COLLECTED WISDOM™ on Retirement Plan Advisor's Practice Management

Here is a collection of articles, commentary, insights and other information around issues dealing with a retirement plan advisor's practice management including growing your book, running your business, and best practices.

This archive contains not only the most current material on the topic, but also older items that are still relevant, provide background, perspective or are germane to the topic.

If you find a broken link or an items that you feel is outdate, irrelevant or no longer appropriate, please let us know.

Finalist Presentations Do's and Don'ts

Have you ever prepared extensively for a finalist presentation, only to find yourself and your team in second place? Panelists during day two of the NAPA 401k Summit reviewed what retirement plan advisors are missing in their preparation leading up to those meetings, and how they can win big in the next one.

Source: 401kspecialistmag.com, April 2024

Managing Fiduciary Conflicts in the Age of Convergence

In recent years, retirement plan advisers for Employee Retirement Security Act plans and advisers for wealth management clients have joined forces within the same firm. Among the many challenges involved with integrating these two practices is complying with the fiduciary and prohibited transactions of ERISA and section 4975 of the Internal Revenue Code when providing advisory services to clients. ERISA expert David Kaleda discusses what the DOL's proposed Retirement Security Rule may mean for retirement and wealth management firms.

Source: Planadviser.com, March 2024

Recordkeepers Enter a New Era

For retirement plan recordkeepers, the past few years have marked a significant transformation, set in motion by the dual forces of consolidation and the unyielding quest for innovation and scale. As the number of recordkeepers dwindles, those that remain are redefining what it means to be a recordkeeper in today's market.

Source: Captrust.com, March 2024

401k World: Retirement Plan and Wealth Advisement

According to surveying done by T. Rowe Price, 100% of large retirement plan advisories are now providing wealth management strategies to plan participants. According to some in the industry, that trend is likely to continue in coming years as participant wealth management needs grow. Offering both plan advisory and wealth management services makes sense from several perspectives, including higher profit margins than plan advisory work, according to the T. Rowe report.

Source: Planadviser.com, February 2024

One Year Later: SECURE 2.0 Impacts on Retirement Plan Advisors

As the retirement planning industry comes up on the first anniversary of the passage of SECURE 2.0, a new trends report from Escalent analyzes how plan advisors have taken advantage of the legislation. The "Retirement Plan Advisor Trends" report polled 503 defined contribution plan advisors with an active book of business of at least $5 million.

Source: 401kspecialistmag.com, December 2023

Adviser Voices: How to Structure a Retirement Plan Advisory

With the evolving role of advisory firms in handling increased responsibilities related to fiduciary duties and employee outcomes, a firm's organizational structure is crucial to allow for optimal results. Here, three plan advisers share their thoughts on how a team can be structured to effectively serve clients and grow its business.

Source: Planadviser.com, December 2023

Plan Advisers Will Play Key Role in Future of In-Plan Annuities: LIMRA

Plan advisers will play a key role in in-plan annuity options' trajectory in the next 12 months, according to research by trade group LIMRA. An estimated nine out of 10 defined contribution retirement plans do not offer participants an in-plan annuity option, according to LIMRA. That has been the case for years despite a push from insurance providers for in-plan options, but 2024 may finally be a tipping point, the insurance trade group wrote in its report.

Source: Planadviser.com, December 2023

100% of Large Retirement Plan Advisories Now Include Wealth Strategy, According to T. Rowe

There's no more holding out by large retirement plan advisory firms in offering a built-in wealth strategy for clients, according to researchers at T. Rowe Price. In the Retirement Leadership Forum 2021 Aggregator Survey, all advisers reported having a built-in wealth strategy to offer participants in the plan, said Michael Doshier, a senior defined contribution adviser strategist at T. Rowe Price.

Source: Planadviser.com, November 2023

Ten Questions for Advisers to Ask When Brand Building

In today's market, 86% of plan sponsors are willing to commit before meeting an adviser and instead are making their decision based on advisers' offline and online reputations, says Rebecca Hourihan, founder and CMO of 401k Marketing LLC, at the PLANADVISER National Conference. There she revealed the questions her firm asks clients when onboarding a marketing strategy.

Source: Planadviser.com, September 2023

401k Business Growth: Understanding Generational Shifts

Effective communication is key for growing your 401k business. However, not everyone has the same communication preferences. Each generation likes to receive and consume information differently. As you think about your business and who your ideal clients are, it's essential to consider which of the four main generations they belong to baby boomers, Gen X, millennials, and Gen Z.

Source: 401k-marketing.com, September 2023

Insights From the 2023 RIA Benchmarking Study

This year's Schwab's RIA Benchmarking Study highlights growth and business performance and how firms are investing in digital tools and workflows that will create greater efficiencies, increase productivity, and create capacity so firms can provide personalized services through the lens of their ideal client. More than 1,300 independent advisor firms representing over $1.7 trillion in AUM participated in this year's study.

Source: Schwab.com, July 2023

Best Practices for Scaling a Retirement Advisory Firm

The retirement plan adviser landscape needs newcomers who can both support and eventually replace the old guard, according to industry participants. But how can advisers best build their practices amid a tight labor market across many sectors in an industry that is both specialized and heavily regulated? Here are some best practices for growing a retirement advisory team in the right way.

Source: Planadviser.com, July 2023

The Good Old Days: Was the Pension Era Really as Good as Its Reputation?

Some in the retirement industry look back fondly on the days when company pensions guaranteed paychecks, but experts are not convinced the nostalgia is deserved. Experts point out the flaws in the often lauded 'pension past,' while discussing what the 401k present needs to be more impactful for more people.

Source: Planadviser.com, June 2023

Expanding the Reach of Your Practice With 403b Plans

If you currently work with 401k and profit-sharing plans, expanding the reach of your practice to serve 403b plans can uncover a whole new world of potential opportunities. The expertise and experience you have gained serving 401k plans can be fully leveraged to serve 403b plan sponsors and their employees.

Source: 401kspecialistmag.com, January 2023

The SEC Is 'Coming After' RIAs That Fail to Track Client Chats by Text, Whatsapp, and Social Media, Experts Say

The smartphone's advance took life one giant step forward for RIAs, but they can't fight the law of unintended consequences and it may already have won. Smartphones make our business and personal lives porously one. Yet from the SEC's perspective, no such blurred line exists, and every mobile chat with a client pertaining at all to business is subject to compliance.

Source: Riabiz.com, October 2022

Four Ways an Independent Recordkeeper Benefits an Advisor

Advisors have a primary choice between partnering with companies who sell insurance or investments and offer 401k plans as part of their financial services lineup and independent recordkeepers who tend to be local or regional specialists who focus on actively collaborating with financial and tax advisors to design and operate retirement plans tailored to their clients. This piece reviews four ways an independent recordkeeper can help you grow your retirement plan practice.

Source: Abgnational.com, October 2022

Are Your 401k Clients at Risk? Five Client Retention Strategies

Nearly 50% of plan sponsors are actively looking for a new advisor. It's been said that it costs seven times more to earn a new client than it does to retain a current one. As you implement your business plan, consider these five client retention strategies. These ideas could have a big impact on how your clients perceive the quality of your service, could increase loyalty, and even produce inbound referrals.

Source: 401k-marketing.com, September 2022

How Advisors Can Help Clients Invest Sustainably Outside of 401ks

This article is part of a series providing a framework for incorporating sustainable investing into your advisory practice. A previous article explored the limitations and opportunities of investing sustainably within employer-sponsored retirement plans such as 401ks. Advisors supporting clients in investing sustainably outside of these accounts may find more choice but also more complexity.

Source: Morningstar.com, August 2022

How Retirement Plan Advisors Can Lose Clients in a Flash

Building a book of retirement plan clients is tough work. Clients don't fall from trees and it can take months or years to land that potential client you have visited and called countless times. And it is easier to lose a client than it is to gain one. If you follow some of the steps outlined here, you can avoid losing your retirement plan clients.

Source: Jdsupra.com, August 2022

2021 Defined Contribution Consultant Research Study

This study shares insight on retirement trends from our latest survey of the nation's 32 leading consulting and advisory firms that provide services to more than 33,000 plan sponsor clients and report nearly $7.2T of assets under advisement. The study was conducted at the end of 2021 during the continued coronavirus pandemic. Recent years have presented unprecedented challenges, and the study finds the consulting and advisory community evolving their businesses to address both obstacles and new opportunities.

Source: Troweprice.com, June 2022

How to Handle the DOL's New IRA Rollover Rule

The rule requires written disclosures to your prospects and clients that outline the reason the rollover recommendation is in their best interest. The author poled the advisor community and received 25 detailed responses. He says that "at first it was bewildering because none of the disclosure forms or checklists looked like any of the others. But when I looked closer, there were some commonalities that I fit into a composite disclosure document that the profession can rally around. At the very least, it shows you the thinking of people who have put a lot of thought into this issue. I can offer an even dozen of observations from the responses."

Source: Advisorperspectives.com, June 2022

Time to Reset the Advisor-TPA Partnership

What should advisors be asking their TPAs? What should they be getting from them? What makes the difference between a good TPA and a bad one? And how can advisors and TPAs improve their working relationship and serve plan sponsors as a cohesive team? This panel discussion at the 2022 NAPA 401k Summit provides an interesting perspective on the relationship between TPAs and advisors, their work and connections, and the approach and mindset advisors follow. TPAs may find this information and insight useful and instructive.

Source: Asppa.org, April 2022

Adviser Industry Fee Pressures in Focus

Fee compression has impacted adviser revenue models for several years now, thanks to such forces as increasing automation, stiffer competition, and ongoing industry consolidation. Experts say these trends are set to continue throughout 2022, leaving forward-thinking advisers focused on protecting existing revenue and adding new revenue streams.

Source: Planadviser.com, February 2022

Four Trends to Boost Your 401k Practice in 2022

As we begin 2022, now is an opportune time to set yourself up for success in the coming year. Here are some hot industry trends you can expect to be front and center, as well as thoughts on how to leverage them to scale your practice while managing your client relationships and business more efficiently.

Source: Fiduciarydecisions.com, January 2022

Add Value by Helping Plan Sponsors Develop a Fiduciary Calendar

To manage their responsibilities, plan sponsors should develop procedures that facilitate prudent decision-making and demonstrate that the plan sponsor is disciplined about following those procedures. RPAs can add value to their retirement plan support services by helping plan sponsors develop a strategy for satisfying their fiduciary responsibilities under ERISA, including a fiduciary calendar.

Source: Newportgroup.com, December 2021

Expect More Difficultly Obtaining Fiduciary Insurance

Increasing retirement plan-focused litigation has put insurance carriers and fiduciary service providers in difficult positions. In this article published in PLANSPONSOR, McDermott Partner Erin Turley said such litigation continues to be a "major focus" in the fiduciary insurance marketplace. "It is a challenging market right now, to the point that we are looking at trying to think about ways that insurance products might be differently structured, to address what we hope will only be a short-term tightening in the market."

Source: Mwe.com, December 2021

CITs, Retirement Income Products and ESG Investing Poised for Growth

As registered investment adviser aggregator firms continue to acquire smaller players in the defined contribution space, investment managers are starting to take notice of their growing influence in deciding DC plan investments, a recent study suggests. There has been a shift in distribution dynamics as many RIA firms look to centralize their investment analysis and research.

Source: Plansponsor.com, December 2021

Strong Cybersecurity Policies Must Be a Firm Priority

Cybersecurity breaches are a growing concern among advisers, and, without sufficient protection, the benefits of America's workers may be at risk. With this challenge in mind, a recent panel discussion hosted by Fi360, a Broadridge company, detailed how to prepare a plan to keep up with current and future risks.

Source: Planadviser.com, October 2021

How 401k Recordkeepers Not Part of the 'Fab Five' Can Survive

Amid the massive consolidation among 401k providers, the top five recordkeepers have distanced themselves from the pack. The Fab Five either have or are developing proprietary products and the ability to market other financial services to participants. The question that many are asking is, "Can any of the others compete, or even survive?"

Source: Investmentnews.com (registration may be required), August 2021

Marketing Tips for 401k Plan Professionals

A webinar this week featured OneAmerica's Sandy McCarthy, the firm's president of retirement services, in conversation with Rebecca Hourihan, founder of 401k Marketing in San Diego. The pair discussed the many marketing challenges facing advisory industry practitioners, with a particular focus on the added complexities of marketing as a woman in a field in which older white men are significantly overrepresented. The pair agreed that marketing is a challenge for all advisers and one which is unfortunately all too often complicated by issues related to discrimination and stereotyping. However, with the right framework and strategies in hand, all advisers can use proven marketing tactics to grow and strengthen their business and their brand.

Source: Planadviser.com, April 2021

How RPAs Can Decommoditize Their 401k Services

Most retirement plan advisers still lead with and focus on their "Triple F" services: fees, funds, and fiduciary. While those services are still important, they have been commoditized through benchmarking databases and reporting software. But RPAs have to go further if they want to become essential to the three clients they serve at a plan sponsor: the company, the person in charge of the 401k plan, and the employees.

Source: Investmentnews.com (registration may be required), February 2021

2020 DC Consultant Study: Retirement Environment

T. Rowe Price, in partnership with Schaus Group, completed a survey of the nation's 20 leading defined contribution consulting firms, representing over 5,500 plan sponsor clients and $3.9T of assets under advisement. The objective was to understand the view of DC consultants related to retirement and DC matters driving their business, market trends, and plan sponsor decisions.

Source: Troweprice.com, November 2020

2020 PLANADVISER Retirement Plan Adviser Survey

Retirement plan advisers, perhaps more than any other experts in our industry, have a good sense of the relative strength of the products and services offered by investment and recordkeeping providers. This 2020 Retirement Plan Adviser Survey amasses data from the adviser community to discover how these individuals select providers and funds, plus, as in other years, to pick up on any developing trends.

Source: Planadviser.com (registration may be required), October 2020

2020 RIA Benchmarking Study

The study features insights based on self-reported information on topics such as asset and revenue growth, sources of new clients, products and pricing, staffing, compensation, marketing, technology, and financial performance. Now in its fourteenth year, more than 1,000 independent advisor firms representing over a trillion dollars in AUM participated in this year's study.

Source: Schwab.com, July 2020

The Online Evolution of Retirement Plan Practices

Retirement plan advisers who resume their practice as if nothing has changed after the strict social distancing rules and travel restrictions are lifted will miss out on significant opportunities and be left behind. The COVID-19 crisis will accelerate many trends that were percolating before the crisis, like industry consolidation and a focus on participants. This will create new opportunities and challenges. Here's how RPAs may want to evolve their 401k and 403b practices as the virtual world becomes a reality.

Source: Investmentnews.com (registration may be required), June 2020

Five Ways to Modernize Your Next Recordkeeper RFP

For many advisors, recordkeeper RFPs conjure up thoughts of endless amounts of documents, countless back-and-forth conversations with candidates, and immense amounts of effort and time. While it's true that the recordkeeper RFP is an involved process that requires a generous amount of effort, many advisors fail to take certain steps to help expedite and modernize their RFP process. To help you form a better recordkeeper RFP process, here are five ways you can modernize your next RFP.

Source: Fi360.com, May 2020

Impact of COVID-19 on the Adviser Industry

Retirement specialist advisers are helping plan sponsors make tough choices about plan designs, especially the expansion of loan and hardship withdrawal provisions now permitted under the CARES Act. Such work is certainly building loyalty and goodwill among the client base, sources agree, but it is also important for firm leaders to step back from these efforts to take stock of how this situation is affecting their businesses. Not only is this prudent from a client service perspective, but it also can help staff gain an important piece of mind during an incredibly stressful time.

Source: Planadviser.com, April 2020

Ten Marketing Strategies to Win More 401k Clients

This list is specially designed to help you increase your local authority as a retirement plan professional and to attract new plan sponsor clients.

Source: 401k-marketing.com, March 2020

Embrace the SECURE Act's Opportunity to Educate

The SECURE Act is not only the first major retirement legislation signed into law by Congress in the past decade, it is also a powerful opportunity for retirement plan advisers to educate plan sponsors on the annuity provisions of the legislation. RPAs should embrace the extra responsibility of making sure employers are educated about the overall restrictions and benefits of annuities and actively help them evaluate the best one for the company's plan.

Source: Investmentnews.com (registration may be required), January 2020

A New Way to Think About Building a Retirement Plan Practice

There are roughly eight million small businesses with employees in the United States. The Investment Company Institute reports that there are 555,000 401k plans in the U.S. as of June 2019. That leaves a lot of opportunity for both advisers and the retirement industry, overall. That opportunity may be realized by proactively offering 401k alternatives to these small businesses. Establishing business relationships with companies that may be interested in a SIMPLE, SEP or payroll deducted IRA may create openings down the road for 401k plans, financial planning, risk management, business planning, and other services.

Source: Planadviser.com, December 2019

Retirement Plan Providers Can Either Get Big or Get Smart

As retirement plan providers grapple with ever-increasing fee pressure, they also contend with evolving expectations from plan sponsors and participants for better, faster, and more comprehensive service offerings. According to findings from The Cerulli Report-U.S. Retirement Markets 2019, maintaining profitability while meeting these expectations will require firms to achieve economies of scale and prioritize technology initiatives.

Source: Cerulli.com, December 2019

How Retirement Plan Advisers Justify Their Fees

Despite fee compression, some retirement plan advisers have begun pushing back, pointing out to clients all of the value they bring to retirement plans and, in some cases, negotiating slightly higher fees for the work they do. One adviser charges a flat fee up to certain asset levels, and then additional basis points as plans grow, while another emphasizes the detailed, time-intensive fiduciary work he does for clients when asking for a fee increase.

Source: Planadviser.com, October 2019

What's Driving Value in the Booming 401k Adviser M&A Market?

With demand growing for large, profitable retirement plan advisory practices as defined-contribution plans and retirement take center stage, more advisers than ever are considering selling. When asked what drives value for retirement plan practices, Dick Darian, CEO of consulting firm Wise Rhino Group, replied: "Financials, financials, financials."

Source: Investmentnews.com (registration may be required), September 2019

Reducing the Number of 401k Recordkeeper Partners Poses a Challenge for Plan Advisers

Most retirement plan advisers work with dozens of recordkeepers because it's easier not to force new clients to change their 401k recordkeeper when the plan adviser is hired. But it's hard for plan advisers to manage working with so many providers. While consolidating their provider roster makes sense, the reality is that few advisers are taking major steps in that direction for practical reasons, and even fewer recordkeepers are focused on helping.

Source: Investmentnews.com (registration may be required), August 2019

Convergence of Retirement and Wealth Management Is Next 'Battleground'

This convergence, which sees wealth managers do more business with 401k plans and participants, and 401k advisers do more wealth management for individual clients, is occurring as firms see the need to diversify revenue streams and cater to client demand.

Source: Investmentnews.com (registration may be required), July 2019

Positioning Can Help 401k Advisers Boost Sales

Think about restaurant wine lists. If the cheaper wines are listed first, the better wines seem expensive. Switch the order and the perception changes. So how can retirement plan advisers apply this wisdom? First, advisers should offer at least two tiers of services. Starting with the more expensive service will make the lower-tiered service seem very reasonable without making the higher-level service expensive.

Source: Investmentnews.com (registration may be required), June 2019

Product Development Moves Beyond the 401k Plan

Retirement plan advisers with established 401k businesses are finding new revenue streams and client engagement opportunities among nonprofits and educational institutions, and in the area of estate planning.

Source: Planadviser.com, May 2019

Business as Unusual: Fiduciary Do's and Don'ts

In the marketplace, it's normal -- even expected -- that firms extend more favorable terms and/or discounts to those who do business with them across various offerings. But those "normal" practices can cause you trouble when it comes to doing business with ERISA-governed plans.

Source: Ntsa-net.org, May 2019

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