if problems occur ... [6] Talk proactively about advisory firm's AI use."  MORE >>

"While ChatGPT can tell you that you need an MRI for your knee pain, it can't tell you that the imaging center five miles north charges $150 while the one downtown wants $1,800 for the exact same scan. ... ChatGPT Health can coach employees on diet, track workouts and explain medical terms. That's genuinely valuable for healthfulness and engagement. But when employees still don't understand their benefits coverage or how to find affordable, in-network care, we're only solving part of the equation."  MORE >>

15 pages. "Unlocking the potential to grow sustainably is a key challenge for many health insurers, especially in the face of high medical inflation driven by medical advancements, heightened geoeconomic uncertainties and ageing societies.... This article explores the use of a capital optimization solutions framework that aims to maximize strategic value from available capital resources while ensuring that firms' regulatory requirements and other business constraints continue to be met."  MORE >>

"Seventy-one percent of recordkeepers list PEPs as a major or moderate strategic priority and 63% believe the growth of PEPs will have a positive effect on their recordkeeping business.... 88% of recordkeepers say participant personalization is a major or moderate strategic priority, with 82% of recordkeepers planning to increase allocations of resources to participant analytics."  MORE >>

"Identifying clients' goals, comparing them to the footnotes and helping them find a product that will allow them to reach their goals sooner will solidify the advisor's position as an experienced resource.... Clients are often unaware if their annuity includes a surrender period, or they assume the surrender period for one annuity will be the same for each product ... It's important for advisors to clarify that while these products are marketed as having no fees, the returns shown to clients are net of all fees."  MORE >>

"[1] Retirement plans now create risk for employers and advisors.... [2] Employee financial wellbeing plays a larger role in retirement plan participation.... [3] Benefits decisions are increasingly interdependent."  MORE >>

"Many firms are at a crossroads. Baby Boomer founders are preparing to retire, while younger professionals, ambitious, curious, and digitally fluent, cycle through roles faster than ever. The result is a widening talent gap, an urgency for succession planning, and a real need to rethink how we build and sustain advisory teams for the next decade. But here’s the opportunity. This period of change can also be your greatest growth window if you approach it strategically."  MORE >>

"There really is no such thing as a 'kind of' correction with a qualified retirement plan. An error is either fixed or it's not. A plan either remains qualified or it doesn't. There is nothing in between. Some people do not understand this or choose to ignore it, putting their company's entire qualified retirement plan (and all the employees' money in it) at risk of taxes and penalties. So, what's the best way to handle these situations?"  MORE >>

"As record keeper consolidation disrupts service and relationships with the larger brands, many of which are focusing on participants' services and offering almost zero-profit pricing, which puts them in competition with advisors, independent record keepers exist in a totally different universe. Their cost structure with much fewer field salespeople and lower corporate overhead does not require the same type of scale to survive or thrive, with owners and senior managers directly involved in the day-to-day."  MORE >>

"Retroactive adoption of cash balance plans is a powerful tax planning tool for business owners aiming to reduce taxable income while accelerating retirement savings. CPAs play a crucial role in identifying potential candidates for this type of plan and coordinating with plan administrators."  MORE >>

"As larger providers get scale, cost savings diminish with each acquisition. The holy grail is offering participants wealth services ... Depending on the business models and market focus, the list of viable record keepers may be limited. ... Advisors need to narrow their partnerships to record keepers, first, not likely to exit the market, but also are willing to collaborate with reasonable rules of engagement, allowing for both parties to make money, which requires advisors to have scale, savvy and determination as providers go through the same process themselves."  MORE >>

"DataDasher Inc. CEO Alexander Kearns claims financial advisers can save as many as 10 to 15 hours per week when AI is implemented in daily workflows with responsibilities such as pre-meeting briefs, follow-up communication and on-demand portfolio context."  MORE >>

"The Life Insurance and Annuities Committee, an arm of the [NAIC], plans to consider adoption of an Annuity Best Interest Regulatory Guidance and Considerations document [on December 9] ... Some state regulators want the guidance to help states ensure that annuity sellers treat clients well. Groups for annuity issuers and sellers want the guidance to reduce the odds that annuity sellers will have to cope with state and federal regulation at the same time."  MORE >>

"Finding issues is second nature for TPAs. Whether it's failed ADP tests, nondiscrimination risks, or plan design flaws, you catch these issues in an instant because spotting them is second nature to you. But if clients hear 'it's wrong,' without a clear understanding of why it's wrong, then they can walk away feeling overwhelmed. Stacking problems on problems makes the plan feel like a burden instead of a benefit.... [I]nstead of stopping at the problem, pair it with a clear, actionable solution."  MORE >>

"[R]espondents are looking for deeper conversations with their advisors, and especially on topics including how to file Medicare benefits in the future. Fifty-six percent of respondents who work with a financial professional say they haven't received advice on how and when to file for Medicare, and 72% of all respondents, despite whether they do or do not receive guidance, plan to ask about or work with a professional who can offer Medicare advice."  MORE >>