Deals & People October 1, 2024

Cheri Belski Joins LPL Financial as Head of Investment Solutions

The former head of product at T. Rowe Price will lead all major investment initiatives.

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LPL Financial LLC has appointed Cheri Belski as executive vice president and head of investment management solutions. Belski, with more than 25 years of experience, will lead major investment initiatives, including LPL Research, investment products, advisory platforms and the firm’s retirement partners business.

Belski previously served as global head of product at T. Rowe Price, where she directed the firm’s product development strategy, particularly in private markets. At LPL, she will focus on driving strategic goals and enhancing product differentiation to support the firm’s more than 23,000 advisers and almost 1,000 institutions.

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“We are thrilled to welcome Cheri to LPL,” Aneri Jambusaria, managing director of business and wealth solutions at LPL, said in a statement. “Her extensive experience and diverse background—spanning sales, product, client service, distribution and operations—make her the ideal leader to continue to evolve LPL’s investment solutions and innovative services that help advisers meet the increasingly diverse and sophisticated needs of advisers and their clients.”

Jambusaria added that Belski will oversee the growth of LPL’s model wealth portfolios, the introduction of 50 new alternative investment products by the end of 2025 and the continued development of the firm’s offerings.

Belski, who will be based in LPL’s Fort Mill, South Carolina, office, earned a bachelor’s degree in political science and Latin American studies from the University of Pittsburgh and an MBA in international business from Johns Hopkins University.

During the firm’s recent Focus 2024 event, LPL leaders introduced new products that will fall under Belski’s leadership. These include expanded access to low-volatility managers and strategies, with LPL now offering eight of the top largest exchange-traded-fund providers with no transaction fees. LPL Research also launched coverage of active ETFs to help advisers choose managers across different market environments.

Additionally, LPL announced 200 new separately managed accounts for its MWP platform, including 25 new fixed-income options, providing advisers with more customizable and cost-effective investment choices.

LPL continues to expand its alternative investment options, adding 12 new strategies such as hedge funds, drawdown, evergreen and tax deferral strategies, with plans to introduce 50 more by the end of 2025.

Data & Research October 1, 2024

Americans Are Calling for Policymaker Action on Social Security

Reports from HealthView and Transamerica show people want policymakers to work on shoring up Social Security now.

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As the U.S. election in November gets close, a pair of new reports, from HealthView Services and Transamerica, underscore the urgent need Americans feel for Social Security reform.

The white paper issued Tuesday by HealthView Services, a data and technology firm that provides health cost projections to financial firms and advisers, highlights the potential consequences of failing to address Social Security’s funding shortfall.

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If no changes are made, retirees could face a 21% reduction in benefits by the early 2030s, HealthView notes. For a mass-affluent couple 25 years away from retirement, that could result in a $908,000 loss in future Social Security benefits. An average-income couple just 10 years from retirement could see lifetime benefits reduced by $252,000.

But the type of fixes policymakers make will also matter. Whether through higher taxes or reduced benefits, substantial changes are likely to affect retirement planning for generations, according to the authors.

For instance, if policymakers raise the full retirement age to 68 from 67, it could lead to a mass-affluent couple retiring in 25 years losing $325,000 in benefits, while an average-income couple would face a $249,000 reduction.

If other options are taken, such as raising the payroll tax cap or taxing healthcare premiums, these would increase the financial burden on workers.

Meanwhile, lowering the cost-of-living adjustment by 0.5% annually, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, would also lower payments for future retirees. A mass-affluent couple retiring in 25 years could see a $287,000 reduction in lifetime benefits, while an average-income couple 10 years from retirement would lose nearly $100,000.

Another proposal some policymakers have suggested, reducing spousal benefits from 50% to 33%, would have minimal impact on Social Security’s overall funding, but could cost the lower-earning spouse in a mass-affluent couple nearly $250,000 over their lifetime, according to the firm.

“Congress will have to make hard choices that will reduce benefits or increase tax revenue for the program – both of which have a significant cost to future retirees,” said Ron Mastrogiovanni, CEO of HealthView Services, in a statement with the report.   

One proposed change would not affect mass-affluent or average income couples but would matter for high-income earners: eliminating the earnings cap on Social Security contributions for high-income earners. Under this plan, a couple earning $500,000 annually, 25 years from retirement, would pay an additional $252,000 into the system without receiving any extra benefits. According to modeling from the Society of Actuaries, this change could address 70% of Social Security’s funding shortfall, providing a significant boost to the program’s solvency.

The HealthView report draws on actuarial and government data, as well as 530 million medical claims.

In a separate report from the Transamerica Institute released Tuesday, a survey of more than 10,000 U.S. residents reveals that 62% of Americans consider addressing Social Security’s funding shortfalls a top priority for the president and Congress.

Across all demographic groups surveyed—spanning generations, employment status, race and ethnicity, gender, household income, urbanicity, military status, and LGBTQ+ status—there was a shared priority: addressing Social Security’s funding shortfall.

Other key concerns for the general American population include Medicare funding shortfalls (51%), making healthcare more affordable (49%), and ensuring workplace retirement savings options (44%).

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