Interview: Brad McRae II, General

Think rationally

The pandemic has been challenging for families but it has also been a learning experience

How does a firm like Edward Jones help people? We help people think rationally, which means they use facts to make informed decisions. It’s our job as a financial adviser to provide advice. We must give enough context and information for people to feel empowered. It has been a challenging time for many families but it has also been a learning experience for a lot of people, where they see the potential of investments for their families.

For most people, it is starting with the foundation of viewing it as a protection plan and having emergency cash or liquid savings. It’s important for families to have that foundation and to be prepared for the unexpected through a stake plan or a life insurance plan. From there, they can start building layers, whether that is saving for retirement, college education or the purchase of a home or business. This past year, we learned that those who have a solid foundation are able to propel their goals and their plan. Those who were not able to prioritize that in the past are now seeing the importance of doing so.

How has retirement planning become more dynamic as a result of the pandemic? Retirement planning is more dynamic than ever before. This can be attributed to the average length or retirement triplicating in less than a century. That’s a big deal. Many people spend so much time preparing for that stage that they spend less time thinking about where they are going to be and what they will be doing when they do retire. Before the pandemic, the goal for many was to travel. Now, people have had to readjust their expectations around what retirement will look like, whether it will be working part time, volunteering, or spending time with their families.

What has the landscape looked like regarding investment opportunities and taking risks? It’s subjective and relative because client situations are unique. Those who were comfortable with taking more risks were able to take advantage of the market dropping, at one point, over 30% over the course of a few weeks. Where appropriate, our clients saw the opportunity to invest in companies or investments with lower prices with the goal of collecting those shares over time.

What are the firm’s main near-term goals? We think that the growth is evergreen. We would like to grow by at least 18 new financial advisers. The impact that will have on the community will equate to thousands of families being served in the future. We need to have a larger, deeper market share as people are relocating.

Brad McRae II

General Partner & Regional Leader, Raleigh – Edward Jones

( ) Association (SBA) PPP loans had businesses looking for advice on how to obtain these lifelines, both in terms of compliance and speed. The surge in demand for such services is reflected in workforce numbers. In February 2021, the region had a total 2,548 employees working in accounting firms, a 7.6% increase on February 2019 numbers.

The same observation can be made on the financial planning side. In 2020, the aggregate number of licensed professionals, Series 7, fully licensed brokers and total number of employees reached 3,919, a nearly 3% increase compared to 2018’s 3,811 professionals.

On the insurance front, the Triangle’s Top 25 property and casualty insurance agencies and companies have seen the number of agents increase from 955 in 2017 to 1,047 in 2021, a nearly 10% gain. Moreover, the country’s response to the pandemic, between the Coronavirus Aid, Relief, and Economic Security (CARES) Act during the Trump presidency and President Joe Biden’s American Rescue Plan, has not only provided financial aid for all eligible businesses, it has also provided financial incentives to 14 states with the aim of expanding Medicaid eligibility for low-income adults. The measure was included considering that people below the federal poverty level have no access to Medicaid or marketplace coverage in the considered states. North Carolina is among the list of states that have yet to implement a Medicare coverage expansion. Raleigh-based advocacy group Care4Carolina estimated that such a measure would translate into 10,194 new jobs, $27 million in new county revenue and $1.85 billion in new business activity in the Triangle.

In terms of marketplace players, UnitedHealthcare and Oscar joined the North Carolina health insurance landscape in 2021, while AmeriHealth and Friday Health Plans have announced they will be setting up a North Carolina foothold in 2022. On the consumer side of the equation, 535,803 people were enrolled in private individual plans through North Carolina’s exchange in 2021, a 6% increase to 2020’s 505,275 people.

Wealth management The pandemic has proved to be an equal-opportunity crisis, impacting individuals at all levels of wealth, and leading to related decision-making. For high-net-worth individuals, that meant leaning more heavily toward long-term planning, nurtured by their elevated concerns around legacy planning and, in some cases, to accelerate retirement plans or draft near-term retirement plans. To attract these clients, firms need visibility, said Robin Hogan, complex manager and executive director at Morgan Stanley Raleigh Complex. “An increasing number of people are moving into this area at an astonishing rate. People want to be here. Morgan Stanley is visible on LinkedIn, Facebook, Twitter and Morgan Stanley websites. There are many ways to connect and to locate the right adviser for your investment needs. Our advisers are fulfilling the need for impact investing. Knowledge in planning, investing and caring for clients’ financial wellbeing is what people are seeking and which our financial advisers provide.”

While retirement plans often target a specific number, wealth management firms advise on diversifying assets, especially from a taxation lens — 401(k)s, Roth IRAs, brokerage accounts, and bonds are all taxed differently. At 59-and-a-half-years-old, withdrawals from either Roth IRAs or 401(k) become tax-free. While traditional IRAs and 401(k)s, along with CDs and bonds, are taxed

Barry Cobb

Management Committee Member – Yates, McLamb & Weyher LLP

One of the things that we have yet to see in litigation is how immunity legislation that has been enacted for businesses and healthcare during the pandemic will affect our business. Many times, our business lags two or three years behind what’s going on in the economy and the wider world because personal injury and wrongful death cases have a two- to three-year statute of limitations period. There has been some sweeping immunity legislation that has been passed to cover things that happened during or because of COVID-19 and we will need to continue gauging how those provisions affect our clients and our own work.