Mike Wesson of Acuff & Associates has shared the fact finder document he provides to the Advisors with whom he works. It is a simple two page piece with questions and suggestions outlined for an Advisor to easily use when out prospecting on their own.
The allure of collateral sales from a 401(k) book of business is a longstanding enticement to draw successful retail FAs into the world of employer-based retirement plans. Convert business owners and company executives into retail wealth management clients goes the argument. Harvest the Rollover IRAs. Sell group insurance or other business financial products to your 401(k) plan sponsors.
Advisors active in 401(k) acquire about three plans per year on average, an annual sales number that rises to nearly seven plans for the typical Heavy advisor (one who derives at least 60% of total practice revenue from the sale and servicing of 401(k) plans).
Over the past five years or so RIAs rolled into 401(k) big time and in doing so rocked the once familiar business model of more traditional 401(k) advisors. We define two groups of 401(k)-active RIAs.
Our (Brightwork Partners) most recent survey of 600 advisors active in 401(k) gathered information on advisor perceptions about their fiduciary status to plans, the extent to which plans are covered by a formal 3 (21) or 3(38) fiduciary services agreement and whether those services were being provided directly by the advisor or by a third party fiduciary such as Mesirow.
The ongoing surveys of Advisors in 401(k) conducted by Brightwork Partners document major channel shifts over recent years. Looking back to 2005, insurance – and wirehouse – affiliated advisors dominated the sale and service of 401(k) plans; together these two channels comprised 62% of all Advisors active in 401(k). By last year that had fallen to 35%.
Federal or state securities laws require brokers, investment advisers, and their firms to be licensed or registered, and to make important information public. But it's up to you to find that information and use it to protect your investment dollars.