A little stock market uncertainty isn’t going to rattle LPL.

The country’s largest independent broker-dealer saw its stock price soar 13% over the past week, driven by a better-than-expected earnings report and optimistic remarks from the company’s CEO about the purchase of Commonwealth Financial Network. In fact, shares have climbed some 23% over the past month after the deal was announced at the end of March. But maintaining the San Diego-based brokerage’s recent success will hinge on a successful campaign to bring on the almost 3,000 Commonwealth advisors in what will become the largest acquisition by assets in LPL’s history.

“Let’s kind of hit this thing head-on,” CEO Richard Steinmeier said on an earnings call with analysts last week. “There’s been ample chatter in the marketplace around the deal, but that really speaks to the importance of the Commonwealth franchise, and quite honestly, the quality of their advisors. It’s exactly what we expected to see with a franchise of this quality.”

Which One’s the Pinot?

Some Commonwealth advisors are wary about joining LPL, and rivals — like Raymond James, Cetera, Wells Fargo, Morgan Stanley and Ameriprise — have all reportedly floated lucrative compensation packages to lure those advisors onto competing platforms. Steinmeier reassured investors that LPL is on track to meet its retention target, which would transition 90% of Commonwealth advisors.

“Commonwealth is a very tight-knit community that oftentimes feels far more like a family,” Steinmeier said. He told analysts he has talked with dozens of Commonwealth advisors, some on a “rain-soaked” bike ride in Scottsdale, Arizona, others at a Sunday lunch in Sacramento, and still more at a blind wine-tasting (location undisclosed). “We are deeply committed to keeping that community intact, safeguarding their experience, their cultures, their capabilities,” he said.

Put That in Your Pipe. LPL increased its advisory and brokerage assets by 25% year over year, thanks to higher revenue on commission-based products. Advisor headcount also ticked up 2% to 29,493 over the same period. But it’s not just a stellar earning report and the monumental Commonwealth deal causing all the commotion:

• LPL acquired institutional clients in recent months, including WinTrust and Prudential Advisors, adding over $80 billion in M&A assets.
• New-York based Atria Wealth Solutions will add an additional 2,400 advisors to the platform over the next few months.

“Look at what we have in front of us, specifically right now, on beginning the Atria conversions, and specifically getting ready for Commonwealth,” LPL CFO Matthew Audette said on the call. “The recruiting pipeline continues to be quite large.”

Naomi Whitehead is the oldest living American at 114 years old, and we’d like to take a peek at her retirement plan.

Reaching 100 is a remarkable feat, but it’s not one most Americans are eager to achieve. More than 70% of Americans say they don’t want to hit the century mark, fearing they won’t be able to afford the cost of longevity, according to a new report from the Nationwide Retirement Institute. However, living longer is becoming increasingly common thanks to medical advances, and for financial advisors, that means preparing clients not just for 15–20 years of retirement — but potentially 35 years or more.

“Most clients tell me, ‘There is no way I will live that long,’” said Jessica McNamee, an advisor with Sirius Wealth Strategies. “I find their certainty fascinating.”

Are We in a Blue Zone?

The number of American centenarians is expected to quadruple over the next 30 years, per the US Census Bureau. That reality is unsettling for many who fear their bank accounts will run out before they do:

• Some 40% of non-retired individuals plan to delay retirement due to inflation, per the NRI report.
• Even for those who reach 100 with savings, one in five healthy couples will outlive their nest egg unless they adjust their money-management strategy.

The NRI highlighted annuities, long-term care insurance plans, and lifetime income solutions within employer-sponsored retirement plans as enablers of confidence, independence, and dignity for clients.

Financial Caregiving. Even with money in place, managing it is another challenge. Increasingly, that responsibility falls to younger family members acting as financial caregivers. Over 40% of clients at Wells Fargo, Morgan Stanley, and Ameriprise fit this role, according to market researcher Hearts & Wallets. “It starts off with paying bills, then quickly flows into managing income flows, and segues into handling taxes and insurance,” said Laura Varas, Hearts & Wallets CEO.

More than half of financial caregivers are open to paying for professional help managing an aging loved one’s finances. “It could be a good way for advisors to build business,” Varas told Advisor Upside, “but it’s also a massive and growing need for US households.”

The barbarians are at the gate to a $12 trillion industry.

Empower, one of the country’s largest retirement plan providers, is offering private market investments from the likes of Apollo, Franklin Templeton, and Goldman Sachs. The private equity, credit, and real estate allocations would sit inside collective investment trusts used in managed accounts for plans working with advisors, according to the firm. It’s the latest sign of private markets extending their reach well beyond their traditional clientele of wealthy families and institutions. On the retail front, similar strategies have already been worked into ETFs and interval funds.

Empower’s “profound move” will diversify 401(k) portfolios, Empower CEO Edmund Murphy III said in the company’s announcement Wednesday. But demand is a question. “If you ask participants or plan sponsors, they’re not demanding this,” said Fred Barstein, founder of The Retirement Advisor University. “But then again, they didn’t ask for target date funds.”

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