IN 29.05

Annuities are ready to meet the moment

Why your multigenerational clients should take another look.

BY ANDREW FARRELL, MSJ SVP, RETIREMENT SALES, DISTRIBUTION AND MARKETING

For many of your pre-retiree clients, their frame of reference for retirement may be their parents and grandparents from the Greatest and Silent Generations. These retirees may have tapped into old-school employer pensions, bank accounts and even the earliest 401(k)s for income alongside Social Security. Those retirement assets often ended up in an annuity to help protect from loss and create a “paycheck in retirement.”

The experience of saving for retirement can look drastically di erent for today’s pre-retirees, whose experiences may now include a patchwork of 401(k)s from multiple employers, IRAs or other types of brokerage accounts, and few employer pensions, mixed with a growing conviction that Social Security won’t be there for them when they need it.

There’s an opportunity here to help educate your clients on the potential benefits of adding annuities to their investment mix even before retirement, but a lack of knowledge about the product can be an obstacle to that conversation. It can also be an opening to a fuller understanding of their portfolio.

As your current pre-retirees gets closer to retirement, they may still think about annuities in outdated terms:

•Annuities are only for retirement.

•Annuities are only for converting lifetime savings into income.

•Annuities are only suitable for very conservative investors.

Do you see any of your clients in those sentiments? If so, it may be time to take a fresh look at annuities and how they can be an e ective way to save through di erent life stages.

Balancing today’s uncertainty with tomorrow’s needs

Today’s retirement realities already give many clients cause for concern. Insecurity about how they will pay for their needs and wants after they retire looms large for those getting closer to the traditional retirement age. Help them understand the nuances of balancing need against risk, and help broaden their awareness of overlooked alternatives to help them achieve their investing goals.

From generation to generation

A comprehensive financial plan takes client attributes and situations into account, and life stage is one of them. Some principles cut across generations: having a good long-term plan and maintaining a diversified approach that includes stocks, bonds and annuities, etc. Looking across generations, we can see the commonalities—and the di erences.

Baby boomers (1946–1964)

Primarily in retirement now, this cohort may rely heavily on guaranteed income for their living expenses. Conventional wisdom has suggested a diversified portfolio that favors less risky holdings. But with the increase of years in retirement, this generation has had to learn how to balance growth and protection in real time, and a de-risking approach that includes annuities may be one way to support a goal of portfolio longevity.

Gen X (1965–1980)

Your next big wave of pre-retirees are at their peak earning years, with the younger half of the generation still in mid-career. A traditional shift toward less-risky assets in the years leading up to retirement should be reexamined in light of this generation’s ongoing financial responsibilities beyond just saving for retirement. Gen Xers may want to evaluate taking a degree of risk to build assets as they get closer to needing this income stream, and annuity solutions that o er some growth, downside protection and additional flexibility could be an option to consider.

Millennials (1981–1996)

Although it’s not too late to think about saving for retirement, this age group should be well into growing their savings. There’s time to rebuild portfolios when the markets drop, and learning how traditional investment vehicles perform across market cycles can help them decide if alternatives like annuities may make sense for them as an accumulation tool, even this far from retirement.

In times of heightened market uncertainty, open communication helps your clients feel informed about their options and reinforces your value in guiding them toward their financial goals. Symetra can help you have those conversations with our educational resources and flexible annuity solutions that can aid clients in planning for a secure retirement.

It’s time to learn more

Any annuities discussion with clients may require even more education on their potential value in a portfolio. Sometimes just taking it back to basics is the best place to start, even for long-time clients.

Scan the QR code and start the conversation with your Gen X clients.

Editorial

‘Change is the only constant in life’

BY ANDY BURT

If you have lived long enough, you probably know this maxim is true and have uttered some variation of it at some point. The phrase has been ascribed to Benjamin Franklin but likely has much more ancient origins. Work, school, life events … all these and more are the impetus for evolution.

There are perhaps no better words to describe the current nancial, political, and social trends than “constant change.” At InvestmentNews , we understand this from a nancial landscape as well as a team perspective.

You’ve probably noticed that I’m a new face with IN. This publication has a rich legacy of unveiling the history of nance and its impact on wealth management. It has covered bulls and bears, nancial crises, presidential administrations, and more. The industry’s change is foundational for why we even exist. As the landscape shifts, our editorial team continues to evolve to ensure our readership knows what it needs to know to reach your organization’s goals. And now I get to be a part of this amazing experience.

What comes next amid this

sea change? More than ever, the environment is de ned by independent-minded advisors. Successful advisors see an opportunity to increase market share by going independent and increasing autonomy over their and their rm’s future. This reality also means you need to be more informed

recognize the most in uential thought leadership in the industry, including our 5-Star independent advisors.

“Change happens fast; proactiveness must replace reactiveness”

than ever. And not only informed of market news, competitive forces, and investment products but also what it means to be an effective leader, a responsible founder, and an oracle for where things are headed. Change happens fast; proactiveness must replace reactiveness.

InvestmentNews understands this reality, so our mindset too is to be proactive in our coverage, our insights, and our delivery of what is most critical. We will continue to grow to meet your needs as independent-minded advisors and

InvestmentNews is and always will aspire to be the most authoritative voice on the essential news, analysis, commentary, interviews, and insights for you, our readership. Revisiting the phrase at the top, its most likely origin is found in Greek antiquity, where philosopher Heraclitus of Ephesus’ beliefs about wisdom involved the idea that you can never step into the same river twice. Everything always changes – the river, the riverbed, and even you.

We put this mission above all others – as you adapt, strategize, and grow, so will we. And that, I can assert with great con dence, is a constant.

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Please

LONGEVITY FEARS DENT RETIREMENT SPENDING

ARE ADVISOR MOMS HAPPY WHERE THEY ARE?

A study by The Ensemble Practice found nearly half of mothers in advisory practices have at least entertained the thought of leaving their rm for another job.

Source: The Ensemble Practice report, Understanding the Unique Experiences of Moms in Advisory Firms, 2025.

In the latest survey research by the Employee Bene ts Research Institute, more than three in four retirees say they’re able to spend money how they want, and nearly half agree they spend less because they’re worried about running out of money.

A closer look at retirees’ spending con dence

Over the decade ending in 2023, fee-based advisors at RIAs and hybrid RIA rms adopted ETFs more quickly in client portfolios compared to full-service brokers operating in wirehouses, as well as regional, independent, and bank broker-dealers, according to Cerulli.

HOW TOP AI NOTE-TAKERS STACK UP

In a controlled test, wealth tech consultancy rm The Oasis Group gave Jump and Mili top marks in note-taking accuracy, with both earning a 96.15 percent rating. However, Jump was able to outdo Mili on other measures in the research including action-item accuracy, CRM integrations, and contextual understanding.

Source: The Oasis Group AI note-takers research report, 2025

Source: 2025 EBRI/Greenwald Retirement Con dence Survey

ARE REITS MAKING A COMEBACK?

Source: Cerulli Associates, The State of US Retail And Institutional Asset Management, 2024

RILAS GAIN GROUND AMID VOLATILITY

Tariff-driven economic

turbulence and stock market volatility could fuel further demand for annuities as a product for investors near retirement age to limit their downside exposure

BY ANDREW COHEN

Annuity sales remain near record highs as investors prioritize stability. RILAs, with upside potential and downside limits, surged 21 percent year over year in Q1 2025.

“I think anytime you see more volatility in the market, you’re going to see an uptick in annuities,” says Mark Harper, director of case planning at Triad Partners, a Kansas-based eld marketing organization. “Anytime the markets go up and down and clients are concerned and worried, an annuity is a natural landing spot where we have downside protection and can still participate in some of the upside growth.”

Total US annuity sales reached $105 billion in Q1 2025, 1 percent below the record set in the rst quarter of 2024, according to LIMRA. March of this year was the second-highest annuity sales month ever

recorded by LIMRA, which found 2022, 2023, and 2024 to be three straight years of record-high annual annuity sales, including a 13 percent jump from 2023 to 2024.

“Annuity products are priced off of the 10-year treasury, and when the 10-year treasury started to increase in 2022, it greatly enhanced annuity products versus what they were over the last 20 years, and it created a signi cant amount of activity,” says Chad Druvenga, CEO of CBS Brokerage, which partners with advisors and broker-dealers to provide them with access to products from insurance companies.

Among the different types of annuities, the registered index-linked annuity (RILA) had the biggest surge of Q1, with sales up 21 percent year over year to $17.5 billion, according to LIMRA. RILAs offer more upside than their xed-index annuity counterparts and are contracted to in-

clude a buffer or oor percentage to limit potential investment losses.

“We’ve seen signi cant amounts with our broker-dealer partners on the RILA space,” says Druvenga, whose rm operates under the same parent company as the broker-dealer Kestra. “We’re seeing a lot of RILA activity focused more on the accumulation sales, where they have an attractive buffer available to them, and also some downside protection in a volatile market. With the volatility in the market, RILAs are very attractive.”

Investors looking for more of a guaranteed income stream will prefer xed-income annuities (FIAs) that offer principal protection with returns ranging from 4 percent to 8 percent annually. Fixed index annuity sales fell 7 percent year over year

“Anytime the markets go up and down and clients are concerned and worried, an annuity is a natural landing spot where we have downside protection and can still participate in some of the upside growth”

MARK HARPER, TRIAD PARTNERS

SectorFocus

to $26.7 billion in the rst quarter of 2025 but still ranked as LIMRA’s fth-highest recorded quarter in history. “Because of how the markets worked, xed index annuities are priced the best for guaranteed income today in many scenarios,” says Druvenga.

“The downturn in xed annuities is because we’ve seen this enormous growth since 2022, so it’s still really at record levels when you look at over the last 15–20 years,” he says. “So I think that’s a little bit misleading when you look at those lower numbers –because we were at the top and we had a little bit of a downturn. I think we’re gonna see an increase again around xed annuities.”

“The downturn in xed annuities is because we’ve seen this enormous growth since 2022, so it’s still really at record levels when you look at over the last 15–20 years”

CHAD DRUVENGA, CBS BROKERAGE

POTENTIAL MISUSE

Several other types of annuities (variable, single premium immediate, deferred income), alongside their accompanying fees, commission rates, and surrender periods, make annuities a complex product that can be misused by advisors.

The Financial Industry Regulatory Authority (FINRA) ned Florida-based AGA Capital $138,591 in May, with the regulator claiming AGA’s policies “failed to reasonably describe the steps that supervisors must take to evaluate whether the registered representatives had a reasonable basis to believe that the RILA recommendations were in the customers’ best interest.” FINRA also barred broker Christopher Reynolds last year after he forged customers’ signatures on annuities documents.

LEARNING CURVE

Annuities carry surrender periods that can last between three and 10 years but are usually between six and eight years. The surrender period marks the time after purchase that clients will face a penalty for taking out money from the annuity.

“I think bringing a client up to speed if they’re not really familiar with annuity concepts, it takes a while to educate them and for them to be comfortable with moving forward with a decision to make a change,” says Nick Strain, senior wealth advisor at Halbert Hargrove. “Annuities can be simple, but they can also be complex. If you’re trying to not take a single premium annuity right away, if you’re trying to add some layers of defense or layers of guaranteed income, especially deferred income, there’s multiple options.”

Halbert Hargrove, a California-based RIA with $3.5 billion in assets under management, part-

ners with the fee-based DPL Financial Partners to sell annuities. DPL’s software integrates with Envestnet to share annuity and insurance product data with advisors. Another ntech provider of annuities product data is Luma Financial Technologies, which is used by both CBS Brokerage and Triad Partners. Luma’s Lifecycle Manager lets advisors view annuity policies they’ve sold to clients, compare potential outcomes, and identify potential annuity upgrades

within portfolios as forthcoming rate cuts could impact pricing of annuities.

“The risk of rate change is continuing to hover over everybody at the fed; what we’re seeing is a lot of activity on our platform around evaluations of a 1035 [exchange] or replacement, where they would take funds out of an existing annuity and redeploy them into an annuity with some more attractive interest rates, especially the multi-year guaranteed annuity space,” says Jay Charles, director of annuity products at Luma.

ADVISORS INCREASINGLY VIEW ANNUITIES AS AN ESSENTIAL PART OF THEIR PORTFOLIOS

OFFERING STABILITY, GROWTH DURING ROCKY MARKETS

Though only a decade old, registered index-linked annuities have gained in popularity as their myriad features and bene ts suit investors looking to navigate frothy investing waters, says Myles Lambert, of Brighthouse Financial

BY GREGG GREENBERG

Not all great artists are recognized or appreciated in their time. Van Gogh, Monet, and Cezanne are just a few masters who failed to crack the market until later in life. Or in the case of other artists, well after their time had passed.

The same can be said for registered index-linked annuities (RILAs), which have been in the market for over 10 years yet have only recently been heralded by advisors and investors alike. While they are certainly not as colorful as impressionist paintings, their recent climb trends similarly to wide popularity and adoption.

As Myles Lambert, executive vice president and chief distribution and marketing of cer at Brighthouse Financial, tells InvestmentNews in an exclusive interview, RILAs have indeed been making a massive, ahem, impression of late, especially as more investors seek the stability of guaranteed lifetime income streams in an increasingly volatile market.

GREGG GREENBERG: RILAs have been in the market for over 10 years, gaining popularity over time. What do you think has helped make them popular?

MYLES LAMBERT: As more people are seeking ways to prepare for retirement, many of them are asking the same question: how can I not only protect but also grow my retirement savings? RILAs are thoughtfully designed to help achieve both objectives, striking a balance between potential growth opportunities and a measure of downside protection. That is a powerful concept that may be attractive to many clients, especially those who are nearing retirement.

The widespread appeal of this product category stems from its innovative design and compelling value proposition. RILAs can provide

the opportunity for participation in market growth, up to a certain percentage, by tracking the performance of one or more market indices. In addition, RILAs provide some protection against market volatility to help clients manage that particular risk. These integrated design features work together to deliver positive outcomes, supporting clients in their pursuit of individual retirement goals.

The ability of RILAs to address different market scenarios has also helped these products resonate with some clients. For instance, many clients like knowing that, with an RILA, they have a level of protection in the event markets go down. In turn, that con dence may help clients remain invested during market volatility, which can be important for reaching their long-term nancial goals.

GREENBERG: What are some ways in which RILAs have evolved?

LAMBERT: At their foundation, RILAs remain the same products they were when they were introduced more than a decade ago. However, there is genuine consumer demand for these products, which has not only fueled growth in RILA sales but also spurred their ongoing evolution. Over the years, our industry has continued to nd new and enhanced ways to enable RILAs to further meet the changing needs of consumers. The introduction of new indices, levels of downside protection, and crediting strategies – some of which allow for growth even when equity markets decline –are among the ways in which our industry has responded to these needs. For example, with respect to crediting strategies, some RILAs offer participation rates that may allow clients to capture more than 100 percent of the tracked index’s growth. Through these enhancements, consumers have been given additional choices when it comes to tailoring

RILAs to their individual needs.

Recently, some RILAs have started offering clients the option to receive a reliable stream of guaranteed lifetime income. This bene t is in response to interest among many investors in additional sources of lifetime income that can help them mitigate the risk of outliving their assets. RILAs that provide this source of income, which lasts for life regardless of how the markets perform, do so through an optional income rider. Income riders require the client to stay within the parameters of the rider and typically come with an additional charge. In addition to providing a source of income, RILAs with an income rider also offer clients growth opportunities by tracking equity markets, which can assist them in reaching their retirement goals.

GREENBERG: Markets can be unpredictable, especially in 2025. How can RILAs help clients remain invested during times of volatility?

LAMBERT: Understandably, many investors may be tempted to pull out of the markets during periods of downturn. However, doing so can lead to missing out on positive market days, which can have an impact on their portfolio’s long-term performance. By guarding against some or all losses during periods when markets are down, RILAs can play a role in helping investors stay invested in the markets should they turn volatile. Some investors may seek guidance from their nancial professional during periods of market uncertainty. Financial professionals can emphasize to clients who own RILAs that these products are speci cally designed to help safeguard a portion of their portfolio in such challenging conditions. This can lead to positive conversations at times when they may be most impactful, helping clients to remain invested and avoid behaviors that could cost

“RILAs can provide the opportunity for participation in market growth and … provide some protection against market volatility… These integrated design features work together to deliver positive outcomes”

Myles Lambert, Brighthouse Financial

them the opportunity to bene t from the long-termgrowth potential of the markets.

This year’s market uctuations highlight the value of RILAs. As demonstrated by the recent volatility, having a strategy that provides growth opportunities coupled with a level of downside protection can help clients to invest con dently and stay the course. This underscores the bene ts RILAs can offer to a portfolio, making these products appealing to clients.

GREENBERG: Are there opportunities to create greater awareness of this product category since it is still relatively new?

LAMBERT: As a relatively new product category, RILAs present signi cant opportunities to enhance awareness and understanding of the role they can play in helping clients work toward their retirement goals. That said, carriers, nancial professionals, and industry groups have done an outstanding job of building awareness of RILAs in the relatively

short amount of time this product category has been available. The rapid growth RILAs have experienced is in large part a re ection of the success of those efforts. For example, according to LIMRA, 2024 marked the 11th year in a row that RILA sales hit a new high and the rst year in which RILA sales surpassed traditional variable annuity sales.

At Brighthouse Financial, we actively promote greater awareness and understanding of RILAs, along with our other offerings, through a variety of initiatives tailored toward both consumers and nancial professionals. This includes leveraging advertising, social media, white papers, and other forms of communication, as well as engagement opportunities with the media. In addition, our website provides consumers and nancial professionals with access to a robust set of tools and resources to enhance their knowledge of our products, including thought leadership articles and videos on various RILA-related topics. One of the standout features of our tools and resources is their ability to help empower consumers who prefer to conduct their own research, effectively addressing their needs and preferences. All these efforts re ect our company’s belief that promoting nancial literacy and education is fundamental to delivering on our mission to help people achieve nancial security.

I believe there are still meaningful opportunities for our industry to tackle common misconceptions about annuities, fostering greater clarity and trust among consumers. Over the years, many consumers have come to better understand and appreciate how annuities can help them reach their retirement goals, which re ects the progress that our industry has made in this area. However, there’s more work to do, and our industry remains focused on ensuring consumers and nancial professionals have the right information and tools, so they can make informed decisions about these products and their nancial futures.

GREENBERG: In light of the ever-evolving retirement landscape, there is much talk today about the importance of guaranteed lifetime income. How have insurance products evolved to support Americans’ need for guaranteed income?

LAMBERT: Our industry has continued to respond to the growing demand from consumers for products that can provide them with a source of guaranteed income in retirement. Underscoring the degree to which retirement income is top of mind for consumers, a survey conducted in 2023 by the Insured Retirement Institute found that nancial professionals selected “secure income” more often than both “asset protection” and “asset growth” when asked to pick the top nancial goal expressed by their clients.

When RILAs were introduced, their initial core value proposition was a balance of growth potential and a level of downside protection. Today, some RILAs offer additional value in the form of an optional lifetime income rider that is designed to help clients supplement their retirement income with an income stream they cannot outlive.

Access to guaranteed lifetime income is also now being offered through some employers’ de ned contribution plans. Broadly speaking, these strategies, through combining annuities and targetdate strategies, provide plan participants with the option to receive a guaranteed stream of income for life. It is exciting to see annuities being leveraged in a variety of innovative ways to help workers plan for the retirement they envision and deserve.

NAVIGATING AN UNCERTAIN WORLD

Advisors discuss how market volatility is creating demand for guaranteed income streams

BY GREGG GREENBERG

Everybody on Wall Street is constantly talking about uncertainty and its impact on returns and retirement. Tariffs, taxes, Trump’s tweets – the whole kit and caboodle. No matter where the conversation starts, it always comes back to uncertainty.

So let’s ip the nancial script and totally switch things up – shall we?

For a change of pace, let’s chat about certainty – as in annuitized, consistently recurring income streams – because that’s what a whole lot of nancial advisory clients want to talk about right now, anyway.

In the rst quarter of 2025, US annuity sales reached $105.4 billion, which was 1 percent below the record sales of the prior year’s rst quarter, according to LIMRA. For example, Jackson Financial reported retail annuity sales of $4 billion in the highly volatile rst quarter of 2025, up 9 percent from the rst quarter of 2024.

The S&P 500 index, for the record, experienced a negative return of 4.6 percent in the rst quarter of 2025. The CBOE volatility VIX, or the market’s socalled fear index, meanwhile, nearly doubled from 15 to just below 30 over the rst three months of the year before screaming past 50 post “Liberation Day” in early April.

And then sinking like a stone below 20 barely a month later.

Yes, when the bull market turns increasingly tenuous and nerves get rattled, more investors seek out the certainty of annuities. Or are at least open to the discussion of adding them to their portfolios to gain a sense of, yep, certainty.

According to a recent nationwide survey, for example, 91 percent of nancial professionals agree annuities help their clients protect against market volatility, and 86 percent say annuities help them diversify portfolios.

“Annuities that provide a lifetime income guarantee can reduce the pressure to withdraw spending from an investment portfolio during a market decline. This helps reduce sequence of return risk while also providing lifetime income security,” Michael Finke, professor and Frank M. Engle chair of economic security at The American College of Financial Services, says.

Or, as Mallon FitzPatrick, head of wealth planning at Robertson Stephens, puts it more plainly: “When the market feels like a roller coaster, annuities might

be the nancial security blanket clients need.”

CERTAINTY, BUT CHOICES

TOO

When a client seeks stability, as opposed to exibility, FitzPatrick generally recommends low-cost xed annuities with guaranteed withdrawal riders, as clients desire a reliable stream of guaranteed income. In his view, they are a good solution for clients fretful about in ation’s grip or performance sequence risk, or what he calls “the nancial horror story of seeing your nest egg shrink early in retirement.”

“These annuities can be the sleepless-night antidote, focusing on steady income for peace of mind,” Fitzpatrick says.

Elsewhere, Scott Bowers, chief strategy and distribution of cer of insurance exchange FIDx Markets, believes that if a client is concerned about equity risk within their portfolio, a registered indexlinked annuity (RILA) is the best solution. A RILA, for the uninitiated, is a type of annuity that combines the potential for growth based on market index performance with a level of protection against losses.

If the concern is about rising interest rates, a  xed index annuity (FIA), where the interest rate is linked to the performance of a market index like the S&P

“When the market feels like a roller coaster, annuities might be the nancial security blanket clients need”

MALLON FITZPATRICK, ROBERTSON STEPHENS

Clarity you deserve. A retirement planning partner you can trust.

You deserve a provider with the nancial know-how, superior service, and streamlined experiences that strives to reduce the confusion that complicates retirement planning. With Jackson®, you get expertise you can depend on, and a partner who will help you do right by your clients. That’s clarity for a con dent future.

Myth 1

Annuities are only for retirees

Reality:

Annuities can help savers, too

Myth 3

There is no point in buying an annuity for income before retirement

Reality:

Certain annuities can help protect your future income from market volatility, and some annuities can help protect against in ation

Myth 5

The insurance company gets my money when I die

500, can help lower the risk in their xed-income portfolio, according to Bowers.

“For clients approaching retirement who are concerned about longevity and sequence of return risk, the risk of receiving lower or negative returns early in retirement, variable annuities (VA) with a guaranteed income stream can help ensure they do not outlive their savings,” Bowers says.

IF NOT ANNUITIES, THEN WHAT?

To be sure, annuities are not the only nancial instrument that provides certainty in a highly uncertain market and economic environment.

Timothy Smith, founder & CEO, Aurora Private Wealth, for example, often uses buffered structured notes, a xed-income instrument with downside protection, tied to market index performance as a portfolio-calming alternative. Such vehicles avoid the elevated costs, limitations, and “lockup” of annuities, in Smith’s opinion.

“It doesn’t meet the guaranteed lifetime income need, and so it is generally for larger, conservative portfolios,” Smith says.

Terrell Dinkins, president and founder of OBN Wealth Advisors, says clients can simply sprinkle some US Treasuries into their portfolios to create a sense of ease and more exibility than annuities. And because you can still nd decent rates on market CDs, he believes those are still an option, as well as high-yield savings accounts and dividend stocks for income-seekers.

“All of these options provide more liquidity and exibility than an annuity,” Dinkins says.

Myth 2

Annuities cost too much

Reality:

Many annuities are low cost

Myth 4

I can easily create lifetime income from my retirement accounts

Reality:

Besides Social Security and pensions, only annuities guarantee a stream of income that you can’t outlive

Reality: Your bene ciaries can receive payments after you die

Source: Fidelity

“Annuities that provide a lifetime income guarantee can reduce the pressure to withdraw spending from an investment portfolio during a market decline”

MICHAEL

FINKE, THE AMERICAN COLLEGE OF FINANCIAL SERVICES

Still, Finke notes traditional investments simply cannot offer the same protection against longevity risk as an income annuity.

“For a risk-averse retiree, an annuity should allow you to spend about 30 percent more each year without the fear of running out in old age. In reality, people feel more comfortable spending from income than they do from investments,” Finke says.

BREAKING THE ANNUITY ICE

One thing for certain is that annuities have traditionally been seen by retail investors as a more expensive alternative to plain-old, and dirt-cheap, stocks and bonds. That view is not always wrong, despite the drop in annuity fees in recent years.

That’s also the reason why many nancial advisors have avoided the annuity conversation altogether. There is no reason to discuss fees, compared to lowcost ETFs, if you don’t have to. Or so the thinking goes.

That’s why Finke believes it’s best to move away from an investment frame to a lifestyle frame to illustrate the bene ts of annuities.

“If you have a goal of spending $3,000 a month on top of Social Security to cover basic expenses, you

can use a smaller percentage of your overall portfolio to cover this income goal through an annuity than through bonds. This allows the retiree to either spend more on exible expenses or pass on a greater legacy with their remaining assets,” says Finke.

Bowers, on the other hand, introduces annuities to clients and advisors who haven’t used them before through the Insurance Overlays marketplace.

“The solutions you’ll eventually nd in it will enable the seamless integration of an insurance ‘wrapper’ – providing longevity and income solutions –directly within existing managed accounts. The goal is to help expand the number of advisors and clients who have secured retirement income streams,” Bowers says.

Dinkins said he tells his clients that everyone should create a guaranteed bucket of income in their portfolio, especially for those in retirement who truly crave nancial certainty.

“The only income certainties are pensions, social security, at least for now, cash value life insurance, and annuities. It’s essential when you reach retirement to feel con dent knowing that your basic necessities can be covered if the unexpected happens,” Dinkins says.

ADVISORS

THE POWER OF INDEPENDENCE

IN THE increasingly crowded nancial advisory space, technical competence and market acumen are no longer enough. Today’s clients expect more – and they’re vocal about what makes a nancial advisor not just competent, but truly exceptional. And within that, being independent brings its own added dimension that more and more clients are seeking.

InvestmentNews has compiled a prestigious list of the 5-Star Independent Advisors 2025 based on real testimonials from clients across the country. What has emerged is a clear portrait of what it takes to stand out: empathy, clarity, commitment, and a holistic human approach.

EMPOWERMENT THROUGH INDEPENDENCE

As the industry evolves, more nancial professionals are embracing independence – and for good reason. According to Stephen Caruso, associate director of wealth management at Cerulli Associates, the independent model empowers advisors to deliver a more personalized, agile, and planning-centric experience that traditional channels often cannot match.

Free from the product-pushing mandates often found in wirehouses or bank-af liated rms,

independent advisors can offer broader product selection and portfolio construction tailored to each client.

“The independent channels really are focused on that nancial advice,” says Caruso. “In some cases, you have more choice around product selection, which can lend itself to creating more unique portfolios for your clients or helping them kind of access the markets in a diversi ed or different way.”

Caruso also notes that Registered Investment Advisors were early adopters of the planning- rst model, emphasizing long-term-goal achievement rather than short-term sales.

THE CHALLENGE AND REWARD OF ENTREPRENEURSHIP

Yet, independence isn’t without its hurdles. Advisors leaving the structure of large rms must learn to wear multiple hats: advisor, CEO, operations manager, and marketer.

“You may have been really good at managing your clients,” says Caruso, “but independent advisors need to spend more time focusing on the nitty-gritty, administrative details – and that’s a challenge.”

The most successful independent advisors navigate this shift by developing strong time

PERCENTAGE OF US INVESTORS WHO WORK WITH A FINANCIAL ADVISOR

management skills and learning to work on the business, not just in it. Scaling an independent practice requires building systems, delegating, and embracing a leadership mindset.

Caruso warns against becoming an “accidental leader” stuck in day-to-day minutiae.

STAYING AHEAD THROUGH EDUCATION AND COMMUNICATION

With the constant evolution of investment products, especially the growing interest in alternative assets, leading independent advisors have to stay current with market developments and product innovation to offer relevant, timely solutions.

Equally crucial is the ability to communicate these insights clearly to clients. Whether through internal tools, partnerships with asset managers, or external research sources, staying informed isn’t just about knowledge – it’s about translating that into actionable client guidance.

LISTENING FIRST

Across multiple client accounts, one trait rises to the top: the ability to listen. For instance, one of the 5-Star winners, based in South Carolina, was praised not only for their technical skill but for treating nancial planning as a partnership –centering clients’ goals and values at every step.

Active listening allows advisors to uncover deeper motivations, family dynamics, fears, and aspirations that may not show up on a balance sheet.

Another standout 5-Star advisor was lauded for her empathy, especially in emotionally complex situations like divorce or the loss of a spouse. Her clients describe her as an advocate – someone who listens deeply, asks the right questions, and walks with them through challenging transitions.

CLARITY IN COMPLEXITY: MAKING THE TECHNICAL UNDERSTANDABLE

Another distinguishing characteristic is the ability to demystify the complex. Whether it’s outlining estate planning strategies or managing multifaceted wealth divisions during divorce, exceptional advisors simplify without condescending. Clients praise being given succinct and clear explanations that always circle back to their personal goals.

Reports of 5-Star advisors being able to break down intricate nancial concepts into digestible, emotionally resonant advice were repeatedly mentioned. In an era of overwhelming information, clarity is a lifeline.

RESPONSIVENESS AND RELIABILITY: SMALL GESTURES, BIG IMPACT

Many clients highlighted the 5-Star advisors’ ability to respond swiftly – sometimes within the hour. In an age where delayed responses from service providers are the norm, prompt communication builds trust and demonstrates commitment. It’s about offering clients peace of mind that they’re not alone in navigating decisions.

HOLISTIC SERVICE AND GOING BEYOND THE NUMBERS

Clients increasingly value a 360-degree approach that transcends investment portfolios. Top advisors coordinate with estate planning attorneys, CPAs, and family members to ensure alignment on broader goals. Some help navigate healthcare, support charitable giving, or integrate faith and values into investment strategies.

One 5-Star advisor was described as an “anchor” for his clients. He weaves deep personal relationships into nancial planning, even engaging clients over shared hobbies. His dedication builds trust that goes well beyond returns.

Similarly, another 5-Star winner was commended for helping elderly clients with everything from tech issues to DMV renewals – treating clients not just as investors but as extended family. This concierge-level support

re ects a service ethos that transcends industry expectations.

COMMUNITY ENGAGEMENT AND PHILANTHROPY: VALUES IN ACTION

Several of the 5-Star advisors distinguish themselves through philanthropic efforts and community involvement, supporting organizations like Ronald McDonald House and local food banks. These actions resonate with clients, especially those who prioritize values-based living and investing.

Advisors who mirror their clients’ commitment to giving back not only earn loyalty, but foster alignment that deepens the advisor-client bond. For example, one advisor takes this a step further with a patented methodology to align investment choices with client values, making ESG and impact investing more tangible and effective.

CUSTOMIZATION AND INCLUSIVITY: TREATING EACH CLIENT LIKE A PRIORITY

In a sector often focused on high-net-worth individuals, some advisors are breaking the mould by providing multi-family-of ce-level service to clients who wouldn’t traditionally qualify. Others are especially adept at serving niche needs, such as business owners, with succession planning and tax optimization tools.

Another 5-Star advisor was spotlighted for their commitment to home visits, family-focused strategies, and pre-emptive planning, as life events speak to a bespoke level of care that many rms overlook. This shows clients reject the one-size- ts-all approach in favor of human- rst nancial planning.

Empowerment through true independence

Scott Van

Den Berg

–Century Management Financial Advisors

With over three decades of experience, Scott Van Den Berg has built his practice around a core principle that independence is a powerful advantage that drives better client outcomes.

For the 5-Star Advisor, operating independently is about more than autonomy. He says, “It gives me the freedom to operate without con icts – no proprietary products to push, no quotas to hit – just the ability to focus entirely on what’s in each client’s best interest.”

In turn, independence allows Van Den Berg to choose the tools, software, and research that help deliver those results.

“Whether it’s building customized portfolios, modeling retirement scenarios, or stress-testing nancial plans, I’m not locked into a one-size- tsall platform,” says the Austin, TX-based advisor.

“I can use what I believe works best – what gives clients the clearest picture and the most thoughtful path forward.”

Van Den Berg has noticed a growing awareness among prospective clients around this point. Increasingly, over the last few years, they are asking questions about whether he is a duciary, if he operates independently, and whether his practice is fee-only. This shift, he believes, signals a broader demand for transparency and client-focused guidance. “People want to know who’s really sitting on their side of the table,” he says.

As many of Van Den Berg’s clients approach or enter retirement, their priorities naturally evolve – focusing on tax-ef cient income, asset protection, and legacy planning. But in recent years, he has also seen rising anxiety about market volatility, in ation, and potential tax changes. His independent status allows him to pivot and respond to these concerns without delay or interference.

Ultimately, he views his role not just as an advisor. “People are looking for more than just nancial advice – they’re looking for a trusted partner,” he says.

THE INTANGIBLE EDGE: HEART, PASSION, AND PURPOSE

Ultimately, what separates a good advisor from a great one isn’t credentials – it’s character.

Advisors who lead with purpose, curiosity, and a genuine desire to help often leave the most lasting impressions. Clients told IN about their advisors’ emotional intelligence, which builds lifelong loyalty.

Advisors who show up with heart – who anticipate needs, nurture relationships, and strive for constant growth – are the ones clients trust and remain with.

METHODOLOGY

InvestmentNews’ 5-Star Independent Advisors celebrate the nation’s leading nancial advisors, as chosen by their clients. This award seeks to answer a single, crucial question: Who are the best advisors in the US when it comes to prioritizing their clients’ interests?

Drawing from a diverse pool of nancial professionals, this recognition highlights outstanding examples of passion, dedication, and commitment. Readers were invited to nominate advisors who had delivered exceptional support, evaluated against these ve key criteria: communication, portfolio performance, investment knowledge, client trust, and customer service. Unlike awards based on AUM, the 5-Star Independent Advisors are honored for the exceptional quality of service they provide to their clients.

“At the end of the day, being independent means I answer to my clients, not a parent company”

SCOTT VAN DEN BERG, CENTURY MANAGEMENT FINANCIAL ADVISORS

“We’re not doing anything that’s cookie cutter”

KIRK BADII, BADII GROUP PRIVATE WEALTH MANAGEMENT

his clients know he will answer.

Kirk Badii –Badii Group Private Wealth Management

Kirk Badii grounds his approach in trust, proactivity, and personalization rooted in the freedom and exibility that come with being an independent advisor.

“There’s no con ict of interest. We’re not having to sell any speci c rm products. We’re focused on solutions rather than selling products, and that’s the biggest difference,” he says.

Specializing in working with business owners looking to sell, Badii brings seasoned experience and a clear, client- rst philosophy.

Badii, based in Southlake, TX, is an advocate of ongoing, responsive communication. Whether it’s a brief check-in, a video call, or an in-person meeting,

“You’d be surprised how many people don’t pick up the phone anymore,” he adds. “Our clients like the fact that we are always reachable.”

In addition, he believes that successful nancial advice is not just about numbers – it’s about helping clients maintain their quality of life.

“We do a really good job making sure they’re able to sleep at night and not have to worry about these things, and they can spend their personal time with their families and doing the things they love.”

With all the volatility over the past year, Badii has taken action to assure clients by going over their time horizons, risk tolerances, and liquidity needs. This consistency and diligence are illustrated by the rm winning local and national awards over the last four years.

“We take a proactive, hands-on approach,” adds Badii. “We always want to make sure that we and our clients are con dent and comfortable with the way the portfolios have been positioned.”

Scott Van Den Berg, CFP®, ChFC®, CEPA®, AIF®

Century Management Financial Advisors

Phone: 512 636 2026

Email: svandenberg@centman.com

Website: centman.com

David Mammina

Coastline Wealth Management

Phone: 631 473 1188

Email: dmammina@coastlinewealth.com

Website: coastlinewealth.com

Kirk Badii

Badii Group Private Wealth Management

Phone: (310) 846 8362

Email: kirk@badiigroup.com

Website: badiigroup.com

Adam S. Goldstein

Envisage Wealth Ameriprise

Adria Meehan Siewert Wealth Enhancement Group

Allison Berger Financial Symmetry Inc.

“I care about my clients. I wear my heart on my sleeve and make sure that I’m doing what’s right by them, not because of some regulation, but because it’s the right thing to do”

DAVID MAMMINA, COASTLINE WEALTH MANAGEMENT

5-STAR INDEPENDENT ADVISORS 2025

Andrew Altfest Altfest Personal Wealth Management

Becca Mathis

Jeter Hrubala Wealth Strategies Raymond James Financial Services

Bryan E. Mazza Mazza Financial Group Inc. Independent Financial Group

Christian Poppe Grey Fox Wealth Advisors

Daniel Wilson Skyeburst Wealth Management Ameriprise Financial Services LLC

David K. Mabie Chicago Capital

David Kudla Mainstay Capital Management

Dustin Blodgett Insight Capital Management

David Mammina –Coastline Wealth Management

Being able to access products and services without any constraints is of high value to David Mammina

“I’m not beholden to any company to tell me what I should be using for a client, which I don’t think is always going to be in the best interest of what the client needs,” he says. “No one service or investment is going to work for every single client. Being independent allows me to use everything that’s out there.”

Over the last 12 to 18 months, the Port Jefferson, NY-based advisor has noticed clients looking for alternative investments, such as private credit and equity, along with other ways to diversify their portfolios. He has responded by using his independence to their bene t.

“Anybody can sell a stock on Google, but do you have the availability to go to a certain alternative manager, private credit rm, or private equity rm, and have access to their investments?,” Mammina adds. “That’s what helps me ll this void that these clients have had over the past year or two.”

Coastline Wealth Management operates somewhat of a “brain trust” where its collection of advisors appreciate their own individual knowledge gaps but come together to nd solutions.

This is compounded by clients generally becoming more knowledgeable about investments.

Mammina says, “I’m not always going to be all and know everything. So, the fact that we have this team of advisors that I can count on for some really good ideas is what helps me shine compared to competitors.”

Building trust is paramount for the 5-Star Advisor, and he focuses on creating relationships that last. This enables clients to be con dent that his advice always has their best interests in mind.

“I say to them, ‘This is what I feel you should do from an investment standpoint’ – it’s never a sales pitch.”

“We wanted a culture that felt like family, a partnership built for the future. We found that in IFG.”

Gautam Muthusamy Arcadia Capital Raymond James

Howard B. Lashner Lashner Financial Group Primerica

Huong Tran Envisage Wealth Ameriprise

Jaimee Carnes ElderAdo Financial

Jason Britton Re ection Asset Management

Jason Klein OsborneKlein Ameriprise

Jason Van Duyn, CFP, ChFC, CLU, MBA Aquest Wealth Strategies LPL Financial

Jeffery Chaddock Envisage Wealth Ameriprise

John Troncoso The Troncoso Group Jaffe Tilchin Wealth Management

Jonathan (Jon) Robertson Abacus Planning Group Inc.

Jordan Jobe NextGen Advisors Raymond James Financial Services

Julian Anthony Benitez II JNJ Wealth Management Group LLC

Justin Mitchell Adams Brown Wealth Consultants

Ken Schapiro Condor Capital Wealth Management

Lauren Stansell Yeske Buie

Lawrence Glazer May ower Advisors

Lili Vasileff Wealth Protection Management

5-STAR INDEPENDENT ADVISORS 2025

Linda Kuehn McCormack Financial Planning Inc.

Mason G. Couvillon

Dardis Couvillon & Associates LPL Financial

Michael Shanahan High Bluff Private Wealth

Mike Amash Westmount Partners

Nick Lalonde Third Act Wealth Management LLC LPL Financial

Patrick Fruzzetti Rose Advisors, A Hightower Company

Peter Krull Earth Equity Advisors

Philip G. Palumbo, CFP Palumbo Wealth Management

Randy Carver Carver Financial Services

Robert N. Auclair Balanced Wealth Management

Ryan Gomendi Strategic Retirement Plans

Sean Cauvel Westmount Partners

Shaun Osborne OsborneKlein Ameriprise

Tarah Sikkenga Wealth Enhancement Group

Ted Lauzen

Grey Fox Wealth Advisors

Vanessa N. Martinez Expressive Wealth

Vijay Khetarpal Integrity Financial Group Osaic Wealth

William G. Ryan

William Ryan Company LLC LPL Financial

Yusuf Abugideiri Yeske Buie

GOING FOR GROWTH

Jamie Price, the Osaic CEO, recounts his rm’s meteoric rise and looks ahead to further expansion in a rapidly changing industry

BY GREGG GREENBERG

WHAT A difference a decade makes.

When Osaic transitioned out of AIG in 2016, the wealth manager serviced approximately $150 billion in assets under administration (AUA) across four separate brands, with just 27 percent of those assets being fee-based. Fast forward to today and Osaic serves approximately $700 billion in AUA under a single uni ed brand, with fee-based assets approaching 50 percent – and rapidly growing.

That explosive expansion in the past 10 years has vaulted Osaic into one of the nation’s largest wealth management platforms, complete with a multi-af liation model designed to support independent, entrepreneurial advisors.

Success also came with some challenges that CEO Jamie Price, who has led the company nearly the entire way, continues to navigate – most notably, a massive consolidation effort over the past 18 months with the goal of unifying nine independent entities.

“We knew it was the right strategy for our advisors − creating a uni ed platform that gives them the resources, support, and exibility they

C-Suite

JAMIE PRICE AT A GLANCE

Education

Bachelor of science degree, nance and economics, Charles H. Lundquist College of Business, University of Oregon

Designations

Securities Institute Association’s Certi cate, The Wharton School; Series 7, 24, and 63 FINRA securities licenses

Entrepreneurial experience

Before leading Osaic, Jamie invested in and helped lead the startup 1-800-DOCTORS, a concierge service that connects patients with medical professionals

Boards

Securities, Investment, and Financial Markets Association (SIFMA); 2024 chair of Financial Services Institute (FSI)

need to grow faster and support their clients better because they are partnering with us instead of other choices they may have in the marketplace,” says Price. “And frankly,” he adds, “if we’re not helping our advisors to grow, we’re not doing our job.”

WHEN JAMIE PRICE TALKS, PEOPLE LISTEN

Price’s personal wealth management history spans all the way back to EF Hutton, which he contends was truly ahead of its time in the fee-based space, offering nancial planning services as early as 1983. During his time there, Price worked directly as an advisor, with more than half of his business in managed accounts. As a result, it never felt to him like a traditional, commission-crazed brokerage.

Later, when he moved to UBS for a spell, Price recounts the focus shifting toward high-net-worth and ultra-high-net-worth clients, which, once again, foreshadowed the industry’s overall direction.

As to where wealth management is headed next, Price believes it’s all coming together.

“Looking forward, we know that the wealth business is converging. The transformation is already underway in the broker-dealer space. I believe the next convergence will be in the RIA space, and ultimately scaled independent wealth management rms will emerge,” Price says.

One of the opportunities Price sees in the RIA marketplace is exibility – especially when it comes to custodial relationships. He considers Osaic’s decision not to be self-clearing a strategic advantage, giving the rm the freedom to work with multiple custodians.

“We bring the legacy, scale, and in uence that custodians value in the RIA market. It’s another reason I believe Osaic is positioned to emerge as a

“Frankly, if we’re not helping our advisors to grow, we’re not doing our job”

leading independent holistic wealth manager across all af liation models and institutions, including banks and credit unions – measured not by total assets or advisor count but by per-advisor AUM and overall productivity,” Price says, further emphasizing that Osaic is “all-in” on the RIA business.

JAMIE NAMES HIS PRICE

You can’t spell “consolidate” without O-S-A-I-C (go ahead and try it) and, yes, Osaic has been a prime participant in the private equity−led M&A frenzy currently transforming the wealth

management space. And Osaic, which was known as Advisor Group until a rebranding in 2023, has its own private-equity backer in corporate parent Reverence Capital Partners.

In fact, it was the pedigree and nancial power of Reverence that enabled Osaic to complete its landmark acquisition of Lincoln Financial’s $115 billion wealth management division, Lincoln Wealth, in 2023, along with roughly 1,400 advisors.

But while Osaic is clearly on the lookout for deals, Price maintains that he never builds acquisitions into his ve-year plans. The M&A

process is selective and must make “strategic sense,” in his opinion.

“While we’ve seen a signi cant number of opportunities during my time here, and our M&A reputation and expertise has earned us a seat at the table for every major deal within the industry, we’ve only chosen to engage with a select few,” Price says. “When we do engage, we typically secure opportunities because of a good cultural t, added capabilities, and price.”

And if – and when – Osaic does come into competition with a rival rm over a potential acquisition, Price feels his company’s “ exibility” will win the day, even when up against a competitor with a large advisor headcount or custodial capabilities.

When it comes to exibility, Price points out that Osaic advisors can choose from 1,099 dual registrant, independent RIA, RIA/fee-only, or W-2 af liation models, and can adopt structures

“I believe the next convergence will be in the RIA space, and ultimately scaled independent wealth management firms will emerge”

such as solo practices, ensembles/teams, OSJs, or branch employee roles. Furthermore, the company supports multiple custodians, including NFS, Pershing, Schwab, and Fidelity IWS, and serves all business models – independent, RIA, institutions, and W-2 advisors.

In 2024, Osaic launched an enhanced W-2 platform to drive productivity and ef ciency. It offers advisorclient experiences, enterprise-level data capabilities, and plug-and-play innovation. It also leverages AI and automation to reduce administrative burdens and speed up processing times.

“Our commitment to creating and fostering communities for our advisors is truly unique. We create countless opportunities for them to share best practices and learn from each other through national and regional events, councils, and webinars,” Price says.

A CURE FOR ENTREPRENEURIAL ADVISORS

Prior to taking the helm at Osaic, Price took a short career detour away from the nancial

OSAIC AT A GLANCE

AUM

$686B as of 3/31/25

Home base Scottsdale, AZ

Locations

All 50 states plus Puerto Rico and Washington, DC

Advisors 10,414

Employees ~2,400

advisory business to help build the 1-800-Doctors startup. And while he’s now back dealing in dollars instead of doctors, Price views Osaic as having a strong entrepreneurial spirit, despite its towering size and scale.

Actually, upon re ection, he contends he never imagined he’d be able to scale the business to such an extent in barely a decade.

“It’s incredibly exciting to see the caliber of talent we’re now able to attract and retain. Our team is adaptive, collaborative, and aligned around where we’re going. That makes the work truly energizing,” Price says.

On the ip side, he believes the hardest part of steering this burgeoning ship is setting the right priorities for the future and remaining modest, come what may.

“With so much opportunity, the challenge is staying focused on what matters most while remaining agile and responsive to market dynamics,” Price says. “I also believe we need to remain humble and never believe we have it all gured out, particularly when you have had the success we have had.”

NewsAnalysis

FINRA AND ADVISORS’ OTHER WORK

The Financial Industry Regulatory Authority, which regulates the brokerage industry, once again takes a stab at updating rules for independent brokers with other businesses and jobs

BY BRUCE KELLY

The Financial Industry Regulatory Authority (FINRA) is once again proposing changes to how broker-dealers supervise some of the work of advisors registered with independent broker-dealers, touching nerves across the industry.

The proposed rule changes, published in March, harken back to the self-regulator’s efforts in 2018 to streamline rules guiding work not directly related to a nancial advisor’s work at a brokerdealer. Advisors have jobs outside the of ce as wide-ranging as tending bar on the weekends and driving an Uber after the market closes.

But it is advisors’ investment-related work as registered investment advisors that continues to push FINRA to revamp its rules for broker-dealers.

The focus of the rule, known as Outside Business Activities, or OBA, overwhelmingly affects nancial advisors who work as independent contractors and are registered to sell securities at giant rms such as LPL Financial and Osaic.

Independent nancial advisors at rms like that often use an outside, third-party custodian such as Charles Schwab or Fidelity to hold client assets, creating the need for some kind of oversight by the brokerage rm to supervise the advisor.

Wirehouses and banks like Merrill Lynch work with nancial advisors who are fulltime employees and typically don’t have other investment-linked responsibilities or duties with clients. As more nancial advisors have moved in the last 30 years from wirehouses or banks to independent broker-dealers or RIAs, the need for rms to oversee their outside work only increases. And in 2025, FINRA is in a pickle with its proposal.

TOO MUCH, OR NOT ENOUGH?

On one hand, the industry perceives the selfregulator, which oversees 3,298 broker-dealers, as overreaching in its proposal. On the other,

industry watchdogs including state regulators are wary of FINRA retreating from its oversight of investment-related businesses, which independent nancial advisors often operate, from legal advice to doing a client’s taxes.

“While FINRA’s approach to reduce the ‘white noise’ created by supervising benign outside business activities is welcomed, LPL is concerned that the proposal maintains the unnecessary, outdated requirement to supervise unaf liated investment advisor activities,” as the Securities and Exchange Commission (SEC) and the states already regulate RIAs, wrote Althea Brown, LPL Financial’s chief legal of cer, in a comment letter dated May 13.

“I urge FINRA to reconsider the proposed rule in its current form”

WILLIAM GALVIN, SECRETARY, COMMONWEALTH OF MASSACHUSETTS

A senior state securities regulator couldn’t disagree more.

“I urge FINRA to reconsider the proposed rule in its current form because it would establish reduced standards and oversight, to the detriment of investors and savers,” wrote Secretary of the Commonwealth of Massachusetts William Galvin in a comment letter also dated May 13.

“The OBA rules, which have been around since the 1990s, are designed to protect brokerdealers from their advisor doing stuff like selling insurance or running a mortgage broker that could create liability for those rms,” says one

senior industry executive who spoke privately to InvestmentNews about the matter. “The controversial part in 2018 and now is the rm’s supervision of any outside investment-related activities.”

NEW RULE PROPOSAL

FINRA’s rule proposal is the result of its review of industry rules governing outside business activities and private securities transactions, with the proposed rule replacing two old ones.

FINRA’s proposal focuses on outside investment-related activities that may pose a greater risk to the investing public and members, according to the regulator.

“This will both increase investor protection and decrease burdens on members by eliminating the reporting and assessment of low-risk activities that create white noise, such as refereeing sports games, driving for a car service, bartending on weekends,” FINRA noted in its March notice about the proposed rule change.

“This focus will allow members to dedicate resources to activities presenting higher risk, particularly the risk that customers or the public will view the activities as part of the member’s business, including selling crypto assets, xed annuities, commodities, or private placements away from the member,” according to FINRA.

Adding to the industry ruckus over FINRA’s proposal, one of the most well-known nancial advisors, Ric Edelman, in May chastised the self-regulator in a column published on ThinkAdvisor.com, calling the outside business activities “absurd.”

“Just when everybody thought crypto had entered the Age of Enlightenment, thanks to the strong support it’s been given by the Trump administration, along comes FINRA with a proposed rule that, for FINRA-licensed reps and those dually licensed, would push crypto back

At the end of 2023, FINRA reported:

“Along comes FINRA with a proposed rule that would push crypto back into the dark ages of the Biden and Gensler regime”

RIC EDELMAN, DACFP

into the dark ages of the Biden and Gensler regime,” wrote Edelman, a proponent of digital assets. “And the rule’s impact would go far beyond cryptocurrency.”

A few days later, FINRA took the odd step of making a statement denying it would limit advisors from owning Bitcoin.

“Some statements claim that the proposal would require associated persons to report to and receive approval from their broker-dealers to personally

purchase Bitcoin, a beach house, insurance, or even make a deposit or withdrawal at a bank,” according to FINRA’s note. “This claim is false. The proposal explains that these types of personal activities are, in fact, excluded from the rule.”

Further action on the proposed rule is pending.

“The way the OBA proposal has played out for FINRA and independent BDs is like the line from the Grateful Dead song: ‘What a long, strange trip it’s been,’” the senior industry executive says.

435 individuals barred or suspended

628,392 registered brokers KEY FACTS ABOUT FINRA

3,298 broker-dealers

OLD-SCHOOL REFERRALS STILL RULE

As technology evolves, nancial advisors get more creative and sophisticated with marketing efforts, but traditional methods remain effective

BY JEFF BENJAMIN

Despite fast-evolving digital technology, online marketing opportunities, and the potential of social media in uencers, the majority of nancial advisors still rely on traditional referrals to attract new clients.

Even though it goes against the grain of what many industry consultants suggest as the best way to expand an advisory rm’s client base, Cerulli Associates nds that a “reliance on referrals continues to expand.”

In his latest research, Stephen Caruso, associate director in the wealth management practice at Cerulli, found that nearly two-thirds of new client acquisitions are coming via referrals.

Caruso says 55 percent of new advisory rm clients are the result of referrals from the friends and family of existing clients. An additional 14 percent of new clients are referred by so-called centers of in uence, including lawyers and tax specialists.

“The remaining one-third of new business is coming from a variety of things, including inbound inquiries, digital marketing, and clients leaving other advisors,” he says.

In some ways, this ies in the face of the popular opinion that digital marketing and various forms of arti cial intelligence are sweeping across the wealth management industry and leveling the playing eld for smaller advisory rms looking to compete with deep-pocketed Wall Street rms and mega RIAs.

“Digital marketing is growing, but we’re not seeing it crack 10 percent yet in terms of sources of new clients,” Caruso says. “We also haven’t seen social media have a strong impact on recruiting clients, despite the more relaxed marketing rules from the SEC.”

“Client segmentation is essential. We’re seeing success when rms tailor their service models based on client net worth, life stage, and complexity”

GREG CORNICK, OSAIC

Jared Chase, a nancial advisor who runs the referral program at Signature Estate & Investment Advisors, says the advisory rm is bene ting from being part of the referral programs at Fidelity Investments and Charles Schwab Corp.

But, he adds, the client relationship always requires a solid in-person connection.

“Nothing replaces being face to face with clients,” Chase says. “We have a digital marketing strategy, we do webinars and educational events, and we publish white papers, but the vast majority are coming from referral programs and normal marketing efforts.”

Rishi Bharathan is chief executive of Wiser Advisor, a platform connecting consumers with nancial advisors, and he is using customer reviews to boost referrals.

“When it comes to getting new clients, number one is still the old-school method of referrals,” he says. “Ultimately, consumers tend to believe individuals over brands, and 68 percent of consumers start their

“A lot of advisors will put out their own content, showing their specializations and using social media to engage the audience,” he says. “The rms that will win in the future will have multichannel marketing, infrastructure, and the data to measure success.”

That advice is right in line with Allworth Financial’s targeted efforts to recruit new clients.

“You need to have the infrastructure in place to handle leads to help advisors acquire new clients,” says John Bunch, chief executive of Allworth.

In some respects, the Allworth model might be described as the opposite of a referral strategy.

Allworth, which has been in the nancial services industry for 34 years and in the RIA space since 2012, started marketing through its own radio shows, which led to podcasts, which evolved into a “modern, digital, niche-focused approach,” Bunch says.

“You are online searching for an advisor, you ll out a lead form, those leads go to a centralized team within Allworth, and we try to have the rst contact with that person within two minutes,” he explained. “The longer it takes to set up that rst appointment, the harder it is to convert those leads into clients.”

As Bunch sees it, the best marketing strategy has a narrow focus on a speci c type of client or niche category. But all market strategies, he believes, need to leverage four primary channels, including social media, paid media advertising, traditional digital leads, and webinars, which he describes as the modern-day seminar.

“At the end of the day, this is a math equation,” he says. “How much time and effort are you putting in, and what is the payback?”

Greg Cornick, executive vice president of advice and wealth management at Osaic, also subscribes to the idea that a “niche specialization” is key to attracting new clients.

“Client segmentation is essential,” he says. “‘We’re seeing success when rms tailor their service models based on client net worth, life stage, and complexity.”

At Mercer Advisors, client recruiting success has been the result of having people dedicated to bringing on new business.

“Many years ago, we decided to separate sales

ALISA MAUTE, MERCER ADVISORS

and service so that our wealth advisors can focus exclusively on serving clients, not nding the next one,” says Alisa Maute, Mercer’s head of client development.

“Our client development professionals work to identify prospective clients and thoughtfully pair

them with an advisor best suited to solve for the complexities of their nancial lives,” she adds. “These are important roles in our organization as different families have different needs, and they are more likely to be happier with an advisor that understands their unique context.”

Source: 2024 Natixis Global Survey of Financial Professionals

NewsAnalysis

MINORITY CAPITAL COMES WITH CAUTION

‘We received a number of calls every month from founders who have a minority investor where the trip doesn’t match the brochure,’ says Hue Partners’ Emily Blue

BY ANDREW COHEN

Minority stake transactions mark a smaller portion of total M&A activity among RIAs in 2025 compared to recent previous years, according to new insights from DeVoe & Company. Only 11 minority stake transactions have occurred year to date out of 122 total deals so far.

“Minority transactions surged in 2020 but have since slowed as a percentage of total deals, declining from 17 percent of transactions to 9 percent today,” says David DeVoe, founder of DeVoe & Company, a consulting rm that serves the wealth management industry. “Firms seeking minority capital are typically either solving for liquidity issues related to succession or seeking to fund organic growth.”

“Many rms previously favoring minority stakes have shifted toward full acquisitions,” DeVoe says, with the rm’s latest data including deals through May 27. One example provided by DeVoe was Merchant’s majority acquisition of Summit Financial in Q1 2025 after it had been a minority owner in Summit since 2019. The proportional decline in minority transactions comes after private equity rms fueled 75 total M&A deals for RIAs in Q1 2025, the most active rst quarter ever recorded by DeVoe & Company.

‘THE TRIP DOESN’T MATCH THE BROCHURE’ Emily Blue, co-founder of RIA M&A advisory rm Hue Partners, says that while advisors look to sell minority stakes in their RIAs to lessen the nancial burden as their business grows, advisors are often disappointed in the lack of operational support that comes from minority investors.

“We received a number of calls every month from founders who have a minority investor where the trip doesn’t match the brochure − what they thought they were going to get isn’t what they received,” Blue tells InvestmentNews. “They got the check, but they’re not partnering in the way that they would have liked to or thought that it was going to be. It’s not exclusive to any one particular minority interest investor; we’ve seen it across multiple and so it’s more of a universal [challenge] at large.”

Blue founded Hue Partners in 2024 after spending four years as a dealmaker for the large RIAs Mariner Wealth Advisors and The Caprock Group. Some of the most active investors taking minority stakes in RIAs include Merchant, Emigrant Partners, Hightower,

Constellation Wealth Capital, and Wealth Partners Capital Group. Minority stakes typically involve around 20 percent equity sales for rms managing over $1 billion in AUM, according to DeVoe & Company.

THE ADVISOR IS THE INVESTMENT

“The best advice that I would give somebody that’s contemplating taking a stage of receiving an investment is to really get speci c on what your goals are, what are you looking to solve,” Blue says. “Because if it’s truly just taking chips off the table and that’s it, then that might be a great route. But if you’re looking for operational support, thought leadership, inorganic growth support, and future capital, that’s not always going to be the case.”

Minority stakes often allow founders to maintain control of their RIAs, but advisors should understand that selling minority stakes guarantees more future investment transactions.

“It’s one thing to be an advisor looking at

rm Charlesbank Capital Partners. Rise was founded by Joe Duran, who sold his RIA United Capital to Goldman Sachs for $750 million in 2019 before Goldman ipped United Capital to Creative Planning.

“There’s very few minority investors that have anyone there other than traditional nancial investors − that’s absolutely true,” Duran says. “It was my experience when I was building United Capital that the private equity investors I could get brought very little expertise to anything other than nancial structure. They’re very helpful in raising debts and

“Minority transactions surged in 2020 but have since slowed as a percentage of total deals, declining from 17 percent of transactions to 9 percent today”

DAVID DEVOE, DEVOE & COMPANY

investments in a portfolio, but very few advisors are used to being the investment and operating like an investment,” Blue says. “They’re used to looking at investments every day in their clients’ portfolios and assessing if a business or investment is good or bad. But they’re not used to being the investment themselves and having their performance assessed and being held to those growth benchmarks or return benchmarks.”

Among Blue’s teammates at her sell-side rm Hue Partners is Cooper Bricks, who was hired in May from his previous role as VP of corporate development at Rise Growth Partners, an RIA minority investor that is backed by a $250 million stake from private equity

thinking about nancial models, but in the business of the brand and building the business, they were not helpful at all.”

INVEST FOR GROWTH

Rise’s leadership team spans several national RIA industry veterans, including The Colony Group’s former CMO, Jennifer Geoghegan, former Schwab technology director Jack Morgan, and Schwab’s former EVP of investor services, Terri Kallsen. Rise has thus far made two minority investments in RIAs Bleakley Financial Group and Grimes & Company. Bleakley had nearly $10 billion in assets, $70 to $80 million in annual revenue, 130 employees, and

MINORITY STAKE TRANSACTIONS

“It was my experience when I was building United Capital that the private equity investors I could get brought very little expertise to anything other than nancial structure”

JOE DURAN, RISE GROWTH PARTNERS

40 advisors when the rm received investment from Rise in August 2024, according to Duran. Rise built a ve-year plan for Bleakley before signing any investment deal, which included a roadmap for national expansion and converting their 1099 advisors to W2.

“In just nine months, [Bleakley’s] grown to almost $12 billion in assets, over $100 million in revenue,” Duran says. “Over 80 percent of their advisors are now W2 employees; over 80 percent of their revenue is now W2. Their EBITDA has exponentially grown, and they’ve completed two acquisitions and have more coming.

“But here’s the big difference between us and a majority investment. They have made all the decisions. We have a minority stake investment in them, and they get all of our expertise as part of the investment,” Duran says.

Source: DeVoe & Company

Retirement investing is getting personal

With a wider menu of managed accounts coming in the 401(k) space, advisors must have a process to determine when more personalized service is a good t for participants

You’re shopping for a suit for your wedding. You have a speci c t and color scheme in mind, so you’d prefer something bespoke. But you live in an isolated area. You can’t shop around for consults – there’s only one tailor in town. You could buy a readyto-wear suit online and save some money, but it might not meet the vision. Should you get the bespoke suit and pay monopoly prices or roll the dice with the off-the-rack options?

That’s a bit like the process of evaluating 401(k) managed account services today. When your record-keeper offers only one or two providers, benchmarking these services is dif cult. While it’s human nature to favor the custom product, advisors should weigh whether the personalized approach to retirement investing is always worth the added cost.

Even with such limited options, advisors have the duciary duty to evaluate managed account services with the same due diligence they apply to other plan investments and service providers. Managed account services may not be a t for all types of participants. Simply accepting the record-keeper’s default option can expose plans to risk.

The strong traction for managed account services leads me to believe advisors will face a much wider selection in the next ve to 10 years. Establishing a clear benchmarking process now can help them prepare for a future with more options and determine whether managed account services serve participants’ best interests today.

The rst step in the evaluation process is understanding what types of clients can see the most value from managed account services.

WHICH CLIENTS CAN BENEFIT FROM MANAGED ACCOUNTS?

1. Participants in their 40s, 50s, and 60s

Financial circumstances like debt levels, homeownership status, and family obligations become more varied as participants age. Managed accounts can help older participants’ portfolios re ect their full nancial picture.

2. High earners with complex nancial situations

Managed accounts can incorporate external assets and offer tax-aware investment strategies for participants with signi cant assets outside their 401(k)s.

3. Plans with signi cant participant misallocation

If a large percentage of participants are over- or under-allocated in equities relative to their age and risk

tolerance, personalized retirement plans may provide a better investment vehicle, with features that go beyond investment allocation. Many managed accounts offer robo-advisors to guide participants to increase their contribution rates and optimize Social Security claiming strategies.

PROCESS

FOR BENCHMARKING MANAGED ACCOUNT SERVICES

That brings us to the second step in the evaluation process: reviewing participant allocations to assess

be frequently ne-tuned with a variety of data points, like contribution rate, marital status, and assets outside the retirement plan.

Now it’s time for cost-bene t analysis. Some managed account fees can run as high as 40–65 basis points or as low as single-digit basis points on top of the weighted investment expenses of the portfolio. Depending on the needs and priorities of the plan, it may be worth changing record-keepers to access a better provider. If a switch isn’t on the table now, it may still be worth comparing provider costs and services for when you’re ready to make a move.

Finally, be sure to document the process for compliance. Maintain records of your decision-making rationale, including participant value assessments, cost comparisons, and personalization metrics.

MORE COMPETITION, MORE RESPONSIBILITY

Eventually, managed account services will likely become as commonplace as target-date funds. Advisors can expect to have more options as open architecture becomes standard and record-keepers integrate multiple managed account providers. Some are already incorporating broader nancial planning features – for example, offering advice on student loans, Health Savings Accounts (HSAs), and debt repayment.

Increased competition puts greater responsibility on nancial advisors to select the right provider. When more choices become available, advisors who already have a clear benchmarking process should be well positioned to make strong recommendations, maximize participant outcomes, and con dently ful ll their duciary duties.

As managed account services and

“While it’s human nature to favor the custom product, advisors should weigh whether the personalized approach to retirement investing is always worth the added cost”

whether the value of personalization justi es the extra fees. If a signi cant portion of participants are misallocated, consider a Quali ed Default Investment Alternative (QDIA) re-enrollment.

Next, de ne what level of personalization the plan needs given the participant demographics. Model portfolios or target-date funds may offer sufcient customization for younger and fee-sensitive participants. But if they need a more advanced framework for optimizing their next dollar, managed account services can incorporate and

the technology behind them continue to evolve, the key question won’t be, “Do participants need a managed account?” but, rather, “Which provider offers the best value?” In other words, if you want a bespoke suit, you’ll likely have plenty of tailors to choose from.

Ronnie Cox is the investment director for Human Interest Advisors (HIA), an SEC-registered investment advisor that helps 401(k) plan customers provide their employees with diversi ed and affordable investment options.

‘IT FELT LIKE THE OSCARS FOR FINANCIAL ADVISORS’

Ahead of this year’s ceremony, our 2024 winners recall the buzz and excitement from the inaugural event

BY ANDREW COHEN

Business was booming at the 2024 InvestmentNews Awards in June, a month in which both the Nasdaq and S&P 500 hit new all-time highs. Howard Morin, whose Helium Advisors won RIA Team of the Year for the Under 10 Advisors category, recalls the “surreal” moment of hearing his rm’s name called at 583 Park Avenue in Manhattan.

“When we nally heard our name called, we were just blown away,” says Morin. “I thanked Nvidia for everyone’s mortgage payments and college tuition payments at the time last year. That made everyone chuckle a little bit.”

Morin was joined at the event by Helium’s COO, Stephanie Ridley, and co-founder Gary Russell, who was tasked with bringing the “big-ass trophy” through airport security back home to Seattle. Morin stayed a few extra days in New York to travel north to Lake Placid for some hiking with his son.

The trio of Helium executives was seated at the awards ceremony at a table alongside Dimensional Fund Advisors, who engaged in some friendly wager chatter before the award announcement.

“We’re all making bets, like, ‘hey, if we win this, we’re going to send $100 million dollars.’ It was a good camaraderie. When we nally heard our name, I jumped up with a st pump and muttered some profanity-laced terms, and everyone was really jacked,” Morin recalls. “It was very buzzy; it reminded me of looking at the ESPYs. I think it was a complete home run, whether we won or not; it was a great experience.”

In the year since Helium’s win, the rm launched its own private equity division and has grown to roughly $308 million in assets under management, according to the Washington-based RIA’s latest

form ADV from March 2025.

“We took in a lot of money in Q1. I don’t remember the exact gure, but I think we [added] half of last year just in the last quarter,” Morin says, attributing growth to referrals and hosting webinars. “A lot of it was a result of us publishing more content.”

Content is also key for Julie Penwell, assistant vice president at Wealthspire Advisors, who won last year’s NextGen Advisor of the Year category. She recalls the humor of videos shared at the awards ceremony, which parodied scenes from Hollywood lms such as Men in Black, Star Wars, and Top Gun

“I think it was a complete home run; whether we won or not, it was a great experience”

Howard Morin, Helium Advisors

“It kind of felt like a dream, and it felt a little bit like the Oscars for nancial advisors,” says Penwell. “A lot of the sponsors and the nominees made promotional videos. I thought it just brought this really fun, bright levity to the event, which I think in nance, sometimes it’s important that we smile and we laugh a bit.”

Penwell, who hails from Seattle, launched an Instagram page last year to create nancial literacy

videos that target young professionals. Her videos cover topics such as building emergency funds, managing a credit card, discussing nances with your friends, and navigating how to combine nances with your partner.

“People that are watching my content and content like that − those are the clients of the future,” says Penwell. “We see today that people are starting to build trust online. I’m developing a library of content that’s just nancial education that’s really accessible. I think as an industry, there’s a lot of folks that are thinking about that in the context of next-gen clients.”

The fellow nominees for NextGen Advisor of the Year keep in touch with Penwell today. “We were in a room together one day – we’re still connected, we’re still talking. And I think it’s really exciting to be part of this cohort of people emerging in our industry, doing interesting things.”

Jim Wessels, who won last year’s Advisor of the Year for the Midwest region, also appreciates how the in-person awards gathering fuels personal and digital connections. Wessels’ Iowa-based Vision Financial Group was part of three Midwest RIAs that merged in January to form the Des Moines-based Financial Integrators.

“One of the things that I thought came about from the event was, I was surprised that from accumulating contacts on LinkedIn for over 20 years, there were people I hadn’t talked to in over 20 years that reached out just from recognizing [our award], which tells you that InvestmentNews gets out there pretty broadly,” says Wessels. “There were a lot of people that I hadn’t talked to in a while that I ended up reconnecting with.”

The 2025 InvestmentNews Awards will be held June 24, 2025, at the Edison Ballroom in New York City.

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FINRA penalizes another broker-dealer for social media miscues

THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) has ned an online brokerage, Open to the Public Investing, $350,000 for its shortcoming in monitoring statements by social media in uencers. These in uencers are also known as “ n uencers” when they focus on nancial activity.

FINRA, which regulates the brokerage industry, has been fo-

cused on rms and their use of social media for several years. And in 2024, the regulator hit another online brokerage rm, M1 Finance, with an $850,000 ne for violations related to its social media in uencer program.

Public Investing’s in uencers’ communications were not fair and balanced and included misleading or unwarranted statements, according to FINRA.

Firms to run new interval fund face big questions

BLACKSTONE, WELLINGTON

Management, and Vanguard Group have led to launch a multi-asset interval fund, called the WVB All Markets Fund, aimed at bringing private markets exposure to a wider base of retail investors. The fund now faces the typical scrutiny of alternative investments that offer investors some exposure to investments that don’t trade daily and cost more than low-priced

exchange-traded funds pegged to stock and bond indices.

According to a ling with the Securities and Exchange Commission (SEC) dated May 7, the WVB Fund will be structured as an interval fund – an investment vehicle that allows limited quarterly redemptions of between 5 percent and one-fourth of the fund’s net asset value. Wellington will act as the fund’s investment advisor.

vices executives conducted by Broadridge.

Among the standout ndings in the report, 72 percent of rms indicated they were making moderate to large investments in gen AI in 2025 – up from 40 percent the previous year.

How ‘gut feelings’ are derailing advisory firms

TOO MANY RIAs are running practices, not businesses − and it’s stalling their growth, derailing succession plans, and sinking long-term value. Libby Greiwe argues that advisory rms built around founder intuition instead of documented systems are destined to plateau.

Without scalable infrastructure, even pro table rms become unsellable. While many advisors focus on portfolios and retention, Greiwe warns the real threat is internal: undocumented work ows, underused tech, and gut-driven decisions. That invisible drag inevitably adds up.

Greiwe, founder of The Ef cient Advisor LLC and a former advisor herself, now helps rms around the world shift from founder-led practices to systemized, sellable businesses. Her message is blunt: if you want to grow or exit, start running your rm like a business − not a passion project.

“One of the rst things is really understanding what processes even exist in the business,” Greiwe explains.

She believes every rm has at least eight core processes − but most have never been deliberately designed,

FINRA puts kibosh on David Lerner

Associates

A RISING share of wealth management rms is putting signi cant resources into generative arti cial intelligence, according to a new global survey of nancial ser-

That investment trend aligns with broader enthusiasm around AI more generally: 86 percent of rms plan to increase spending on arti cial intelligence over the next two years.

DAVID LERNER ASSOCIATES , the long-time purveyor of high-risk, house-managed alternative investments, will not be selling any more proprietary investments for at least two years, according to a recent settlement with FINRA.

This FINRA settlement with David

let alone documented. That lack of structure creates friction. Advisors often build systems for internal ease, not for enhancing the client journey.

“If we’re not actually building a clear process for the client’s experience and then using our process to move them along through the journey, we’re completely missing a huge opportunity,” she says.

And it’s not just about documentation − it’s about intent. Too many rms operate on siloed knowledge instead of institutional systems. Without clearly de ned roles, responsibilities, and replicable work ows, rms stall. Succession becomes a guessing game.

“The practice management that advisors have in place is too advisor oriented. It’s not scalable. It’s too dependent on one or two people,” says Greiwe.

That fragility stems from a deeper issue: advisors staying too comfortable in the advisor seat and failing to embrace the role of CEO. Strategic planning, process design, and operational oversight get sidelined in the daily grind.

Lerner Associates concerned sales of energy limited partnerships; FINRA claimed the rm’s brokers made unsuitable sales recommendations to 200 customers to buy the limited partnerships from 2015 to 2019. Davd Lerner Associates also agreed to pay $1 million in restitution to clients to settle the matter.

After two years, the rm can begin selling such products again if it meets a variety of compliance thresholds mandated in its settlement.

“The practice management that advisors have in place is too advisor oriented. It’s not scalable”

LIBBY GREIWE, THE EFFICIENT ADVISOR LLC

“The biggest thing I see is advisors being so into the advisor role that they forget to step into the role of CEO,” she says. One of Greiwe’s most practical recommendations is deceptively simple: take a “CEO Day” once a quarter. It’s a day off the calendar, fully dedicated to system design, back-end cleanups, and process optimization.

“It’s fully taking time out of the practice … to focus speci cally on process and client experience,” she says.

LPL cuts staff at Atria as it pitches stability

LPL FINANCIAL HOLDINGS said it was laying off 55 workers in Houston who worked at Atria Wealth Solutions, a rm that LPL acquired last year. At the same time, LPL is in the middle of a charm offensive designed to calm advisors within the near-3,000 nancial advisors registered with Commonwealth

This includes eliminating tribal knowledge, organizing templates, and making the client journey repeatable across the rm − not just for one superstar. According to Greiwe, the average advisor loses 38 minutes a day simply trying to nd something in the moment they need it.

These time leaks aren’t minor − they’re existential threats to scale. And they’re often reinforced by another blind spot: overreliance on gut feelings.

Financial Network, which LPL announced it was acquiring for $2.7 billion at the end of March.

LPL is an acquisition machine, but the two deals are designed differently, LPL insiders and industry observers were quick to note.

The purchase of Atria, with 2,400nancial advisors and an asking price of $805 million, was built on eventually integrating the rm into LPL and bene ting from savings. Meanwhile, the acquisition of Commonwealth keeps the rm as a separate entity inside of LPL.

GPB Capital execs get seven and six years in prison

SEVEN YEARS after GPB Capital Holdings, the high-risk, high-cost private placement manager, began to unravel because of accounting shortfalls, its two senior executives, founder David Gentile and broker-dealer and sales chief Jeff Schneider, received justice. In fed-

eral court in Brooklyn, Gentile and Schneider were sentenced, respectively, to seven and six years in prison, according to a spokesperson for the Justice Department.

Last August, a jury in federal court in Brooklyn found Gentile, 58, guilty of ve counts of fraud and Schneider, 56, three. The federal government’s charges stemmed from Gentile and Schneider’s management of GPB Capital Holdings, which was founded in 2013.

Before starting GPB, Gentile was a longtime accountant in Long Island and Schneider a broker-dealer executive and salesman.

Suspended broker went all in with GWG bonds

FINRA HAS suspended and ned a former broker who, in 2019, invested 96 percent of a client’s investable assets and net worth into a high-risk alternative investment, GWG Holdings bonds, which are now practically worthless.

The former broker, Phillip C. Anderson, worked for 40 years in the securities industry, most recently in Roseville, CA for Kingswood

Cetera taps Envestnet alum as RIA platform head

IN ANOTHER move to enhance its leadership, Cetera has appointed Andina Anderson to lead its RIA Blueprint platform, part of a broader effort to strengthen the rm’s offerings for independent and hybrid advisors looking to grow their businesses.

Anderson steps into the role

Capital Partners, according to his BrokerCheck pro le. He left that rm in 2023 and is no longer working as a broker, the pro le indicated.

In two instances of the sale of GWG bonds, Anderson’s “recommendations were unsuitable based on the customers’ investment pro les,” according to FINRA, and the broker therefore violated industry rules.

of managing director of digital solutions and head of RIA Blueprint, a platform positioned at the center of Cetera’s Wealth Hub strategy.

In her expanded role announced Thursday, she will oversee the platform’s strategic expansion, with a focus on supporting af liated RIA rms through technology, compliance services, and advisor support teams.

RIA Blueprint plays a key part in Cetera’s multi-af liation model, which provides infrastructure and operational exibility to advisors seeking autonomy while remaining connected to the rm’s broader ecosystem.

LIBBY GREIWE

Regulation

Florida rm hit with ne for noncompliant RILA recommendations

A FIRM has been censured and hit with a six- gure penalty by FINRA, nding failure to ensure hundreds of annuity recommendations made by its representatives were in their clients’ best interests.

AAG Capital has agreed to pay $138,591.39 in penalties and restitution after FINRA found the rm’s practices surrounding registered index-linked annuities fell

Ex-Osaic advisor ned over failure to declare $1M bequest

FINRA HAS ned and suspended an ex-Osaic advisor after nding violations of the industry regulator’s rules by failing to disclose a million-dollar bequest from a client.

Kenneth John Malm, a former general securities representative

NASAA urges FINRA to expand scope of outside business

short of the Regulation Best Interest standard.

In a settlement, FINRA stated that from February 2021 through April 2023, the Florida-based rm recommended 479 RILA transactions totaling over $92 million in principal. Of those, 41 were funded through the exchange of existing insurance or annuity contracts totaling more than $7.9 million.

in New York, has agreed to a suspension and a ne after FINRA found he accepted a more than $1 million bequest from a client without notifying his rm.

Malm had been registered with FINRA since 1994 and was associated with Securities America from July 2020 until June 2024.

Following a mass transfer, he became af liated with Osaic Wealth, where he remained until August 2024.

Stifel fights one giant claim, quietly settles others

FINANCIAL’S broker-dealer arm is quietly settling a series of customer complaints involving star broker Chuck Roberts while simultaneously working in federal court to overturn the stunning $133 million customer complaint it lost in March.

According to Roberts’ BrokerCheck pro le, Stifel Nicolaus & Co., the broker-

report. Clients’ allegations against the rm included breach of duciary duty, negligence, and fraud.

Meanwhile, in federal court in Miami on May 16, Stifel Nicolaus led its motion to vacate the $133 million arbitration award. In its ling, the rm said the FINRA award, a majority of which consisted of

“Our firm has filed additional cases involving Roberts, and we believe there are additional investors out there”

JEFF EREZ, PLAINTIFF’S ATTORNEY

dealer arm of the holding company, settled one investor claim related to Roberts in February for $205,000, another in March for $2 million, and one more in April for $16 million.

The products clients purchased included structured notes and hedge funds, according to the BrokerCheck

punitive damages and attorneys’ fees, was “a shocking, runaway award in a FINRA arbitration that was infected with fundamental prejudice by a panel member who had already pre-determined that Stifel had acted improperly and lied about her ability to be impartial when she refused to step aside.”

CITING RISKS to the investing public, NASAA is urging FINRA to signi cantly expand the scope of its proposed rule governing outside business activities by associated persons at broker-dealer rms. In a comment letter in response to FINRA’s Regulatory Notice 25-05, the North American Securities Administrators Association expressed several concerns with FINRA’s proposed Rule 3290, which would combine FINRA’s existing Rules 3270 and 3280 to simplify requirements for registered BD rms.

What should RIAs have on their regulatory radar right now?

While acknowledging improvements over an earlier version oated in 2018, the letter contends that key elements of the newer proposal could still weaken protections for investors unless revised.

IT HAS been several weeks since Paul Atkins, President Donald Trump’s favored nominee to head the SEC, made his return to the agency as its new chair.

While Atkins’ leadership at the SEC represents a turning point for regulation, Lisandra Wilmott, general counsel at Savvy Wealth, says it shouldn’t be a reason for RIAs to get complacent.

“RIAs should never feel an in ated sense of con dence around the idea that a change in SEC chairman would allow them to loosen up the reins on their compliance or surveillance practices,” Wilmott said.

STIFEL

“The result was the largest award in FINRA history in a retail customer arbitration,” according to the ling. FINRA arbitration panels awarding large amounts of punitive damages is uncommon.

A spokesperson for Stifel declined to comment about any potential settlements with customers.

InvestmentNews reported almost two years ago that Roberts, a veteran nancial advisor with Stifel Nicolaus, faced a rash of investor complaints stemming from the sale of potentially volatile structured notes, the performance of which is typically tied to an underlying asset, such as a speci c stock or an index like the S&P 500 stock index.

Stifel began losing investor complaints in 2024, as investors won multimillion-dollar awards in the securities industry private legal forum, FINRA Dispute Resolution Services. Then, this winter, it lost the giant claim to David Jannetti and family members, who in 2023 sued Stifel Nicolaus.

SIFMA urges SEC: rethink cybersecurity disclosure rule

A COALITION of nancial industry trade associations is calling on the Securities and Exchange Commission (SEC) to roll back key portions of its cybersecurity disclosure rule, arguing that current requirements force companies to make premature public statements that could harm investors and empower bad actors.

The competing legal strategies, recently settling investors claims behind closed doors and duking it out in court over the Jannetti decision, appear contrary to Stifel’s public statements about defending Roberts’ structured notes’ strategy.

Wall Street banks underwrite structured notes, which can be volatile because they’re a hybrid of a bond and a derivative. Some notes have principal protection, but others don’t, and investors can lose a portion or all of their principal based on the terms of the note and market volatility.

In the past, Stifel has said it would move to or attempt to vacate the awards in federal court, with judges in that venue reluctant to overturn private arbitration decisions.

Jeff Erez, a plaintiff’s attorney representing many of the customers suing Stifel, including the Jannetti family, declined to comment about any ongoing or past legal claims.

“Our rm has led additional cases involving Roberts, and we believe there are additional investors out there,” Erez said.

In a joint petition, the American Bankers Association, Bank Policy Institute, Securities Industry and Financial Markets Association, Independent Community Bankers of America, and the Institute of International Bankers requested that the SEC rescind its Form 8-K Item 1.05 rule. That provision requires public companies to disclose material cybersecurity incidents within four business days of determining their signi cance.

Don’t stop ghting for Retirement Security Rule, coalition urges DOL

A COALITION of national nancial planning organizations is urging the Department of Labor (DOL) to stay the course on a proposed duciary rule aimed at protecting retirement investors.

In a joint open letter to Labor Secretary Lori Chavez-DeRemer dated May 22, leaders of the CFP Board, Financial Planning Association, National Association of Personal

Financial Advisors, and XY Planning Network reaf rmed their support for the Retirement Security Rule.

The proposed regulation would require nancial professionals to provide advice on retirement assets in clients’ best interests – extending protections not fully covered under existing frameworks like the Securities and Exchange Commission’s Regulation Best Interest.

LPL faces regulatory actions on emails, chat app

snafus

JUST AS LPL Financial Holdings is in the middle of its acquisition of Commonwealth Financial Network, the giant broker-dealer is also facing the overhang of compliance issues. These issues include signing clients’ emails and using chat apps, which have dogged the rm for years and currently been brought again to light by state regulators.

According to South Dakota’s Division of Insurance, Department

of Labor and Regulation, LPL’s advisors misused email and how they signed off on client documents. LPL in April agreed to pay a penalty of $35,000 to settle the matter.

Also in April, LPL agreed to pay a ne of $325,000 to New Hampshire after a nancial advisor was allegedly using a chat app to communicate with clients, according to the state’s Bureau of Securities Regulation.

UBS loses Ocean Capital lawsuit

A HIGH-PROFILE proxy dispute between Puerto Rico mutual funds and a group of activist investors has ended decisively, with the US Court of Appeals for the First Circuit af rming the dismissal of all claims brought by the funds.

The First Circuit upheld a lower court ruling that rejected allegations from nine closed-end mutual funds, each investing primarily in Puerto Rico municipal securities. The funds

claimed that Ocean Capital LLC and af liated investors violated federal securities law by acting as an undisclosed group during proxy contests and by making misleading statements in their lings.

The dispute emerged in 2021, when Ocean Capital and several individuals launched campaigns to nominate new directors across the nine funds.

How are de ned bene t plans navigating the volatile market?

THE VOLATILE market is creating ongoing shifts in the funded status of America’s de ned bene t pension plans, so how are plan sponsors navigating the choppy waters?

Strategies are being redrawn to manage the situation following a period of relative stability, and MetLife Investment Management’s lead LDI strategist, Jeff Passmore, said there has been a con uence of events that

have reinforced plan sponsors’ plans for derisking pension asset allocations.

“Equities have experienced multiyear above-average returns. Four of the last ve and seven of the last 10 years have had double-digit stock returns. This has improved funded status for pensions and given many the opportunity to derisk that they have been waiting for,” he said.

How long will my retirement savings last? Most Americans can’t answer

THE IMPACT of in ation on retirement savings in the US is clear, and it remains a key concern of retirees and those who are planning for their retirement years.

In ation is the most-cited concern among 1,500 US investors nationwide aged 29–79, including 373 retirees, in a survey conducted on behalf of Schroders. It found that 84 percent wish they could better protect their retirement savings from in ation.

More than six in 10 respondents admitted that they do not know how long their retirement savings will last, and only 40 percent believe they have enough saved. Meanwhile, 45 percent of those already retired say expenses have been higher than they had expected, especially healthcare, and report spending an average of 15 percent of their total monthly income on healthcare costs such as insurance premiums and prescription costs.

Morningstar study on long-term-care costs gets pushback

A NEW Morningstar report warns that long-term-care expenses could dramatically undermine the nancial readiness of American retirees. But the study’s conclusions are facing pushback from a Washingtonbased policy expert, who argues the analysis exaggerates households’ actual exposure to those costs. In “The Overlooked Cost: How Long-Term Services and Supports

Impact Retirement-Income Adequacy,” Morningstar researchers Spencer Look and Jack VanDerhei used a proprietary model to simulate the retirement outcomes of American households under two conditions: one that includes longterm services and supports, or LTSS, and another that assumes those costs are fully covered by outside sources.

Clients can’t plan for retirement like their parents did

RETIREMENT PLANNING can’t rely on averages anymore − because no one lives an average life. Longevity has become a moving target, and the real risk isn’t just outliving your money − it’s not knowing how long you’ll need it.

The life expectancy gap between rich and poor Americans has more than doubled since 1920 − now exceeding 12 years for men and 10 for women, according to Brookings. Retirement timelines are increasingly unequal − shaped by income, geography, and even drugs like GLP-1s.

Sri Reddy, senior vice president of retirement and income solutions at Principal Financial Group, has spent 25 years navigating these shifting realities. He’s pushing the industry to meet people where they are − emotionally, behaviorally, and nancially − by building systems that guide them automatically, even if they never ask for help.

“Longevity isn’t guaranteed. And it

Americans are losing hope of reaching their nancial goals

WHAT’S GONE wrong in the last ve years that has damaged the nancial con dence of so many Americans? With the list of challenges including

isn’t uniform,” Reddy says. Variability in life expectancy − driven by work, education, and location − creates deep uncertainty. “Are you in a position to actually enjoy the fruits of your labor to spend the money?”

That unpredictability stands in sharp contrast to past generations, he adds, when de ned-bene t pensions made retirement more stable. “Now, we have to think about it differently.”

START EARLY, SIMPLIFY OFTEN

For Reddy, the focus is on early, guided decision-making. “We have to think about tools and solutions that are available in the plan while you’re saving,” he says, pointing to target date funds, managed accounts, and default investment options.

Principal is doubling down on access to nancial advice. “We think a lot more people probably need it than get it today or ask for it,” Reddy says.

the pandemic, wars in Ukraine and the Middle East, in ation, tariffs, and so on, it would be surprising if sentiment hadn’t re ected these signi cant dents in personal nances.

A 2025 survey from Allianz Life reveals 70 percent of respondents are condent in being able to nancially support all the things they want to do in life, down from 83 percent in January 2020.

The good news is that an overwhelming 96 percent of respondents say they know what is needed to boost their condence – setting nancial goals and developing plans to achieve them.

“Longevity isn’t guaranteed. And it isn’t uniform”

The rm is building systems that work even when people take no action. “If you do nothing, you get defaulted. And if you still do nothing, you’re still appropriately invested and rebalanced along the way.”

Principal has also added income tools inside plans. “We partnered with several organizations that have created retirement income innovations, but we’ve also had our own Principal Pension Builder solution, which is a deferred, immediate annuity.”

It’s a long-term strategy that must adapt as preferences evolve. “How people interact, save, and compartmentalize will force us to continually refresh,” Reddy says.

EMOTION MEETS VOLATILITY

While the headlines feel louder, the fundamentals haven’t changed much.

“As the Dow and NASDAQ have gotten bigger, point movements are higher,” says Reddy, “but as a percentage, they’re not that different.”

Still, retirees drawing income during downturns face real risk. Reddy recommends a layered strategy: identify discretionary and non-discretionary needs, keep a rainy-day reserve, or use an annuity to cover essentials.

He also sees inertia as a tool. “The number one force that drives human beings is inertia,” Reddy says. “Creating choice architecture takes this powerful force and uses it to help them.”

Are advisors missing retirees’ needs in ‘fragile decade’?

A RECENT survey from Global Atlantic Financial Group suggests a persistent disconnect between nancial professionals and their clients nearing or in retirement, particularly around the need for guaranteed income and investment protection.

The 2025 Retirement Outlook Survey polled 514 nancial advisors and 1,009 investors between the ages of 55 and 75, each with investable assets ranging

from $250,000 to $2 million.

The ndings reveal that while advisors and investors may share concerns over issues like in ation and rising healthcare costs, their priorities around retirement strategies diverge in critical ways.

Just 66 percent of advisors said they prioritize retirement investments that provide a steady income stream, compared with 88 percent of investors.

Empower opens door to private markets in retirement plans

EMPOWER IS opening the door for retirement-plan participants to invest in private markets, becoming the largest retirement-plan provider to take this step in a move that could expand access to asset classes traditionally reserved for institutional and high-net-worth investors.

The retirement plan behemoth has announced a new program that will offer access to private equity, private

credit, and private real estate through collective investment trusts.

The investments will be available to de ned-contribution retirement plans such as 401(k)s, provided that employers choose to make the option available to their workers, according to an Empower release.

What advisors should know about purposeful retirement

AS EVERY generation reaches retirement age, this hugely transformative – and often challenging – phase of life evolves.

In 2025, retirement for many Americans is so different from how it would have been for their parents, who may have heavily focused on giving up work and enjoying some more leisure time but would not have imagined the kind of active, purposeful retirement sought today.

Recent research from Edelman Financial Engines discloses that 39 percent want their retirement to be “adventurous,” 42 percent want to stay active, 26 percent want a minimalistic retirement, and 24 percent seek a nomadic lifestyle.

However, achieving these aims may be an issue, with 65 feeling only somewhat con dent in doing so and 35 percent saying their ideal retirement lifestyle feels out of reach.

401(k) savers say retirement income security should be a shared responsibility

EMPLOYEES PAYING into retirement plans are increasingly interested in guaranteed monthly income options and want employers to help them achieve nancial security.

More than nine in 10 who contribute to 401(k) plans say they believe it is important for plans to offer guaranteed monthly income options that will last throughout their retirement years, with all four

working adult generations aligned in this.

Almost as many say employers have a responsibility to help them achieve retirement income security, up from 61 percent two years ago. This is strongest among the two youngest generations of American adults – 57 percent of Gen Zs and 54 percent of millennials – compared to the older cohorts – around one-third of Gen Xers and boomers.

YourPractice

Why the off-channel comms problem is far

from solved

AFTER FACING years of hairraising nes and penalties around record-keeping violations, some RIA rms might take recent leadership and organizational changes at the Securities and Exchange Commission (SEC) as a chance to ease up their compliance efforts.

But, according to one compliance expert, that’s exactly the wrong approach to take.

“With the new SEC commissioner, there may be a slight pivot, espe-

How advisors might be fumbling the great wealth transfer

BY 2030, women will control over $34 trillion in North America alone. Millennials and Gen Z are set to inher-

cially when it comes to off-channel communications,” Lilian Colpas, director and head of investment advisory support at Compliance Risk Concepts, said.

Over the past several years, the SEC under Gary Gensler has conducted an aggressive campaign against record-keeping violations, leading to billions of dollars in penalties for rms it said did not adequately oversee their advisors’ use of unapproved messaging channels.

it the bulk of an $84 trillion windfall by 2045. This represents a fundamental shift in who holds wealth and how they want it managed.

Van Dusen, CEO and founder of LVW Advisors, says, “From everything I can tell, women will control roughly 45 percent of the world’s wealth within 10 to 15 years,” she said. “Which is a statistic that would have blown Susan B. Anthony’s mind.”

That shift isn’t just about who’s giving the advice – it’s about how it’s delivered. “You have to really be relationship-driven. Listen, ask a lot of open-ended questions. Be willing to teach, mentor, and integrate,” she said.

Wealth managers see Roth conversions as bright side of market volatility

THERE’S NO doubt that market volatility is unnerving for investors. And, yes, these wild market swings require a whole lot of hand-holding by advisors to soothe the fears of anxious clients.

But there is an upside to markets that collapse on a dime, or a tweet. An oversized drop in stocks could also signal the perfect opportunity to take advantage of a Roth conversion.

“If a client converts when the market is down, the eventual recovery occurs within the tax-free Roth account. This matters because a Roth conversion creates an immediate tax liability in the year of the conversion,” said Chris Mohring, senior wealth advisor at Quotient Wealth Partners.

FOCUS

Why human advice still reigns supreme for HNW

AI MAY accelerate ef ciency, but it can’t replace empathy. Tim Thomas argues that high-net-worth (HNW) clients still measure value in trust − not processing speed.

Wealth management rms are rapidly adopting AI to boost productivity. According to a 2025 McKinsey report, generative AI could deliver time savings of 6−12 percent for advisors by 2034, assuming a 30−40 percent adoption rate of advanced tools. While the ef ciencies are real, they are not transformative on their own. For HNW clients, meaningful advice still hinges on personal trust, not automation.

With decades in private wealth, Tim Thomas, chief investment of cer and wealth manager at Badgley Phelps, sees AI as a valuable tool, but one that belongs behind the scenes. He uses it for routine tasks, freeing up time for the work that clients value most.

Still, the heart of his practice remains human. “It’s not about automation or computational capabilities,” he says. “It’s about a great emotional human connection.”

Great advisors, Thomas believes, succeed by connecting on a personal level. “They nd ways to relate to clients in a way that resonates, that

allows them to in uence decisions, offer guidance, and build trust.”

EFFICIENCY WITHOUT EMPATHY IS NOT THE GOAL

As wealth management rms race to integrate AI into their platforms, Thomas cautions against confusing scale with personalization. He doesn’t dismiss AI − in fact, he actively uses it − but he is unambiguous about its role.

“We want to apply the AI to repetitive tasks or quantitative tasks or things that require a lot of computational rigor,” he says. “But when it comes to delivering the advice and delivering the key offerings, those are all done face to face and by establishing that human connection.”  It is not resistance to change that de nes his stance, but a measured understanding of what technology should and should not replace. AI has transformed how Thomas handles back-end tasks, streamlining notetaking, automating summaries, and uploading key insights directly into the rm’s CRM system.

“I use it all the time to help with research and note taking,” he says. “It’s a huge ef ciency tool.”

But those tools, he insists, cannot

Commonwealth’s college partnership opens doors for rst-gen students

COMMONWEALTH FINANCIAL Network internship initiative, in partnership with Boston College’s Messina College, will assist rst-generation college students. The collaboration is set to begin this fall, welcoming 10 students to Commonwealth’s Waltham headquarters.

The internships, which will run during the fall semester, are designed to offer foundational exposure to roles across wealth management. The partici-

pants, all of whom are part of Messina’s inaugural class, will contribute 10 to 12 hours per week while continuing their academic coursework.

By that timeline, the interns could be learning the ropes at a new incarnation of Commonwealth acquired by LPL. In its late March acquisition announcement, LPL Financial projected the $2.7 billion all-cash deal would be completed in the second half of this year.

Advisory rm moms share high satisfaction but report early parenthood hurdles

MOTHERS WORKING in advisory rms are broadly satis ed with their careers, though the earliest stages of parenthood often present steep challenges, according to new ndings from The Ensemble Practice.

The rm’s latest survey, which gathered responses from 137 mothers in advisory roles, found that more than half rated their career satisfaction as a 9 or 10 out of 10, while another 41 percent gave scores of 7 or 8.

How much do af uent clients love fee-based planning?

“It’s not about automation or computational capabilities. It’s about a great emotional human connection”

TIM THOMAS, BADGLEY PHELPS

become a crutch that diminishes personal engagement. “We want to use the tools that it provides,” Thomas adds, “but not let that interfere with the human connection.”

CREATING SPACE FOR WHAT MATTERS

For HNW clients, wealth isn’t just numbers. It is often entangled with family dynamics, legacy planning, and

Advisors ignore succession planning at their own peril

ACCORDING TO Cerulli Associates, nearly 40 percent of advisors at the more than 18,000 independent advisory rms serving investors across the country are expected to retire over the next 10 years, and at least a third of those rms are operating without formal succession plans.

ED KURESMAN

deeply personal priorities. Discretion and trust hold a premium, and that is where Thomas sees AI offering an unexpected bene t: freeing up time for the kind of meaningful conversations that clients truly value.

“I think AI does boost ef ciency. It allows you to spend more time doing the work that clients are paying you for: investment research [and] nancial planning,” he says.

“So many advisors are focused on the business, and they’re not planning for their own retirement,” said Stephen Caruso, associate director at Cerulli.

Among survey respondents, 29 percent had at least one child aged three or younger, and this group was disproportionately represented among those reporting deeper dissatisfaction with their careers. The early years of parenthood often coincide with heightened work-life tension, increased childcare costs, and reduced ownership or leadership opportunities.

WHILE A growing share of af uent investors say they prefer fee-basednancial advice, many still opt for other compensation models, according to new research from Cerulli Associates.

Cerulli’s analysis draws on data from its Af uent Investor Tracker, which surveys investors with at least $250,000 in nancial assets, providing insights into how compensation preferences vary by provider type and client segment.

One CEO’s ght against deceptive index return reports

WHEN MARK HEBNER launched Index Fund Advisors, he likely didn’t expect that, 25 years later, a routine client presentation would reveal

In its second-quarter US Retail Investor research report, Cerulli found 36 percent of af uent investors favor fee-based compensation. However, the study also shows that 33 percent of respondents pay their provider via an asset-based fee. A sizable number still use no-fee platforms (21 percent) or commission-based structures (20 percent), only slightly trailing those who express a preference for those options.

what he describes as misleading index returns.

“It was our own display for our clients that initiated this,” said Hebner, founder and CEO of Index Fund Advisors. “If it wasn’t for that, I don’t think I would have ever noticed this myself.”After realizing the glaring mistake, Hebner came to notice a persistent misrepresentation of index returns by virtually all major media outlets and data providers. Hebner has become increasingly vocal about what he calls a systemic accounting error in stock market performance reporting – the omission of dividends from widely cited indices.

TIM THOMAS

Investing

How one CEO protects his assets

IN TODAY’S environment of geopolitical instability, shifting regulatory winds, and post-pandemic economic uncertainty, the allure of alternative investments has intensi ed. But Thomas Bartholomew, president and CEO of Bartholomew & Company, is not sold on the idea that these instruments have suddenly transformed into nancial safe havens.

“I’m not sure that they are safe havens in this climate,” he explains. “I’m not sure they’re any different than they were before the rst of January anymore.”

His view challenges the prevailing narrative in some corners of the investment world that infrastructure, hedge funds, and private equity have matured into modern-day anchors of stability. Instead, Bartholomew maintains that while investor interest in alternatives has grown, their risk pro le hasn’t fundamentally shifted.

“Are people turning to them? Yes. Are they safe havens? Everything’s relative,” he says.

The real driver behind the uptick in conversations around alternatives, he

Financial advisors take little mind of Moody’s

US downgrade

AMERICA’S CREDIT is perfect no more, now that Moody’s has nally downgraded the country’s debt rating. Not that nancial advisors seem too worried about it.

Moody’s cut its US credit rating to Aa1 from Aaa last month due to concerns over the country’s rising debt obligations. Moody’s was the

explains, is performance-based. Coming off strong years in 2023 and 2024, investors are now eyeing strategies that offer reduced correlation to traditional asset classes.

“We wanted to have less correlation in the portfolio amongst all asset classes. That conversation has now spilled into 2025 because of what’s going on,” he says.

Global con icts, in ation anxiety, and interest rate uncertainty have creeped into market sentiment, along with more subtle signals that the recent bull run might not be sustainable, according to Bartholomew. For many investors, particularly high-net-worth individuals and institutions, the pivot is not necessarily about safety. It’s about returns, diversi cation, and mitigating downside risk.

“I think many clients are absolutely convinced that we’re not going to have the same kind of returns going forward that we’ve had the last couple years,” he says.

Bartholomew sees increased activity in private credit, though he’s quick to temper enthusiasm with a warning: the asset class remains widely misunderstood. “It’s a

last of the major three rating agencies to lower its grade, with Fitch Ratings downgrading the US in 2023 and S&P Global Ratings making the move in 2011. Moody’s downgrade ends a 108-year perfect rating from the rm.

Eric Amzalag, CEO and founder of Peak Financial Planning, said Moody’s downgrade is pure “performance art.” He added that Washington’s inability to restore scal discipline does pose a structural risk for investors, but not in the short or even the intermediate term.

“Are people turning to alternative investments? Yes. Are they safe havens? Everything’s relative”

THOMAS BARTHOLOMEW, BARTHOLOMEW & COMPANY

high-yield asset class; it’s a leveraged asset class. There’s a lot of risk in it,” he says.

Liquidity has become the hedge for Bartholomew. Clients are building their own buffers with higher-quality, shorter duration holdings, rather than relying solely on traditional hedging strategies.

“There’s a lot of banks in trouble in this country right now that people won’t talk about,” he says. “Balance sheets are still upside down from ve years ago. They’ve got 2–3 percent mortgages on the books

Coming advisor shortfall has advisors

turning

to AI

STUDIES SHOW there’s a scarcity problem brewing in the wealth management industry. Over the coming decade, fewer advisors will be serving more and more clients. Those professionals that view this market imbalance as an opportunity have a chance to enjoy remarkable growth.

and they carry 65 cents on the dollar. And nobody’s talking about it.”

With this in mind, Bartholomew is urging caution around illiquidity. The more exposure to illiquid assets, the more liquid, safe xed income he recommends for offsetting the risk.

“If something goes awry with that risk of illiquid or limited liquidity or impaired liquidity, I’ve got 100 percent liquidity, essentially on the other end to balance that liquidity risk,” he says.

Those that don’t could very well disappear.

The difference, and the wild card, advisors say, is technology.

Consulting rm McKinsey estimates by 2034, at current advisor productivity levels, the advisor workforce will decline to the point where the industry faces a shortage of roughly 100,000 advisors. Mix that with a wealth transfer of $124 trillion through 2048, according to the latest Cerulli projection, and that creates signicant opportunity for wealth managers like Cooke Financial Group’s Tammy Williams, who is already planning to take advantage of the coming dislocation.

Last chance to submit your nominations

The Women to Watch Awards recognize leaders who are setting new standards in financial advice. Their decisions shape markets, their strategies influence policy, and their leadership paves the way for the next generation. These awards highlight the achievements that redefine success and push the industry forward.

Celebrate a woman whose influence deserves recognition. Nominations close June 13.

Submit your nominations today.

Luxury brands are suffering; high-networth clients still spending

BASED ON recent earnings releases from posh fashion purveyors including LVMH and Burberry, high-net-worth individuals appear to be cutting back on luxury items.

It seems sensible to deduce that high-net-worth (HNW) individuals are tightening their purse strings or, at the very least, altering their consumption habits, due to tariff or recession fears.

However, Dave Alison, president and founding partner of Prosperity Capital Advisors, said:“While the tariffs drove a lot of uncertainty and caused market losses, most of our HNW clients stayed the course with their investment plan, and some even doubled down to buy the dip, and since the market has mostly rebounded, they

How advisors guard against client poaching

HEIGHTENED PERIODS of market volatility certainly spur nancial advisors to play defense within client portfolios. When such wild market swings take hold, nancial advisors also had better protect themselves from losing that client’s entire account. Why? Because those same unnerved clients are at their most susceptible to being poached by competitors when the investing environment becomes unbalanced.

Wealth managers not worried by lack of corporate guidance

WALL STREET uncertainty reached a whole new level after a slew of S&P 500 companies cancelled their full-year earnings guidance due to President Donald Trump’s tariffs.

Financial advisors, however, don’t seem to mind ying blind. At least for the time being.

Tim Holland, chief investment of cer

have been rewarded, and I believe their con dence in spending hasn’t shaken due to the fact that the market drawdown was so short-lived thus far.”

Jake Schoenfeld, associate at TritonPoint Wealth, believes “open and honest communication” is key. “While the headline risk cannot be washed away with words, helping the clients zoom out and see the bigger picture is extremely meaningful and provides a human touchpoint that can differentiate how you operate your practice.”

at Orion, for one, has sympathy for the folks at S&P companies pulling their earnings guidance due to all that’s going on in Washington, adding he is “not surprised” to see them take such defensive actions. Still, Holland maintains the lack of guidance or diminished guidance isn’t impacting how he is allocating capital on behalf of clients.

Berkshire Hathaway a ‘safe haven’ in a messy market, advisors say

BERKSHIRE HATHAWAY released impressive quarterly earnings and also held an annual event where the company’s 94-year-old founder Warren Buffett announced his coming retirement.

Boosting the rm’s stellar results were its ample cash reserves and defensive positioning amid a market in turmoil. Tariffturmoil, to be speci c. Cash and cash equivalents at Buffett’s holding company totaled about $321 billion, which takes into account payables for Treasury bill purchases, at the end of 2024.

Christopher P. Davis, founding partner at Hudson Value Partners, headed to Omaha to attend Warren Buffett’s so-called Woodstock for Capitalists. “The combination of resilient, defensive businesses and substantial cash holdings have

Advisors don’t see ESG turnaround anytime soon

THE US backlash against ESG nally appears to be going global, based on rst-quarter fund ows. Meanwhile, domestic nancial advisors, for their part, don’t see that money coming back into sustainable funds anytime soon.

Global sustainable funds saw record out ows of $8.6 billion in

added to its attractiveness this year but are what draw long-term holders like us in year after year,” Davis said.

the rst quarter of 2025, reversing $18.1 billion in in ows from the previous quarter, according to a Morningstar report. It was the 10th consecutive quarter that American investors yanked money from sus -tainable funds, with withdrawals reaching $6.1 billion for the period.

Most notably, Europe saw its rst net out ows since 2018, with $1.2 billion in out ows compared to $20.4 billion in in ows in the last three months of 2024.

‘Sell in May and go away’? Wealth advisors say, maybe not

THE OLD Wall Street adage, “Sell in May and go away” may sound trite, but the numbers say it’s also, to some extent, true.

If that’s the case, why don’t more nancial advisors use it as an investment strategy?

As tempting and simple as this seasonal strategy sounds, Stuart Katz, chief investment of cer at Robertson Stephens Wealth Management, advises against it.

“Periods of heightened tariff tensions or cute rules of thumb like ‘sell in May’ can tempt even seasoned investors, but history shows that staying invested is usually the wiser path. Staying invested is especially prudent for taxable accounts where there is a tangible cost to buy and sell,” Katz said.

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