Brooke Southall

Goldman will likely integrate w/ it's own offering.  Given that they don't custody 401(k)s it's hard to make the case that they will funnel assets into their own products through NextCapital.  The opportunity is bigger than asset management sales, it's about influencing the end client (employees) throughout their entire lifecycle and gaining access to data.

Goldman Sachs closes deal for NextCapital to extend a tentacle into the 401(k) market and yank out 'a thorn in the side of the retirement industry'

Goldman Sachs

401(k)

Goldman Sachs Asset Management

NextCapital

The days when RIAs were the outsiders at the 401(k) party are fast coming to a close. What's new is that the mass of 401(k) assets 
is getting critical at about $3 trillion; fiduciary advisors are getting appreciated; fat fees and questionable kickbacks are getting exposed and stepping out of line is getting dicier as the Department of Labor tightens the regulatory screws.

The old reasons why the 401(k) business is attractive are still in place: there are fresh assets pouring in every month and when employees leave jobs or retire, they produce rollovers that build up IRA accounts for financial advisors. The drawbacks of getting into the 401(k) business are still in place, too. Dealing with retirement assets is really a second line of business and it remains -- unless you overcharge with hidden fees -- a low margin business with high potential fiduciary liabilities.

Still, the outsourcers, infrastructure and accumulated knowledge for RIAs to capitalize on is growing daily and a the mega-shift of assets away from brokers is making the 401(k) business riskier and riskier -- to ignore.

401(k) Stories

The New York City bank now owns a unit that had slowing growth pre-deal but may face fresh headwinds carrying the baggage of its new owner.

Goldman Sachs closes deal for NextCapital to extend a tentacle into the 401(k) market and yank out 'a thorn in the side of the retirement industry'

Brian Murphy

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Goldman Sachs closes deal for NextCapital to extend a tentacle into the 401(k) market and yank out 'a thorn in the side of the retirement industry'

Brian Murphy

Related Moves

November 2, 2022 at 3:27 AM

November 1, 2022 at 4:03 AM

March 16, 2022 at 2:47 AM

March 5, 2021 at 1:16 AM

RIABiz Directory

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