Empower Retirement Acquires Personal Capital

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Another big deal was announced Monday, one that reiterates an established trend in both industry consolidation and firms attempting to provide overall wealth management—from workplace retirement accounts to comprehensive household financial guidance.

Empower Retirement, the No. 2 player in the retirement plan record-keeper space behind Fidelity, has announced its acquisition of online registered investment advisor Personal Capital in a deal totaling $1 billion.

Far from being a merger of equals, Empower, which has more than 6,000 employees and administers $656 billion in assets for more than 9.7 million retirement plan participants, is a behemoth compared with Personal Capital, which currently manages $12 billion in client assets for just under 23,000 clients, according to its latest form ADV.

Principals, past and present, as well as pundits, welcomed the deal, many on social networks referring to it as an example of common sense

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Deloitte opens legal business services practice in U.S.

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Deloitte has opened a legal business services practice in the U.S., expanding a line of business it has offered abroad.

The new practice will offer legal management consulting and managed services to help legal departments, but Deloitte won’t be turning into a law firm. The firm emphasized that it won’t be practicing law or offering legal advice to clients.

The U.S. launch is part of Deloitte’s effort to expand legal services internationally. Other Big Four firms such as PwC, KPMG and EY have also been expanding their legal services abroad and to some extent in the U.S. Deloitte is also facing competition from Andersen Global, the revived Arthur Andersen network, which has expanded from tax services into legal services, striking deals with both tax and law firms around the world. Deloitte is targeting corporate legal departments, however, specifically chief legal officers, who can leverage Deloitte’s industry expertise, technology and presence

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How Much Money Do Celebrities Like Jerry Seinfeld and Ray Romano Make From Show Royalties?

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Hit series like Seinfeld, Everybody Loves Raymond, and Friends ended years ago but actors and producers continue to still make bank from reruns.

Matthew Broderick, Jerry Seinfeld and Larry David
Matthew Broderick, Jerry Seinfeld and Larry David |Al Pereira/WireImage

While celebrities like Jerry Seinfeld and Ray Romano reportedly draw a serious royalties paycheck from reruns, not every celebrity involved in a hit television series earns a sweet payout. For instance, the cast from the 1960s and 1970s smash-hit The Brady Bunch hasn’t seen much money from the endless reruns, according to GoBankingRates. Actor Eve Plumb, who played Jan Brady told OK Magazine she and other cast members haven’t made any money from the show in years.

Also, actor Richard Karn who played Al Borland on the sitcom Home Improvement said rerun money is nice, but not financially sustainable. “Every time the show gets bought around the world … you get a little percentage of that. …

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Why Californians dropping are private insurance to get taxpayer-funded treatment

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There’s an open secret among those who care for people with serious mental illnesses.

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Empower’s Personal Capital acquisition highlights convergence of wealth and retirement

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If we weren’t sure about the convergence of wealth and retirement, or the focus on serving and monetizing 401(k) and 403(b) plan participants, then Empower Retirement’s pending acquisition of Personal Capital gave us 1 billion reasons to believe.

Though some question the $1 billion price tag for a company with an estimated $50 million in earnings before interest, taxes, depreciation and amortization, Empower really had no choice. It needed to keep up with its main defined-contribution rivals, Fidelity and Vanguard, as well as with Charles Schwab, a giant in retail finance with a foothold in the DC space.

For Personal Capital, Empower provides easy access to 10 million potential clients.

“Growth in the wealth management business will not come from traditional marketing,” said Mark Bruno, managing director at Echelon Partners. “Wealth managers that add new clients, especially younger mass affluent investors, will be those that make it easy to do

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British bank NatWest swings to a 2nd-quarter loss of $1.7 billion as income tumbles and impairment charges soar

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Alison Lithgow wearing a suit and tie smiling and looking at the camera: RBS


© RBS
RBS

  • NatWest posted sharply lower profits last quarter as less income and a hefty impairment charge weighed on its business.
  • The British bank’s total income tumbled 34% year-on-year to £2.7 billion ($3.5 billion) and its impairment losses soared to over £2 billion, meaning it swung from a pre-tax profit of £1.7 billion ($2.2 billion) to a £1.3 billion ($1.7 billion) loss.
  • “Our performance in the first half of the year has been significantly impacted by the challenges and uncertainty our economy continues to face as a result of Covid-19,” CEO Alison Rose said in the earnings release.
  • NatWest’s net interest margin fell and its loan impairment rate soared, but it also shored up its finances, increasing both its liquidity coverage ratio and common equity tier one (CET1) ratio.
  • Visit Business Insider’s homepage for more stories.

NatWest suffered a sharp slump in second-quarter profits as pandemic-related lockdowns and travel

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Opinion | The financial relief plan has worked. But it shows the woeful state of unemployment insurance.

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Consequently, the expected household debt crisis has not materialized. Total credit card debt has fallen from $900 billion in March to $800 billion now, and fewer than 2 percent of accounts are past due, according to the Wall Street Journal. (Of course, shopping and dining out were impossible in many places.) As for mortgages, 30-day past-due accounts have spiked, according to CoreLogic, but “serious” delinquencies — 90 days past due or more — are at a 20-year low, as are foreclosure rates.

People are struggling; the poorest most of all. But it could have been far worse. This is as it should be. Government called on the people, essentially, to cease producing goods and services, and so it was up to government to shield them from financial disaster — in effect, to take individual and small business debt onto the national balance sheet.

There is no immediate issue of “moral

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A Financial Innovation That Could Accelerate The Carbon Transition

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Coal economics have passed the cost crossover point with renewables – 179 gigawatts (GW) of coal plants in the United States were more expensive to operate than replacing them with new local solar or wind energy in 2018. But even though opportunities abound for utilities to economically transition from existing coal to new renewables, annual coal plant retirement rates are closer to 10 GW.

When utilities and regulators fail to act upon this fundamental economic change, relentless consumer pressure will result, forcing utilities to adapt or risk losing customers.

An innovative new financial approach is accelerating the electric sector’s financial transition from coal to clean. “ Solar for coal swaps” could help refinance the 26 GW of

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Empower Retirement acquires Personal Capital in billion-dollar deal

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Empower Retirement, the Greenwood Village financial firm with its name on Mile High Stadium, has made a major acquisition to fill out its roster.

Courtesy of Empower Retirement

Ed Murphy

The company announced Monday that it would acquire Personal Capital, a digital wealth management firm, for up to $1 billion. The price includes $825 million on closing later this year and up to $175 million if Personal Capital can hit undisclosed growth targets.

The purchase will allow Empower plan participants and individual investors to obtain a more complete picture of their financial holdings, access digital personal finance tools, and receive customized advice, the company said.

Longer-term, the combination should allow Empower to retain more plan participants as customers after they retire.

“The acquisition of Personal Capital and the integration of their tools and capabilities into the Empower offering is designed to create a best-of-breed platform — powered by digital and

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