Deals & People December 28, 2009

Adviser Team Leaves MSSB to Join Regional Firm

Capital Guardian, LLC, added The Locke-Cassells Group to its Charlotte, North Carolina, office, the company said.
Reported by

James “Jim” Locke and Bryan Cassells of The Locke-Cassells Group left Morgan Stanley Smith Barney December 11 to join the regional investment brokerage firm, according to an announcement.

Locke worked at Morgan Stanley for more than 18 years. While at Morgan Stanley, he met Cassells and formed The Locke-Cassells Group. The two went to Legg Mason, which was purchased by Smith Barney, which was then acquired by Morgan Stanley.

“The managing partners [at Capital Guardian] are entrepreneurs and have experience as financial advisers,” said Cassells, in the announcement. “They understand that the customer comes first. I love the open architecture platform, which means that we can do business with any company and aren’t pressured to sell proprietary products. Big firms try to control everything.”

Locke and Cassells join Marc Perkins, Don Bergeron, and Chris Misenhelder, all of whom joined the office in the last six months from wirehouse firms. The Charlotte office opened in June and is one of 17 offices in North Carolina, Florida, and Tennessee. 

Data & Research December 28, 2009

Most Small-Business Owners Don't Use Financial Adviser

The Discover Small Business Watch survey for December found that 62% of small-business owners report having a financial plan for their retirement
Reported by

That leaves a third of respondents without a financial plan for their retirement (and 5% said they are unsure), according to a press release of the results.

Fifty-six percent of small-business owners indicated they make their own investment decisions, and a little more than a third (35%) use a financial planner or other investment professional. When asked if they have financial planning assistance through a spouse’s employer, 84% of owners said they do not, 13% said they do, and 4% are not sure.

Sixty-three percent said it is “somewhat or very likely” they will have enough saved to last through their retirement, while 25% indicated it is “not very likely,” and 7% reported it is “not at all likely.”

When asked at what age they plan to retire, only 13% said before age 60; 28% said between ages 60 and 65; 18 said between ages 65 and 70; and 9% will retire past 70. Thirty percent indicated they do not plan to retire.

The press release said more than half (52%) of owners have an IRA account, and 29% have a Keogh, Solo 401(k), or a Simplified Employee Pension plan. Nearly three in four small-business owners (74%) reported the recession has reduced their retirement savings, while 19% said the recession had no impact, and 6% saw their retirement savings increase.

Of those owners who said their retirement savings have gone down:

  • 12% saw a decrease of up to 10%,
  •  24% saw a decrease of 10% to 20%,
  • 17% saw a decrease of 20% to 30%,
  • 24% saw a decrease of 30% to 50%,
  • 19% saw a decrease of more than 50%, and
  • 5% are not sure.

Twenty-three percent of survey respondents said they will eventually close their businesses, 19% will transfer ownership to a family member, 13% want to sell, 6% will hire someone else to run it, and 3% are not sure. However, 36% indicated no future plans for their businesses as they do not plan to retire.

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