In our latest corporate roundup, Alera Group acquires $24B Advanced Capital Group, NewRetirement changes its name to Boldin, and American Life & Security Launches a new fixed-indexed annuity.
Alera Group Buys Advanced Capital Group
Alera Group, a national insurance and financial services firm, is acquiring Minnesota-based Advanced Capital Group (ACG). The acquisition adds $24 billion in retirement plan and wealth assets. Alera Group continues to grow in the Retirement and Wealth space, and this new acquisition brings Alera Group Retirement and Wealth Services to a total of $45 billion across both businesses.
ACG is a national leader in institutional investment consultants for employer-sponsored retirement plans, endowments and foundations, and Native American tribal trusts. ACG also manages fixed-income portfolios for defined-benefit plans and other institutional clients.
“In joining forces with Alera Group, we have the opportunity to help build one of the fastest-growing retirement plan services platforms in the country,” said Charles Langowski, principal and CEO. “Our shared resources and expertise will enable us to deliver unparalleled service to our plan-sponsor clients in support of their employees’ financial futures.”
Over the past two years, Alera Group has implemented a Retirement Plan Services growth strategy that seeks to serve retirement plans of all sizes.
“Charles and the ACG team have built an incredible practice by delivering genuine expertise to both defined-contribution and defined-benefit clients, and I’m excited to welcome them,” said Christian Mango, Executive Vice President and National Practice Leader, Retirement Plan Services. “Their addition brings new capabilities to our platform, enhances our investment depth and expertise, expands our geographic reach, and adds a new distribution channel.”
The ACG team will continue serving clients in their existing roles. Terms of the transaction were not announced.
NewRetirement Becomes Boldin
NewRetirement, a digital-first financial planning platform for consumers and enterprise partners, has changed its name to Boldin, the company announced Wednesday.
Now Boldin, the firm also revealed new product capabilities and an expanded mission under the name change. The company is debuting holistic planning features aimed at aligning users with personal financial goals, such as buying a house or retiring early.
Boldin’s expanded mission will center around affordable, accessible financial planning to lower-income earners and younger participants. The company is introducing its Financial Wellness Dashboard, which includes the Boldin Financial Wellness Snapshot: an assessment of users’ financial health measured across more than 20 metrics. Boldin analyzes each metric and grades a user’s status as excelling (green), progressing (yellow), or vulnerable (red), providing a holistic view of their financial well-being.
In the near future, Boldin says it will introduce its Financial Wellness Score, which will assign a numerical value to user’s financial wellness based on their selected metrics. Similar to a credit score, Financial Wellness Scores will change over time, allowing users to easily visualize how their financial wellness has evolved.
“Boldin is unique in that we are 100% aligned with the end user, both in terms of our business model and our product offerings. Our users pay us and we work for them – full stop. I’m especially proud of the fact that we’ve built our tools in partnership with our community members. That feedback loop has been invaluable to our growth,” said Steve Chen, Founder and CEO of Boldin.
To date, more than 350,000 individuals have built financial plans using Boldin’s direct-to-consumer product. Individuals on Boldin manage their own plans with over $300 billion in assets.
In the months ahead, Boldin will invest in new features and artificial intelligence (AI) to support users at multiple stages of their financial journey, such as adding more collaborative planning features, offering different ways to visualize aspects of a financial plan, and creating new explorers that will help users evaluate different aspects of their financial life.
American Lift & Security Launches FIA
American Life & Security Corp. has launched its American Life MaxGrowth 10 Fixed Indexed Annuity (FIA). MaxGrowth is designed to enhance retirement savings through accumulation while offering the security of principal protection.
MaxGrowth is tailored for clients who prioritize accumulation over liquidity, focusing on maximum growth over a 10-year period.
According to American Life & Security Corp., key Features of MaxGrowth include:
- Enhanced Growth Potential: MaxGrowth enables policyholders to earn interest based on the performance of a chosen market index. With several index crediting options available, it allows for potential growth to be aligned with individual retirement goals.
- Principal Protection: Regardless of market conditions, MaxGrowth ensures that the policyholder’s principal remains protected from market losses, offering peace of mind.
- Diverse Interest Crediting Strategies: MaxGrowth includes various crediting strategies such as annual point-to-point, monthly sum, and performance-triggered options, providing flexibility to match financial objectives.
- Tax-Deferred Accumulation: Policyholders benefit from tax-deferred growth, allowing their retirement savings to grow until a withdrawal is elected.
- Real-Life Flexibility: The annuity allows for additional premium contributions within the first 6 months and offers a 5×5 Annuitization option for accessing the full Contract Value over 5 years after 5 years. 5×5 Annuitization is only available if no withdrawals other than RMDs have previously been taken. Additionally, MaxGrowth includes a Nursing Home Benefit rider for those who may need nursing home care.
American Life will work with index partners S&P Dow Jones Indices and Schroders, to offer the following crediting strategies within MaxGrowth:
- The S&P Market Agility 10 Index (S&P Market Agility 10 TCA 0.5% Decrement Index): The S&P Market Agility 10 Index is an equity-bond index that measures the performance of equity and fixed income component indices that each take long or short positions based on momentum and volatility indicators to respond to changing market conditions. RBC Capital Markets is the hedging partner for the index.
- The Schroders Global Compass Index: The Schroders Global Compass Index is a global multi-asset index that uses a dynamic allocation to seek positive return opportunities amid changing market conditions. The Index utilizes a rules-based approach to allocate across multiple asset classes, including global equities, government bonds, and energy commodities.
“We are thrilled to introduce MaxGrowth, the latest addition to our product portfolio designed to help retirees maximize their accumulation potential as they prepare for retirement,” said Tom Bumbolow, Head of Distribution and Business Development at American Life. “MaxGrowth represents the culmination of valuable feedback from our partners, agents, and clients. It is a testament to our collaborative approach and commitment to innovation, both central to our business model.”
MaxGrowth is distributed through American Life’s IMO partners and is now available for sale in the following states: Arizona, Colorado, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Michigan, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, South Dakota and Utah, as well as the District of Columbia, with expanded availability to American Life’s full state footprint soon.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.