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September 22, 2014

Are you missing out on this opportunity for growing your advisory business?

by The 401k Study Group ®



401K plans deserve a new look – 

New sales strategies, technology, providers, and fee disclosures make 401K plans a great income opportunity for our members.


Increased income from clients – Many of our financial planning clients own businesses, are professionals or are senior executives at companies.   Two key things these clients have in common, you have their attention and they all are prospects for 401K plans.


Greater loyalty from clients – If we don’t approach our clients about 401k plans, other advisors will. Once these advisors earn the trust of our clients with their plans, we shouldn’t be surprised when they try to take our clients’ business away from us.


Less competition from other advisors – The fact that, according to Cogent Research, less than half of advisors have more than one 401K plan, means there is less competition for us with 401K plans, than there is for our retail business.


Asset inflows during difficult markets – We all know that our new retail client business flow slows down dramatically during down markets. But our 401K accounts still have inflows because of the automated contributions the participants make.


Increased income from professional network – Many of us have put in a lot of time and effort to build and maintain our professional network, which generates referrals for our advisory businesses. It is easy to see the 401K referrals this network can give us.


Small 401K plans desperate for help – Fortunately for us, the smaller 401K plans – under $5mil to $10mil. – are largely ignored by the major 401K providers.




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