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Experts in Personalized Retirement Plan Design & Administration

Plan Advisors With Upper Hand

Today’s retirement plan advisors are in the suite seats, with an advantage over pure benefit advisors and financial planners. How can they leverage it? Even advisors who have a “Pyramid Practice” — working on retirement, benefits and wealth management — see retirement as the driver of growth, Fred Barstein notes. Source: Napa-net.org

Why do Plan Advisors have an advantage?

“Other than managing cash reserves, technically wealth managers and financial planners do not work with companies. But many focus on highly compensated executives, he writes — especially the owners of privately held companies, who are likely to cash out at some point with a large pool of assets to manage. But unless these wealth managers or financial planners also manage a company’s retirement plan, their regular access to highly compensated employees is limited (Paragraph 4).”

  • Frequent access to highly compensated employees is a key-benefit to being the Advisor over a company’s retirement plan.

“These younger Core advisors are building their wealth management business on the backs of their retirement plan business, a complete reversal from older Elite advisors,” Barstein writes. “They get premium access to many people who will never meet another financial advisor, along with a strong endorsement from their employer (Paragraph 7).”

  • Young, “Core” plan advisors ($25-$250 million in assets under management) see DC business as foundational to growing their wealth management practice. This is the opposite approach  from older Elite advisors. 

“The bottom line: Retirement plan advisors who have a robust wealth management and financial planning practice, deal with IRA rollovers, use technology to manage smaller accounts, and can help companies and employees with the convergence of benefits “will be in great demand, will command premium pricing, and will affect what’s really important — outcomes, not inputs,” according to Barstein (Paragraph 9).”

  • Business owners and managers don’t want to manage benefits and retirement. Because of this, well rounded, innovative Retirement plan advisors will continue to be in great demand.

Being able to execute on a “Pyramind Practice” often requires a qualified team to support your diverse efforts. As a retirement plan Third Party Administration (TPA) firm, BPP regularly works with these “Core” Plan Advisors. In light of this, we believe in the value of a highly qualified, unbundled retirement plan team approach. With duties segregated based on expertise, we feel the Plan Sponsor receives the highest level of customer service.

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