401(k) Aggregator Adds Major Retirement Planning Firm

401k, retirement, aggregation,

Strength in numbers.

Aggregators in the 401(k) space are on the rise. Named for the way they share a common strategy of growth through acquisition or affiliation, they’ve also become a primary focus of many DCIO sales and marketing units, according to a recent report from Sway Research.

Able to better take advantage of economies of scale and RIA services (among other benefits), their strength-in-numbers strategy is leading to greater parity among firms, giving smaller practices a fighting chance.

“With each new acquisition, these firms grow in scale and importance and are now beginning to raise demands on DCIOs for custom investment vehicles to lower DC plan costs and increase their competitive advantage,” Sway noted. “Not only are defined contribution assets consolidating with aggregator firms, but leading recordkeeping platforms are also expanding market share and beginning to demand more of DCIO managers for access to their staff and placement within their 3(38) models and select lists.”

It counts 15 firms in the aggregator universe, which managed roughly $640 billion of DC assets at the end of 2017.

One such aggregator, Resources Investment Advisors, made a major announcement Monday with the successful

Vince Morris, Resources Investment Advisors.

recruitment of Retirement Benefits Group (RBG), a retirement plan-focused advisory firm with over $10 billion in assets under administration.

RBG is headquartered in San Diego and has 15 affiliated offices throughout the country and 68 advisors and staff.

Based in Overland Park, Kansas, Resources Investment Advisors serves approximately 160 advisors across 48 affiliated offices, who collectively advise more than 2,100 corporate retirement plans with approximately $36 billion in total assets under management.

The group’s advisors also have more than $3 billion in total client assets through their wealth management operations.

RBG will continue to support independent financial advisors under its current brand and leadership structure.

“Plan participants need more in-depth and sophisticated offerings to help them properly prepare for retirement, while sponsors need more comprehensive guidance, expertise and innovation from the advisors who support their plans,” Vince Morris, founder and president of Resources Investment Advisors, said in a statement. “Along with multiple investments we have made over the past two years in significantly expanding our support infrastructure, our announcement today further strengthens the market position of both Resources and RBG, with the enhanced scale and market reach our advisors need to stay one step ahead in this environment, for the benefit of both their businesses and their clients.”

Resources Investment Advisors and RBG are affiliated with Triad Advisors, an independent broker-dealer subsidiary of Ladenburg Thalmann.

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