401(k) Real Talk Episode 213: October 21, 2026
Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, contributing editor for Wealth Management’s RPA channel, reviews all of last week’s industry news and selects the five most important/interesting stories.
Worth Reading:
Read the full raw transcript below:
Greetings & a warm welcome to this week’s edition of 401k Real Talk. This is Fred Barstein contributing editor at WealthManagement’s RPA omnichannel and CEO at TRAU, TPSU & 401kTV – I review all of this week’s stories and select the most important and interesting ones providing open honest and candid discussion you will not get anyway else. So let’s get real!
FIRST STORY
Contrary to a Devoe report of a downturn in advisor M&A activity in Q3, Marshberry is reporting a record number of deals that could top 400 in 2026. YTD, Marsh Berry reported that there were 294 deals which is the highest on record.
PE buyers with 72% of the transactions continue to dominate led by Wealth Enhancement Group, Hightower and Carson. Larger RIAs are attracting more attention with 17% of the deal over $5bn AUA.
Devoe suggested that demand was waning due to market volatility and uncertainty but the Marsh Berry report indicates valuations will continue to be robust.
Advisors are driven to sell for succession planning and to accelerate growth which requires expanded capabilities and investments in tech and talent.
Meanwhile, insurance brokerages are backing off buying RPAs with wealth firms filling in looking to leverage aging participants that need retirement income planning.
Next story:
There seems to be a lemmings call to CITs driven by cost savings but there are major differences from mutual funds that few advisors and even fewer plan sponsors understand. Not only are there different regulators, but the trustee must act as a fiduciary and manage conflicts. The realties are quite different.
Will CITs be the next target of lawsuits? The DOL recently filed suit and is actively investigating. Advisors need to educate clients about the value and challenges with CITs in plain language as these investments grow.
NEXT STORY
The real value of managed accounts is their ability to provide personalized investments strategies but more participant data is needed which requires engagement according to a number of experts. Results prove the theory.
Along with age, salary and other data available from RKs, advisors need to look at risk tolerance and the entire household as well as outside assets and income along with spending goals in retirement. Managed accounts are a more elegant way to offer retirement income as participants near retirement.
Along with engagement, advisors need to use plain language putting themselves in their client’s position.
NEXT STORY
There are 1.4 m insurance brokers and professionals many working with small business owners but few are offering retirement plans even as the market explodes due to state mandates.
An insurance professional advises that brokers working with business owners should also offer retirement plans as they look to reduce the number of advisors that they work with. These professionals can leverage the trust they have built as the current crop of RPAs will not be able to handle the growing demand.
FINALLY
The “butterfly effect” introduced by MIT meteorologist Edward Lorenz postulates that small events that are part of an integrated ecosystem could have large effects. He claimed that the flap of a butterfly’s wings in Brazil could set off a chain of atmospheric changes that eventually causes a tornado in Texas weeks later.
Read my recent WealthManagement.com/RPA column about how the advent of state mandates is causing tremendous change within the defined contribution industry beyond the explosion of plan formation.
FINISH
So those were the most important stories from the past week. I listed a few others that are worth reading covering:
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Convergence and AI top broker/dealers’ concerns
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Lessons learned from DB plans use of private markets
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Issues with the convergence of wealth and retirement
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Lessons learned from YouTuber with 220,000 subscribers
Please let me know if I missed anything or if you would like to comment. Otherwise I look forward to speaking to you next week on 401k Real Talk.
