Experts in Personalized Retirement Plan Design & Administration

3 Ways to Improve Advisory Practice Margins

Today most plan advisors are experiencing margin pressure. Short-term measures to deal with this problem include selling more plans without increasing overhead. But that means service will suffer. Alternatively, an advisor may be tempted to sell for less to get more plans and assets under management — in other words, “We’re losing money but we’ll make it up in volume.” But that strategy will only exacerbate the problem. Source:

Key Article Quotations: 

1. Focus on Plan Outcomes

“The proof may be whether [an advisor is] going back to current clients to install the “ideal plan…”

2. Consolidate Record Keeper Partners

“Managing relationships with more than three to five record keepers is an unsustainable business model and does not allow an advisor to negotiate better pricing on behalf of clients.”

3. Walking Away from Unhealthy Business

“Advisors need a mechanism to determine the profitability of each client and prospect. Without one, the business is unsustainable in an industry with declining margins.”

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Advisory Practice Margins
















Advisory Practice Margins

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