RCAP Holdings LLC, a new entrant in the retail financial services industry, is launching an education campaign designed to compel the mass affluent to work wtih financial advisors.
RCAP Holdings, a holding company for real estate and others assets managed by Nicholas Schorsch and a team of managers, recently bought First Allied Holdings Inc., an independent retail financial services firm.
An education campaign is being directed at the mass affluent, those with $300,000 to $1.5 million in net worth. The campaign is designed to highlight the shortfall that the mass affluent are likely to face in their income for retirement, according to RCAP.
Schorsch announced the plans for the education effort at a recent national conference for the firm. The campaign will precede a national survey to determine the durability of retirees’ income, Schorsch says.
The campaign will include cable television advertisements and communication on social media to highlight the need for a durable income for retirement.
“Everybody wants to do what the big endowments do as far as investments are concerned, but they have not had the means,” Schorsch says. Schorsch wants to foster the creation of alternative investment products that have minimum investments of $2,500 or $5,000 to help attract the investments of the mass affluent.
“This group either wants a new advisor or wants more information from their advisor,” adds Schorsch. RCAP wants to prompt members of the mass affluent population to search out advisors and ask for new products to create a durable income in retirement.
The acquisition of First Allied, with $32 billion in assets across 300,000 clients and 1,500 financial advisors, is part of the company’s strategy to bring the mass affluent back to the financial advisory community, according to RCAP.