This week in our corporate roundup, Paychex surpasses 120,000 retirement plan clients, Mutual of America announces a CEO transition, Nationwide and Savvy Advisors appoint new leaders, and more.
Paychex Exceeds 120,000 401(k) Clients
Paychex, Inc. announced it has surpassed a milestone for the number of 401(k) clients served, now administering plans for over 120,000 employers as of May 31, the company’s fiscal year end. The 401(k) plan recordkeeeper also surpassed $51 billion in assets under administration (AUA).
The Paychex Pooled Employer Plan, launched in 2021 to give business owners an affordable way to provide their employees with a retirement plan with fewer fiduciary and administrative burdens, has been adopted by 34,000 employers with more than $1 billion in plan assets.
“In the midst of a retirement savings crisis in America, we believe it is our purpose to help small- and mid-sized business owners offer an affordable retirement solution for their employees. Paychex enables 1.5 million Americans to save for their future; however, research shows approximately half of U.S. employers currently offer a retirement plan. We are committed to providing affordable solutions to these companies that will help them offer their employees the opportunity for a secure retirement,” said John Gibson, Paychex president and CEO.
“Legislation like the SECURE Act and SECURE Act 2.0, the introduction of pooled employer plans, and state mandates are helping, but there is more to be done,” Gibson added. “We are committed to educating business owners and industry professionals on available programs, potential tax benefits, and cost-effective plans available for them and their employees. We continue to provide robust retirement products and services, financial advisor and accountant partnership programs, and advocacy in the nation’s capital, because we acknowledge every American’s right to feel secure in their retirement.”
Mutual of America Appoints CEO
Mutual of America Financial Group has announced that Stephen Rich has been appointed chairman of the Board, chief executive officer (CEO) and member of the Board, effective immediately. Rich succeeds John Greed.
Rich was previously the chairman and CEO of Mutual of America Capital Management (Capital Management), the investment arm of Mutual of America Financial Group
“Stephen brings extensive leadership and industry experience, and a dynamic vision to lead the Company into this next chapter,” said Wayne Frederick, lead independent director of the Mutual of America Board of Directors. “We have full confidence in Stephen and the senior leadership team to further establish Mutual of America as the country’s premier retirement provider.”
Rich has over 33 years of financial services experience and prior to joining Capital Management, held various leadership positions across equity departments at JP Morgan Investment Management. At Capital Management, Rich grew the organization to $29 billion in assets under management.
“I am honored to be named Chairman of the Board and CEO of Mutual of America,” said Rich. “I’ve spent more than 20 years at the company, working closely with our Board of Directors, and I look forward to partnering with our talented team to strengthen the business, provide dedicated service to our valued clients and deliver on our mission to help individuals save for a financially secure future.”
Joseph R. Gaffoglio, current president, will assume the role of CEO of Mutual of America Capital Management. With more than 29 years of investment experience, Gaffoglio oversees management of the MoA Funds Asset Allocation and Clear Passage Funds, as well as the large cap portions of the MoA Balanced Fund.
Nationwide Retirement Solutions Appoints 401(k) Market Leaders
Nationwide Retirement Solutions has named Steve Ebert as western divisional vice president and appointed Carah Brody to assume additional leadership responsibility for the company’s Emerging Markets operations, project management and business transformation.
The Emerging Markets division serves advisor-sold 401(k) plans under $25 million in assets.
Ebert, whose most recent position at Nationwide was leading sales for the not-for-profit sector over $25 million in assets, will now be responsible for leading the western region of wholesalers in the advisor-sold under $25 million market. He will report to Kevin Devine, vice president for emerging markets sales.
“Steve is a proven leader with over half of his career spent leading teams in sales, sales operations, consulting, and relationship management,” said Devine. “His extensive sales experience covering all markets [corporate, not-for-profit and government] will be a tremendous asset to our team.”
Brody, an existing leader on the Retirement Solutions senior leadership team, will now include Emerging Markets operations, project management and business transformation within her business operations organization.
“Bringing Emerging Markets support together under Carah’s direction streamlines leadership, oversight and decision making so we can further accelerate our growth in this market that is critical to our business,” said Eric Stevenson, president of Nationwide Retirement Solutions. “Carah’s and Steve’s new opportunities show Nationwide’s commitment to developing talent and demonstrate our team’s strong leadership bench to serve our clients with extraordinary care.”
Savvy Advisors Welcomes Wealth Managers
Savvy Advisors Inc., a registered investment advisor (RIA) affiliated with Savvy Wealth, Inc., announced the hiring of six new wealth managers: Brad Morgan, Alex Austin, Brian Boswell, Colin Farr, J. Nick McLaughlin; and Michaela Sullivan.
Morgan joins Savvy from Mariner Wealth Advisors, where his team managed more than $300 million in client assets. He specializes in serving current and former Procter & Gamble (P&G) employees and helping them navigate the complexities of the company’s unique compensation and retirement options.
Prior to his decade-long tenure as an advisor, Morgan was a senior engineer at P&G, and comes from a multi-generational P&G family.
“Savvy is truly a client-first advisory firm, and I’m thrilled to be a part of the talented team that’s forging the future of wealth management,” said Morgan. “Savvy enables me to excel in guiding my clients through myriad complex financial decisions.”
Based in Denver, Farr and Sullivan join Savvy as a team after departing from Charles Schwab where both held the title of vice president and financial consultant. Farr spent his last 14 years at Schwab, while Sullivan has spent her whole nine-year career there. Focusing on serving individuals and families with generational wealth, the duo joined Savvy to spend more time with clients and help them build tax-optimized, personalized financial plans and investment portfolios.
With nearly 20 years of experience in financial services, Austin, who has recently relocated to Michigan, has moved his practice to Savvy after spending more than three years as financial planner and lead advisor at Insight Wealth Strategies. He specializes in working with clients who are in the accumulation stage of their lives and are seeking professional guidance in financial planning, retirement planning and investment management.
Formerly of LPL Financial, Schwab and, most recently, Oakwell Private Wealth Management, the Austin, Texas-based Boswell has been an advisor for nearly two decades. He serves a niche clientele of female physicians and business owners and says he chose Savvy for its ability to help him better market his services to targeted prospects. Additionally, he plans to build out his retirement plan advisory business as he believes it is an underserved market for business owners who need help managing corporate 401(k) plans.
McLaughlin joined Savvy in search of opportunities to provide his clients with a more tech-forward experience. With nearly 25 years of time spent in private wealth management, McLaughlin serves a client base that is largely made up of Millennials and Gen Xers who are still building their net worth. Serving as the director of fundraising at Wiseburn Education Foundation, he is passionate about educational programs in his community.
“By continuing to grow our team of advisors, Savvy is increasing our opportunity to deliver an outstanding experience to clients nationwide. We take that challenge very seriously,” said Ritik Malhotra, founder and CEO of Savvy Wealth. “The growth of our RIA in just two years has been staggering. I’m energized by our ability to deploy AI technology and support services that independent advisors need to dramatically expand their businesses.”
Investments & Wealth Institute Launches Advisor-Focused Educational Platforms
The Investments & Wealth Institute—a professional association, education provider and standards organization for the financial advice industry—has launched two new offerings this month, accessible through its Academy online learning platform:
- Visual Insights – a monthly, interactive short-form educational content series that addresses complex topics related to education, investment, retirement, estate and tax planning—specifically designed for advisors to reference during client conversations and to aid in client understanding.
- Strategic Planning for Business Owners–an online, asynchronous education program focused on addressing the financial planning needs of entrepreneurs, small business owners, and aspiring business leaders—for advisors to help this client segment make better and smarter financial decisions at all stages of the business lifecycle.
Developed in partnership with visiWealth, an advice engagement company, Visual Insights is a complimentary member benefit from the Investments & Wealth Institute, allowing members to access new courses on a monthly basis via the Investments & Wealth Institute Academy online learning platform. Each nano course can be completed in as little as 10-15 minutes.
The Visual Insights course is a benefit only available to Institute members. The first course, which examines the “4% Rule” launched on July 18. Advisors can find a preview of the course here.
Other tentative topics scheduled for released throughout the remainder of 2024 as part of the Visual Insights series include:
- 529 College Savings Plan to Roth IRA Rollover Considerations
- Balancing College and Retirement Planning Qualitatively
- How the Saving on a Valuable Education (SAVE) Student Loan Repayment Plan Works
The Strategic Planning for Business Owners course, eligible for five hours of Institute certification and CFP continuing education (CE) credit, addresses:
- Differences in Taxation Among Business Entity Types – Explores the distinct tax implications associated with different business structures, including clarity on how entity selection affects tax obligations, opportunities for tax savings, and compliance requirements.
- Reporting Obligations Under the Corporate Transparency Act – Reviews the Corporate Transparency Act and its potential impact on a client’s business. Addresses reporting obligations, compliance deadlines, and the importance of maintaining transparency in business operations to avoid legal repercussions.
- Estate and Business Succession Planning Considerations – Delves into the importance of succession planning, methods for business valuation, and strategies to ensure a smooth transition and continuity.
SEE ALSO:
- Corporate Roundup: PensionBee Expands to U.S., JULY Acquires TPA
- Corporate Roundup: PCS Retirement Adds Leaders to Bolster Cybersecurity, Cetera Welcomes Advisors
- Corporate Roundup: Netchex Launches 401(k) Platform, 401GO Unveils Mobile App