OneDigital, Creative Planning Announce Texas Acquisitions

Both firms made additions to expand their respective retirement plan and wealth management footprints in the state.

Both OneDigital Investment Advisors and Creative Planning announced retirement plan and wealth advisory acquisitions in Texas this week, aiming to reach a wider market in the region.

OneDigital Brings On Houston-Based Legacy

OneDigital Investment Advisors, a wholly owned subsidiary of Digital Insurance LLC, known as OneDigital, announced on Tuesday the acquisition of Houston-based retirement plan and wealth manager Legacy Asset Management Inc..

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The full Legacy team will maintain its direct service to clients, transferring more than 100 retirement plan clients, 200 individual wealth management accounts and more than $500 million in assets to OneDigital’s platform, which totals more than $100 billion in assets, according to the announcement.

Established in 1998 by CEO and President Joe Birkofer, Legacy specializes in managing company retirement plans and assisting employees in retiring through financial planning and strategies for retirement income.

“We know the workplace is the nucleus of America’s personal wealth creation,” said Birkofer in a statement. “Legacy has played a part in the delivery of financial wellness that leads to secure retirements over the past quarter century. Our partnership with OneDigital ensures that our clients will be at the forefront of wealth creation as we continue to grow.”

Legacy serves clients throughout Texas and in other states, working with owner-operated companies, professional service groups, high-net-worth individuals and not-for-profit clients.

“Giving us a strong foothold in the wealth management and retirement services industry in Texas, a partnership with Legacy demonstrates our commitment to add value to our south-central clients by providing a full suite of offerings to best serve their needs,” said Kelley Snook, OneDigital’s senior vice president of retirement and wealth, in a statement.

OneDigital’s South Central region, covering Arkansas, Oklahoma and Texas, works with more than 2,500 clients, including financial services, employee benefits, HR consulting, property and casualty insurance and PEO solutions.

Creative Planning Adds Wealth Firm

Meanwhile, Creative Planning LLC announced the addition of ML&R Wealth Management LLC, with the transaction finalized on April 1. The terms include 18 ML&R employees officially joining the firm.

 The individual wealth and retirement plan advisory with offices located in Austin and Round Rock, Texas, broadens Creative Planning’s footprint in Texas and advances the firm’s objective of having local advisers in every major metropolitan market, according to the announcement.

“We are pleased to welcome ML&R Wealth Management and their expert team into the Creative Planning fold,” said Peter Mallouk, Creative Planning’s CEO, in a statement. “They’ve built a strong reputation as thought leaders, as well as a presence in the Central Texas community.”

ML&R Wealth Management provides services in investment management, financial planning and risk mitigation. The firm’s assets under management were $2.2 billion as of December 31, 2023.

“Joining forces with Creative Planning brings a comprehensive view of finances along with cutting edge technology and services,” said Stuart Smith, lead partner in ML&R Wealth Management, in a statement. “We’re thrilled to offer these services to the more than 3,000 client accounts that we manage, as well as our expertise and services into Creative Planning’s broader ecosystem.”

‘Magic Number’ for Retirement Hits All-Time High

Northwestern Mutual finds Americans now target $1.46 million for retirement, while a separate Lincoln Financial study shows inflation as consumers’ top concern.

Americans’ view of the price of retirement has gone up significantly in recent years, with everyday costs creating additional financial strain, according to research reports released Tuesday.

According to a survey of 4,588 U.S. adults conducted in January by Northwestern Mutual and the Harris Poll, the average “magic number” savers target for retirement has hit a high of $1.46 million, 15% higher than last year’s figure and a whopping 53% higher than 2020. Current retirement savings reported by the cohort, however, fell to an average of $88,400 in 2024, as compared with $89,300 in 2023, according to the survey.

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“In 2023, the soaring cost of eggs in the grocery store symbolized inflation in America. In 2024, it’s nest eggs,” said Aditi Javeri Gokhale, chief strategy officer, president of retail investments and head of institutional investments at Northwestern Mutual, in a statement. “People’s ’magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider. Inflation is expanding our expectations for retirement savings and putting the pressure on to plan and stay disciplined.”

People’s retirement expectations have increased substantially since 2020, according to Northwestern Mutual, with the annual breakdown below:

2024

2023

2022

2021

2020

Amount expected to
need to retire comfortably

$1.46M

$1.27M

$1.25M

$1.05M

$951,000

 

Millennials have the highest expectations for what they need to enjoy a comfortable retirement at $1.65 million; Generation Z savers came in second at $1.63 million; Generation X earmarked $1.56 million; and Baby Boomers had the lowest expectation at $990,000. High-net-worth individuals, designated as people with at least $1 million in assets, are hoping to save an average of $3.93 million to retire comfortably.

Meanwhile, the decline in average retirement savings as compared to “magic number” expectations means a widening gap between actual savings and retirement goals, according to Northwestern Mutual.

2024

2023

2022

2021

2020

Amount saved for retirement currently

$88,400

$89,300

$86,900

$98,800

$87,500

Gap between retirement goal and current savings

$1.37M

$1.18M

$1.16M

$951,000

$864,000

Inflation Top Financial Concern

Separate research released by Lincoln Financial Group on Tuesday reiterated the concern among consumers of inflation’s impact on everyday spending and saving. The firm’s survey of 1,031 U.S. adults found inflation ranked as the top financial concern for 66% of respondents.

Two concerns tied for second most common response  at 59%: worries about having enough income in retirement and about whether income would keep up with the rising cost of living. The fourth-ranked concern was supporting oneself or one’s family due to a disability or chronic illness (51%).

Generationally, Lincoln Financial’s 2024 Financial Concerns Report, which it released in April because it is Financial Literacy Month, found differences, including:

  • Generation X was most concerned with having enough income in retirement (64%);
  • Millennials were the most concerned generation overall, particularly when it came to finding affordable housing (52%) and paying for childcare (37%); and
  • Baby Boomers were the only generation to cite “protecting myself against identity theft, cybersecurity, fraud, etc.” in their top three concerns (54%).

When it comes to trying to solve for financial concerns, Lincoln Financial found that consumers tend to focus on topics such as affording the cost of living, as opposed to seeking retirement saving products or income solutions. Survey respondents, for instance, were most likely to discuss or research ways to address paying monthly bills (81%), inflation (77%), paying for education expenses (77%), paying off or reducing debt (76%) and finding affordable housing (75%).

Lincoln did not immediately respond to a request for the percent of respondents who listed researching or discussing retirement solutions or insurance products.

Silver Tsunami

In publishing its survey, Northwestern Mutual noted the respondents’ concern about retirement preparedness as America faces the “silver tsunami” of retirees amid Peak 65, when an estimated 11,000 American will turn 65 every day through 2027.

According to the firm’s “2024 Planning & Progress Study,” just half of Boomers+ (49%) and Gen X (48%) believe they will be financially prepared when retirement comes. Meanwhile, only 30% of Americans noted having a plan to minimize the taxes they pay on their retirement savings which means most have failed to identify a potential shortfall.

“Putting money into a 401(k) may not be enough to retire comfortably if the financial plan doesn’t address the impact of taxes on retirement income,” said Javeri Gokhale. “Most people don’t realize that their retirement income may be taxed about 20% or 30% when they withdraw and spend it. When they recognize the impact, it’s often too late for them to adjust.”

Correction: fixes error in company name throughout.

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