Products February 27, 2019

BoA to Rebrand Sponsor Services as Bank of America

Plan participants will be presented with the Merrill brand. 

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Having started to update its brand last November, Bank of America has now announced it will be presenting retirement plan sponsors with the Bank of America brand and participants with the Merrill brand.

The new positioning will be supported by a multiyear advertising campaign featuring clients, communities and partners. The first phase premiered last November and the second phase launched in early February 2019 through a series of local print advertisements in the company’s 92 consolidated U.S. markets. The ads feature the Bank of America president in each market asking, “What would you like the power to do?”

Bank of America will remain the company’s enterprise brand. Merrill will serve as the sub-brand for its investing and wealth management offerings. Merrill Edge Self-Directed, Merrill Guided Investment, Merrill Lynch Wealth Management and Merrill Private Wealth Management will transition to the Merrill sub-brand. BoA Securities will represent its institutional broker/dealer businesses.

“The campaign will represent a significant investment in our wealth management business and in our advisers, bringing more visibility to Merrill and celebrating its unique heritage by conveying a clear understanding of our clients’ changing needs and preferences and the value of providing advice and guidance that evolves over time as they lives change,” BoA said in a statement.

Data & Research February 27, 2019

IRA Owners Who Interact with Advisers Most Likely to Make Regular Contributions

Among those who make ongoing contributions, 53% were approached by a financial services company or professional to set it up.

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Owners of individual retirement accounts (IRAs) who interact with an adviser or financial services company are more likely to make regular contributions to their account, according to a survey by the LIMRA Secure Retirement Institute (LIMRA SRI). Only 34% of IRA owners currently make regular contributions to their account.

Among those who are making regular contributions, 53% were approached by a financial services professional or company to set that up.

Only 34% of Americans think they are knowledgeable about IRAs. Forty-two percent of men say they are knowledgeable about IRAs, but only 27% of women say the same. Only 41% of Americans own either a traditional or Roth IRA—with 32% owning a traditional IRA, 19% owning a Roth and 9% owning both.

Among those who do not own an IRA, 46% say it is because they do not understand enough about them.

The survey found that older Americans are more likely to own traditional IRAs. Forty-eight percent of the Silent Generation, those above the age of 73, own a traditional IRA, compared to only 30% of Boomers, Gen Xers and Millennials.

Ownership of Roth IRAs is much more level across age groups, with 19% of Boomers, 19% of Gen Xers, 18% of Millennials and 16% of the Silent Generation, owning a Roth IRA. Forty-three percent of these consumers say they bought a Roth IRA on the recommendation of their financial adviser, and 30% said they bought a Roth IRA to have a mix of pre- and post-tax retirement savings.

In contrast, only 23% of those owning a traditional IRA said they did so on the recommendation of their adviser.

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