Page 10 - Investment Advisor June 2021

EDITOR’S NOTE

By Janet Levaux

Retirement, Recruiting in Focus

t’s been a momentous May, as we continue to emerge from Also in this issue, we’re pleased to introduce the final-
the coronavirus pandemic in so many ways and begin to ists for this year’s Asset Manager and Strategist of the Year
Itackle a number of issues. Awards, which we present annually in partnership with
In one of the biggest news developments of 2021, the House Envestnet | PMC. The program recognizes the top active man-
Ways and Means Committee unanimously passed the Securing agers in seven different categories. The 2021 winners will be
a Strong Retirement Act of 2021, or Secure Act 2.0, on May 5. announced in our July issue.
The proposed legislation aims to raise the required minimum In addition, I’d like to thank recruiters and industry experts
distribution age from 72 to 75, expand automatic enrollment Mindy and Louis Diamond for the insights they share in this
in retirement plans and enhance month’s cover story, which looks
403(b) plans. In this issue, we’re at the many changes happening
Our Washington Bureau Chief at broker-dealers, RIAs and other
Melanie Waddell highlights the pleased to introduce the firms. Their perspectives on the
details of Secure 2.0 in her Playing recent history of what’s happen-
Field column this month. For finalists for this year’s ing in the business are fascinating.
instance, retirement expert Ed Asset Manager and As Mindy explains: “The most
Slott says Congress should simply important driving factor in advi-
“kill lifetime RMDs.” Strategist of the Year sor movement today is advisors’
Overall, 80% of the people “take wanting freedom, flexibility and
the RMD amount or more because Awards, which we present control. Also, this is driving the
they need the money,” Slott said. way the industry has evolved —
“So telling them they don’t have annually in partnership and newer models are being born.
to take money they need doesn’t “The big firms are losing a lot of
do anybody any favors. It only with Envestnet | PMC. advisors who can’t get what they
helps the people who don’t need want where they are.”
the money, which means they probably have larger IRAs and We hope you enjoy reading our latest industry coverage and
they’ll be facing bigger tax bills later.” that you have a great start to summer of 2021. Thank you for
Darrow Wealth Management’s Kristin McKenna explains your continued support of this publication and of our sister
that “allowing individuals to save more for retirement is clear- website, ThinkAdvisor.
ly a good thing … the way the bill has proposed accommodating
that is likely to confuse many investors.”
And Leon LaBrecque of Sequoia Financial Group says: “We
now have another ‘donut hole’: I can do a ‘regular’ make-up
from 50 to 61, increase it from 62 through 64 and drop it back
by 65. … The drafters should just allow an enhanced makeup
for 62 and older.”
According to the Federal Reserve, the average 64-74 year
old “has only $358,000 saved for retirement (median is a scary
$126,000),” LaBrecque notes. “With inflation rearing its ugly GROUP EDITOR-IN-CHIEF
head, we need to save more and this helps.”

8 INVESTMENT ADVISOR JUNE 2021 | ThinkAdvisor.com